HSBC Profit Jumps 32% as UK Tax Debate Heats Up

HSBC recorded a 32% increase in third-quarter profits, reaching $9.6 billion. This performance was driven by higher interest rates and lower provisions for loan losses. The result fell slightly short of financial market estimates.

With robust profits, the bank announced a $2.7 billion payout to shareholders. This amount includes a $1 billion share buyback program and interim dividends. The financial institution follows a recent trend set by Barclays, which also reported higher earnings.

The release of these figures comes amid anticipation regarding the British budget. The government is evaluating the possibility of increasing the tax burden on the banking sector. The financial strength shown by major banks serves as a basis for debates on new taxes in the country.

HSBC shares fell on the London market following the data release. Executives attributed the negative reaction to high investor expectations regarding net interest income guidance. The market reacted with caution to the quarterly report.

The scenario of high profits at major global banks may pressure fiscal risk perceptions in developed economies. The possibility of extra taxation impacts the attractiveness of traditional financial assets.