The boss of Britain’s biggest quoted company has urged Andy Burnham not to impose a windfall tax on banks.

HSBC chief executive Georges Elhedery warned the Prime Minister that the economy would be hit if the banking sector faced the extra levy that some campaigners have demanded.

‘Growth requires strong banks,’ Elhedery said as he unveiled a 23 per cent rise in profits to £14.5billion in the first half of the year, helped by ‘strong growth’ in HSBC’s wealth management unit in Asia.

The bank also revealed that profits in its UK arm had grown by 7.7 per cent to £2.9billion.

‘For growth to manifest, you need businesses to be confident and invest,’ Elhedery said.

‘For businesses to invest, you need them to have access to financing. And banks are the preferred financing mechanism for these businesses,’ he added.

The comments echo those made by NatWest boss Paul Thwaite last week, who called for ‘consistency of policies so businesses can plan’.

Banks pay a 3 per cent surcharge on top of the standard 25 per cent corporation tax rate following a cut in 2023. 

Restoring the levy to 8 per cent would raise £9billion over four years, according to the Trades Union Congress, which is pushing for higher bank taxes.

Lenders have gained from higher-for-longer interest rates that have boosted their net interest income – the difference between what they pay savers and charge borrowers.

Lebanon-born Elhedery described the economy as ‘outstandingly resilient’, despite ‘all the challenges we’ve seen lately’, notably the Middle East conflict, which has sent energy prices sky-rocketing.

He added: ‘The UK remains a very attractive international investment hub and we continue to see foreign direct investment in the UK creating jobs, in all parts.’

Elhedery swerved suggestions that HSBC might review its commitment to its London headquarters if banks faced higher taxes, and highlighted the bank’s lending across the country.

‘More than 60 per cent of our loan portfolio is to businesses outside of London and the South East,’ he said.

HSBC has substantial operations in Edinburgh, Swansea, Leeds, Sheffield and Chester, while its retail bank headquarters is in Birmingham.

But the bulk of the bank’s activities are in Asia, especially in Hong Kong and China, which account for over two-thirds of its profits.

HSBC also announced that it would resume its $1billion share buyback scheme after pausing it late last year following its takeover of Hong Kong’s Hang Seng Bank.

The bank is also considering boosting its bonus pool for bankers after a cap on their bonuses was lifted.

Elhedery said the bank had exited 15 non-strategic businesses since 2025, most recently selling its Singapore insurance arm to Germany’s Allianz.

HSBC shares fell yesterday by 0.8 per cent, or 12.8p, to 1584.6p, having risen more than 70 per cent in the past 12 months.

Analysts expect HSBC and the four other big UK-based banks – Lloyds, NatWest, Barclays and Standard Chartered – to rack up profits this year of more than £60billion.