HSBC warns about the impact of taxes on economic growth

• HSBC warns about the negative impact of taxes on investments.
• The bank's profit is expected to decrease by 29% in the second quarter of 2025.
• The demand for loans will remain low due to economic uncertainty.

The General Director of HSBC, George Elkhider, expressed concern regarding the potential increase in taxes on banks, which could threaten the economic growth of Great Britain. He noted that banks are already subject to the highest tax rates on profit compared to other sectors, which could affect their investment capacity.

In his statement, Elkhider indicated that new tax obligations could reduce investments and, ultimately, negatively impact the economic growth of the country. This statement came against the backdrop of HSBC's profits dropping by 29% in the second quarter, primarily due to problems with the Chinese bank and commercial real estate in Hong Kong.

In the first half of 2025, the bank's profit is expected to drop to $15.8 billion, which is 26% less than in the corresponding period of the previous year. The decline in profit was attributed to declining operations in Argentina and Canada, as well as financial losses related to interest rates in the Chinese bank.

HSBC also noted that the demand for lending remains low due to economic uncertainty. Elkhider emphasized that many clients have postponed their investments, waiting for stabilization of the situation.

Despite the decline in profits, HSBC continues to pay dividends and plans to buy back shares worth up to $3 billion. The bank also pointed to positive prospects, particularly in concluding new trade agreements with the USA, the EU, and India.

Tags: Economy