HSBC has decided to keep its headquarters in London, ending 10 months of uncertainty with a decision that reflects how the UK political climate has shifted back in favour of the banking sector.

The decision by the board of the UK’s biggest bank is a Valentine’s day gift for the City of London and the British government, as the bank’s review of its domicile had become a litmus test for the country’s attractiveness as a financial centre.

Investor attention is now likely to shift to the leadership of HSBC. Douglas Flint is expected to be replaced as chairman in the next year and the bank is likely to seek a successor to Stuart Gulliver as chief executive the following year. Had the bank chosen to move overseas, the duo could have been asked to stay on for a few more years to oversee the shift.