We have considers moving HQ out of UK- HSBC

HSBC has said it is considering moving its headquarters out of London.

The bank said the review followed "regulatory and structural reforms" since the financial crisis.

HSBC's board has asked its management to "look at where the best place is for HSBC to be headquartered in this new environment," the bank said.

 

"The question is a complex one and it is too soon to say how long this will take or what the conclusion will be; but the work is under way."

The bank may decide to sell its retail bank, originally called Midland Bank, he added. HSBC, along with the UK's other banks, will be required to separate its British retail business from the rest of the group by 2019.

Regulatory pressure, political attacks following revelations of errant behaviour and hefty new taxes have sparked the decision.

HSBC has also said that uncertainty over Britain's future in the European Union is weighing on its future as well as new rules which oblige banks to split their retail and investment banking activities - the ring-fence.

The pressure to launch this review has come from the HSBC board which has been pushed by investors worried about sub-par performance. Profits are down at the bank and the share price is under-performing.

If HSBC were to move - and that is a very big, costly, politically difficult if - it would be a significant moment for the City and Britain's place as the home of major global banks.

The review also follows plans announced in the Budget to increase the bank levy from 0.156% to 0.21%.

The bank has had its headquarters in the UK since 1992 but it makes most of its money overseas. Asia accounts for about 80% of its profit.

HSBC's profit dropped 17% in 2014. HSBC blamed its "challenging year" on the $2.4bn it was forced to pay in fines and settlements in relation to foreign exchange manipulation and mis-selling of payment protection insurance.

The scandal-hit bank has also faced allegations that it helped people evade UK tax using hidden HSBC accounts in Geneva.

When asked about his view on HSBC's potential move on 5Live, Liberal Democrat leader Nick Clegg said: "They can make their own mind up… but I hope they will stay in the UK."