01 August 2023 , 23:01
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Banking giant HSBC’s profits for the first six months of the year have soared to £16.8billion – or about £1,000 per second.
It comes as figures show 2.4 million UK households could not afford an essential bill in the past month. The huge jump in interest rates – which is hammering many mortgage holders – has helped HSBC to rake it in.
Its global profits of £16.8bn for the first half of 2023 are a leap of nearly 150%. Profits at its UK arm, which has announced an extra 114 branch closures, more than doubled to £3bn. The pay and perks package of HSBC group chief executive Noel Quinn went up from £4.9million to £5.6m last year.
It follows bumper results from other big banks. Lib Dem Treasury spokeswoman Sarah Olney said: “These profits are insulting while big banks hike mortgages, but refuse to pass on higher rates to savers. Enough is enough. The Government should reverse tax cuts being given to the big banks.”
HSBC profits have soared (PA)Banks are not the only big firms reporting a leap in profits. Oil giant BP yesterday revealed profits of over £2bn in three months. Unite general secretary Sharon Graham said: “Profiteering is driving prices higher, leaving workers poorer while businesses struggle to stay afloat.”
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The cost of living battle for ordinary people has been laid bare by research being published today by consumer group Which?. It found 2.4 million households missed or defaulted on an essential payment in the past month such as an energy bill or the mortgage.
Yet the Bank of England is poised to hike interest rates again tomorrow. A woman quoted by Which? said: “It’s not living but just about existing.” A man said: “I cannot stay afloat if the cost of living increases further. I am expecting my rent to increase to an unaffordable level very soon which will render me homeless."