HSBC slammed for imposing charges on charities as profits surge by 74%

Plaid Cymru Senedd member has slammed HSBC for imposing charges on charities to keep their accounts open after its profits surged by 74%.

Mabon ap Gwynfor, who represents Dwyfor Meirionnydd, has taken aim at the banking giant for charging “punitive sums” by demanding more cash from local non-for-profit groups.

The London-headquartered bank wrote to organisations in the constituency seeking monthly payments and fees to keep their accounts active, and many including Merched y Wawr and Rotari Dolgellau have called on the bank to overturn its decision. Plaid Cymru has also launched a petition calling on it to do so.

HSBC’s profit soars by 74% but the bank still threatens to charge small charities, sports clubs and community groups punitive sums for accounts from next month. Please sign the petition! https://t.co/5BqFQSJ5yG pic.twitter.com/gjY27ROAbQ

— Mabon ap Gwynfor AS 🏴󠁧󠁢󠁷󠁬󠁳󠁿 (@mabonapgwynfor) October 25, 2021

HSBC’s profits rose 74% in the third quarter. Improving economic conditions enabled it to release hundreds of millions of pounds which were originally set aside for a potential spike in loan defaults during the pandemic.

Pre-tax profits rose to $5.4bn (£3.9bn) in the three months to 30 September, which is up from $3.1bn the year before

HSBC credited economic stability, with improving conditions allowing customers to repay their debts on time, which meant the bank HSBC could release about $700m from the pile of cash it built up after the pandemic started.

‘Adverse and far-reaching effect’

The petition by Plaid Cymru states states: “HSBC Bank have announced new charges for community bank accounts. We believe there will be an adverse and far-reaching effect on a number of community groups and charities in Wales if these proposed charges go ahead.

“HSBC should not introduce these new charges and instead take on and accept their social responsibility to our communities here in Wales.

“Community groups have supported people during the Covid crisis. These additional charges could be too expensive for many of them to re-establish themselves. It’s about time HSBC shouldered their responsibility. Sign this petition calling on HSBC to reverse their harmful decision.”

A HSBC UK spokesperson said: “Over the years, we have made significant enhancements to our business banking proposition to meet the evolving needs of our customers.

“Recognising this investment, we will be increasing our charges in a way that more accurately reflects the ongoing costs associated with improving and maintaining a business bank account.

“We are committed to supporting UK charities and Not For Profits and are confident that our offer remains very competitive.”