The Bank's Profits Rose 60% Year on Year, Driven by Wealth Management Fees and Higher Interest Rates

Campaigners have renewed calls for a windfall tax on UK banks that could raise £19bn to fund Andy Burnham's cost of living agenda, after HSBC reported $10.1bn (£7.5bn) in second-quarter profits. The bank's profits rose 60% year on year, driven by wealth management fees and higher interest rates. HSBC chief executive Georges Elhedery said he would consider increasing banker bonuses and restarting a share buy-back programme.

Collective profits for HSBC, NatWest, Barclays and Lloyds reached £29.2bn in the first half of the year. Positive Money said banks had pledged £13.7bn to shareholders, proving they could shoulder a tax modelled on Spain's levy, which targets revenues above £800m at 38%. The £19bn raised would cover Burnham's VAT cut on electricity bills, the £2 bus fare cap and business rates relief for pubs more than 13 times over.

"Previous governments have allowed the powerful banking lobby to persuade them against taxing these record-breaking profits, said Sara Hall, co-director of Positive Money. "We're calling on Andy Burnham to break with his predecessors by resisting the demands of City lobbyists. Banking bosses said their ability to lend was crucial for growth.

"UK growth requires strong banks, Elhedery said. TUC general secretary Paul Nowak said: "There is now a mountain of evidence to suggest that banks can easily afford to pay more tax.