Positive Money response to HSBC profits

February 21, 2023 

HSBC has today announced that its profits for 2022 were £14.5 billion. Its profits for the last quarter of 2022 were £4.3 billion, up more than 90% from the same period in 2021.

The results follow news last week that NatWest and Barclays made a collective £12.1 billion of profits for 2022. HSBC is using its profits to make its largest dividend payout to shareholders since 2018.

This, coupled with the source of these profits being largely due to interest rate rises from the Bank of England, has renewed calls from Positive Money for a windfall tax on banks’ excess profits. 

They are directing supporters to a petition, calling for Chancellor Jeremy Hunt to introduce  this tax, with more bumper profits and bonuses likely to be announced by Lloyds Bank tomorrow.

Fran Boait, executive director at Positive Money, commented: 

“It should come as no surprise that a bank with a track record of financing all things detrimental to the climate, nature and human rights is happy to reap the rewards of interest rate rises that have burdened families already struggling with the cost of living. 

“These profits are chiefly the result of higher interest rates paid by the public, rather than any increased efficiency or better service to customers. 

“Rather than imposing more costs on ordinary households, the government should  tax the windfall profits of banks in order to lift households out of fuel poverty and end the dependence on food banks that has come to mark so many families’ daily experience.”

Notes 

• HSBC’s announcement this morning can be found here: https://www.hsbc.com/investors/results-and-announcements/all-reporting/annual-results-2022-quick-read 

• Banks are set to reap huge excess profits, driven by the Bank of England paying higher interest rates to the tune of tens of billions of pounds a year on risk-free reserves. For more information on the case for a windfall tax on banks, see: http://positivemoney.org/wp-content/uploads/Bank-windfall-tax-briefing-2.pdf 

About

Positive Money campaigns for a money and banking system which supports a fair, democratic and sustainable economy. Set up in the aftermath of the financial crisis, Positive Money is a not-for-profit company funded by charitable trusts and foundations, as well as small donations from its network of over 65,000 supporters. www.positivemoney.org

For more information or to arrange a briefing/interview with a spokesperson, please contact press@positivemoney.org.uk.

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