More than £16bn was wiped off the value of Britain’s biggest listed banks after HSBC signalled a greater shift towards Asia and Lloyds Banking Group raised a fresh warning on the car finance scandal.
The FTSE 100 fell 0.3pc in early trading as its financial sector was rocked by a further shift towards Asia by HSBC, the second largest listed company on the London stock market. The bank was the biggest faller on the UK’s blue-chip index after it unveiled plans to take its troubled Hong Kong-listed Hang Seng Bank private in a deal valuing the subsidiary at 290 billion Hong Kong dollars (£27.9bn). HSBC said it would not buy back any shares for the next three quarters to boost cash reserves needed for the deal, which it expects to complete in the first half of 2026. It declined by as much as 7.1pc in early trading, wiping nearly £13bn off its valuation.
Britain’s banking sector was also hit by an update from Lloyds Banking Group, which said it might have to set aside more than the £1.2bn it had earmarked to cover the costs of compensation for customers affected who were mis-sold finance. It said the additional sum “may be material”. Lloyds’ shares fell as much as 3.9pc, with NatWest dropping nearly 1pc.
