ASIA-FOCUSED banks Standard Chartered and HSBC could be tempted to abandon their London headquarters to avoid a jump in the U.K. bank tax set to cost them a combined US$2 billion a year, investors and analysts said.

Investors in both banks, but particularly Standard Chartered, have in the past encouraged their boards to consider leaving Britain, and last week’s jump in the U.K. bank levy is building pressure.

“I think it is a live issue for both names and that’s the first time I’ve ever been of that opinion,” said one HSBC shareholder, who also owns some Standard Chartered stock.

“It’s always been talked about but there is a confluence of events for these stocks that now make it a realistic prospect.”

Britain last week said it will increase its annual bank levy by more than a quarter to 3.7 billion pounds (US$5.5 billion) a year. About 70 percent comes from the big U.K. banks, and more than one-third could come from the two Asia-focused banks.

One of Standard Chartered’s 10 largest investors told Reuters it would make sense for the bank to look again at the issue.

Standard Chartered faces paying about US$500 million under the tax this year, or about 9 percent of expected profits. The tax cost it US$366 million last year, up from US$235 million in 2013.

HSBC could pay US$1.5 billion under the levy this year, or about 7 percent of expected profits. It paid US$1.1 billion last year, up from US$904 million in 2013, and said 58 percent related to activity outside Britain.

“It’s getting to a material point now with the levy. It’s a big cost every year and it’s only going north. If investors really start agitating for it you have to take note of it,” one person familiar with the matter said.

HSBC and Standard Chartered executives have said in recent years they have looked at their domicile, and London had remained their preferred location.(SD-Agencies)