Calls for UK banks windfall tax as HSBC reports profits of $700m more than predicted

Bank records quarterly profits above $3.2bn estimated as interest rates rise on back of higher borrowing costs

HSBC's quarterly profits have increased by more than forecasts of $3.2bn (2.8bn) had predicted as the bank enjoys a windfall from rising interest rates, fuelling calls for an excess profits tax on UK banks.

The lender reported pre-tax profits of $700m more than average analyst estimates, boosted by an increase in net interest income, which is the difference between what the bank charges for loans and what it pays in interest on deposits.