The UK's big four banks, Lloyds, NatWest, Barclays and HSBC, made pre-tax profits of £29 billion in the first six months of 2026, up more than a fifth year on year, as higher-for-longer rates widened their margins. Chancellor John Healey is reportedly considering a £7 billion windfall tax on lenders in his first Budget on October 28, after the banks were spared under predecessor Rachel Reeves. The simplest option, restoring the bank surcharge to 8% from 3%, would raise about £2 billion, but UK Finance warns it could cost the economy nearly £20 billion over ten years. The IPPR think-tank proposes changing how the Treasury accounts for losses on banks' QE reserves, which it says could save at least £5 billion a year by the end of the decade.
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Related tickers and likely impact
JPM
▲ Likely positiveJPMorgan Chase
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Financials |
| Industry | Diversified Banks |
| Market cap | $891.9B |
| Close on 10/16/2026 | 339.67 |
| Change that session | +1.23% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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