Life is so unfair. Lloyds Bank, a pure play on the UK with the overhang of government ownership, trades on 15 times earnings. HSBC, with its diversified portfolio of banks around the world and great exposure to Asian growth, trades on 12. So it is hardly surprising that HSBC has discussed floating a stake in its UK retail business.

A float could generate some capital (analysts at Bernstein estimate about ￡6bn) but that is tiny in the context of HSBC’s $2.6tn balance sheet. And in any case, with a Basel III core tier one ratio of 10.1 per cent, capital is not a big problem for HSBC. But a partial IPO would sit nicely with the UK’s incoming ringfencing rules, which require retail operations to be split from investment banks. And it could ease the way for a bigger shake up down the line – a bank which prides itself on its exposure to global trade and Asia does not necessarily need a UK retail operation.

Shorn of some of its UK business, HSBC could even consider moving its headquarters back to Hong Kong, avoiding the UK bank levy, which will cost $800m-$900m this year.