Key facts: LSE:HSBA crosses Informa threshold; Board meets Oct 27

Shares of major U.K. banks fell Friday on reports of a potential tax hike. Lloyds and NatWest declined, while Barclays, HSBC, and Standard Chartered rose. Finance Minister John Healey may increase the bank levy to 8% from 3%, which could raise £2 billion annually but cut lenders' earnings by 6%, according to KBW analysts.

Bank of America faces $1.21B in penalties for anti-money laundering and sanctions violations, including $5B in unreported suspicious transactions. Other global banks, like TD Bank, Danske Bank, and HSBC, have also faced significant fines for similar failures, highlighting systemic compliance issues in the banking sector.

HSBC led fundraising for Indian companies in 2026, facilitating bond issuances, loans, and IPOs. The bank topped India's G3 bond market and syndicated loans, ranking second in equity fundraising. Key transactions included a $1 billion bond by ICICI Bank and a $2.9 billion QIP by State Bank of India. HSBC aims to strengthen its position across all business segments.

The South Korean Supreme Court upheld the acquittal of HSBC's Hong Kong branch in a case involving alleged naked short selling of 15.8 billion won across 9 listed companies. The court ruled that submitting orders does not constitute a sale, as no trades were executed. The case involved 3 individuals and the bank itself, with the first instance court's decision being upheld by higher courts.

Standard Chartered stock fell 3.8% to HK$221.2 after reports that Chinese tax authorities are applying a 20% personal income tax rate to returns from offshore insurance policies and financial products sold in Hong Kong, threatening its wealth management operations. HSBC also declined. The Hang Seng index was down 0.5%.

HSBC plans to cut U.K. wealth management jobs by up to 70% for financial advisers and 50% for management roles, aiming to boost efficiency through AI and digital tools. The bank expects lower personnel costs but faces risks of reduced client engagement. HSBC's CEO Georges Elhedery supports the strategy to improve productivity and profitability. Competitors like Deutsche Bank and Citigroup are pursuing similar cost-efficiency programs.