HSBC Posts Record Profits Amid Calls for Bank Tax Hikes

HSBC's group chief executive Georges Elhedery said that 'UK growth needs strong banks' after the bank recorded a pre-tax profit of $19.5 billion (£14.5 billion) for the first six months of the year, a 23% increase from the same period last year.

The profit was higher than analysts had forecasted at $18.9 billion (£14.1 billion), and comes as other high street banks have also reported increased profits.

HSBC's operating expenses went up due to plans to invest in technology and inflation, but cost-cutting efforts under Elhedery's leadership helped mitigate the impact, stripping out $1.5 billion worth of costs ahead of schedule.

The bank is planning to launch a new share buyback of up to $1 billion (£740 million), and Elhedery said that the UK economy has been 'outstandingly resilient' despite global challenges, with no indication of slowing down investment growth.