HSBC denies London move talk

6th Mar 2011 18:38

HSBC has rejected reports it has decided to move its headquarters from London to Hong Kong.A story in the Sunday Telegraph claimed major investors in the giant bank had been told that "a move is now more than likely".In a joint statement, the bank's chairman Douglas Flint and chief executive Stuart Gulliver said: "Talk of imminent change in HSBC's position on this matter is entirely speculative and presumptuous.""London continues to be widely recognised as one of the world's leading international financial centres, a position it has built over many decades through deliberate policy action. We have been very clear that it is our preference to remain headquartered here."But the duo again added they was concerned about the rising costs of being based in London."We are however, in light of possible regulatory changes and additional costs such as the bank levy, being increasingly asked by shareholders and investors about the likely additional cost of being headquartered in the UK."We are very clear that the City of London's competitive position deserves protection and HSBC will play a full part in this; we are encouraged by the UK government's recent commitments to do the same," it said.HSBC was founded in 1885 in Hong Kong, and moved its headquarters to London in 1992 after acquiring Midland Bank. Every three years the bank undertakes a review of its base to check being based in London still makes financial and strategic sense.The UK's largest bank recently posted a pre-tax profit of $19.04bn, an increase of $12bn, or 169%, on 2009's $7.1bn. The pre-tax profit figure failed to please investment analysts, who had been hoping the bank would crack the $20bn barrier. HSBC's cost efficiency ratio was 55.2% compared with 52.0% in 2009. The figure was above the bank's target range and deemed "unacceptable" by group chairman Douglas Flint. At the time of the results, HSBC hit out at the new UK bank levy - which would have seen it pay around £370m ($600m), if it was in place last year.