Big Four banks made £20billion in 9 months as households battled interest rates

02 February 2023 , 00:01

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The Bank is expected to up rates again today, to 4%, the highest since the 2008 financial crisis (Image: Bloomberg via Getty Images)

The Big Four banks raked in nearly £20billion profit in the first nine months of last year as households were left reeling from a surge in interest rates.

Union Unite has called for a windfall tax after accusing Barclays, HSBC, Lloyds and NatWest of “profiteering”.

Lenders have made a packet on the back of a series of Bank of England rate hikes to try to curb inflation.

The Bank is expected to up rates again today, to 4%, the highest since the 2008 financial crisis.

In December 2021, its base rate stood at just 0.1%. The rise has boosted the amount banks make from loans.

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Unite said, in the first nine months of last year, Barclays made profits of £4.6bn, HSBC Holdings more than £8.9bn, Lloyds Banking Group over £3.9bn, and NatWest Group £2.2bn.

General secretary of the Unite union Sharon Graham is calling for a windfall tax on the excess profits made by big banks (Coventry Live/Tristan Potter)

Its general secretary Sharon Graham said: “Interest rate rises are putting the fear of death into households across Britain, but we know now that at the same time they are delivering billions in excess profits to the big City banks.

“Our economy is broken. Nothing symbolises that better than politicians demanding pay cuts from nurses whilst doing nothing to get City noses out of the trough.”

“That’s why I am calling for a windfall tax on the excess profits of the big banks. Workers did not create this crisis and they should not be the ones to pay for it.

The profits came as millions faced a surge in interest rates (Getty Images/Radius Images)

“It’s time the profiteers and their friends in the City were told profiteering won’t pay.”

Last November, former Bank of England Deputy Governor Charlie Bean backed the idea of a raid on banks’ windfall profits to fill a hole in the public finances.

Graham Hiscott