HSBC boss warns Britain needs wealthy banks to drive economic growth as banking giant unveils £14.5bn half-year profits

HSBC has unveiled whopping £14.5billion half-year profits and a £740million share buyback — as its boss warned Britain needs wealthy banks to drive economic growth. The banking giant said its pre-tax profits jumped 23 per cent in the first six months of 2026, beating analysts’ forecasts. HSBC has unveiled whopping £14.5billion half-year profits and a £740million share buyback Credit: Getty HSBC chief executive Georges Elhedery argued that profitable, well-capitalised banks are essential for the economy Credit: HSBC It rounds off a bumper reporting season for the high street banks, with Lloyds, Barclays and NatWest all recording higher profits year on year. This has fuelled renewed suggestions that the Government should target banks to help raise extra revenue. Sign up for the Money newsletter Thank you! The Trades Union Congress has called for an increase in the corporation tax surcharge on banks, from the current rate of 3 per cent to at least 8 per cent. That would raise £9billion over four years, it says. But HSBC chief executive Georges Elhedery argued that profitable, well-capitalised banks are essential for the economy because businesses need finance to invest and expand. “UK growth requires strong banks,” he said, while praising the economy’s “outstanding” resilience. HSBC said earnings were lifted by stronger interest and fee income, especially from wealth management and banking services. Costs rose owing to inflation and technology spending, but Mr Elhedery’s simplification drive has removed £1.12billion worth of expenses. Most read in Money Expected credit losses hit £1.79billion, including provision for geopolitical tensions and higher trade tariffs. Even so, HSBC said lending to small and medium firms climbed 11 per cent over the year. And new business banking customers surged 48 per cent to about 680,000. TORPEDOES PROTECT JOBS THE Royal Navy has awarded BAE Systems a £135million contract to keep its torpedoes ready for action. The three-year deal covers maintenance and repairs for Spearfish and Sting Ray weapons — used by submarines, warships and maritime patrol aircraft to defend UK waters and support Britain’s nuclear deterrent. Running until June 2029, the deal will secure 315 jobs, including 100 in Portsmouth and 50 across Edinburgh, Chelmsford and Glasgow. It will also safeguard 165 jobs in BAE’s supply chain. METRO SURGES METRO BANK has posted the most profitable half-year in its 16-year history. Pre-tax profits jumped 41 per cent to £61million, while lending in key areas surged 43 per cent to £6.2billion. Specialist mortgages climbed 73 per cent to £2.2billion. The challenger bank is also expanding its 78-branch estate Chief exec Daniel Frumkin hailed its face-to-face, relationship-based strategy. SEGRO BAGGED BRITISH warehouse giant Segro has accepted a £14billion takeover offer from American rival Prologis. The FTSE 100 company had rejected three earlier approaches before Prologis tabled its “best and final” bid. Prologis will pay 1,032p for each Segro share, mostly in stock, and £3.5billion cash. The enlarged US group plans to seek a secondary listing for shares in London. Comment now