HSBC H1 2024 profits: Positive Money response

London, 31st July 2024 - Positive Money responds to HSBC’s announcement this morning that its pre-tax profits for the first half of 2024 were £16.8 billion.

Ellie McLaughlin, senior policy and advocacy officer at Positive Money, said: 

“HSBC’s latest profits are proof that not everyone is worse off from the cost of living crisis, with the bank having made far more than they did in the low interest rate period before the pandemic.

“These new figures demonstrate beyond doubt that banks continue to prosper from the same higher interest rates which have forced thousands into mortgage arrears and pushed home repossessions through the roof.

“If the new government wishes to dispel swelling rumours that it’s allowing City lobbyists to trade cash for access to policymakers, it should place a windfall tax on these unmerited bank profits, showing that it intends to work in the public’s best interests, not bankers’.”

Notes:

• Today’s announcement from HSBC can be found here: https://www.hsbc.com/investors/results-and-announcements 

• HSBC’s pre-tax H1 profits for 2018 (before the pandemic, cost of living crisis or rate rises) were £8.3 billion: https://www.hsbc.com/investors/results-and-announcements/all-reporting/group?page=1&take=20 

• Labour’s relationships with the City have been covered extensively here: https://www.opendemocracy.net/en/dark-money-investigations/lovebombed-by-lobbyists-how-starmer-labour-became-the-party-of-big-business/ 

• The latest figures from the Ministry of Justice show that 5,182 repossession claims were made in England and Wales in the first quarter of 2024, an increase of more than 40% in just 18 months (May 2024): https://au.lifestyle.yahoo.com/mortgage-crisis-deepens-one-four-120210508.html 

• UK mortgages in arrears hit a seven-year high in the final quarter of 2023, according to Bank of England data. The figure was up 50% compared with Q4 2022: https://www.bankofengland.co.uk/statistics/mortgage-lenders-and-administrators/2023/2023-q4 

• Calls for a windfall tax on banks have been echoed by MPs, including Angela Eagle, John McDonnell, Clive Lewis, Diane Abbott and Richard Burgon

• Polling commissioned by Positive Money in September 2023 found the majority of the public supports a windfall tax on banks: https://positivemoney.org/2023/09/uk-public-support-windfall-tax-on-banks-polling-shows/ 

About:

Positive Money is an international research and campaign organisation working to redesign our economic system for social justice and a liveable planet. 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 supporters. Find out more: positivemoney.org