Arabic version: أسهم بنوك لندن تتراجع وسط تقارير عن زيادة الضريبة الإضافية

According to Cnbc, shares in several major British banks moved lower on Friday following reports that the U.K. government could raise its bank-profit surcharge. Lloyds Banking Group led the losses, falling 1.8%, while NatWest declined 1.51% by 11:30 a.m. in London. Barclays rose 0.13% after earlier losses, while HSBC and Standard Chartered, which earn much of their profit overseas, gained 1.2% and 0.71%, respectively.

Finance Minister John Healey is expected to raise the sector-specific levy to 8% from 3% in his Oct. 28 budget, his first as Chancellor. The surcharge sits on top of corporation tax and was reduced from 8% to 3% under Rishi Sunak’s Conservative government in 2023. KBW analysts said the increase could raise £2 billion, or $2.67 billion, a year for the Treasury but could cut lenders’ earnings by 6%.

Healey described banks as the “jewel” in the U.K.’s economic crown in a Bloomberg interview on Thursday. Aviva CEO Amanda Blanc said financial services is one of the country’s “core industries,” urging policies that encourage investment in the U.K. rather than making it harder for companies and investors to commit capital.

PwC data showed U.K. banks face a total tax rate of more than 46%, compared with 38.9% for banks in Frankfurt and about 27% in New York. Citi said the budget could provide a “clearing event” by resolving uncertainty, though fears of a tax-and-spend budget and geopolitical developments had pushed gilt yields higher. The bank expects mixed third-quarter results, forecasting adjusted pretax profit above consensus at Barclays and NatWest but below consensus at HSBC, Lloyds and Standard Chartered.