HSBC holds out bigger divi hope

Shareholders in Europe's biggest bank, HSBC, were today told they would be paid bigger dividends if the Government dropped its £2.5 billion bank levy.

Chairman Douglas Flint said: "We take no issue with the right of the UK Government to raise a levy on the banking industry, particularly when it has had to risk taxpayers' money to rescue a number of UK institutions.

"We estimate this annual charge will amount to around $600 million in 2011, of which approximately two thirds would relate to our non-UK balance sheet. We regard the levy as akin to a distribution of profits and, should it be restructured, we intend to add any amount saved to future dividends paid to our shareholders"