HSBC Profits Surge by 23% as UK Economy Remains Resilient

HSBC's profits have soared by 23% in the first six months of this year, reaching $19.5 billion (£14.5 billion). This is above the forecasted profit of $18.9 billion (£14.1 billion) and marks a significant increase from last year.

The bank's group chief executive, Georges Elhedery, said that UK growth needs strong banks to support businesses in investing and accessing financing. He stated, 'For growth to be able to manifest, you need businesses to be confident and invest. For businesses to invest, you need them to have access to financing and we, as the banking sector with a strong balance sheet and strong capital position, are the preferred financing mechanism for these businesses.'

HSBC's profit growth was driven by higher net interest income and increased fee income, particularly from its wealth management and banking services. The bank gained around 86,000 active customers to its Premier bank account in the first half, bringing the total to 1.2 million.

The TUC is calling for the Government to increase the corporation tax surcharge on banks from 3% to at least 8%, which it estimates would raise £9 billion over four years. In response, Elhedery said that 'this is a matter for the Government.'