HSBC (LON:HSBA) has opted to keep its headquarters in the UK but says it may change its mind if there is "a material change in circumstances".
The global banking group, which has been reviewing its head office location, said it decided to stay in London due to the UK's "important and globally connected economy" and supply of skilled and talented international staff.
It is thought the decision was prompted partly by a number of concessions made by chancellor George Osborne to the City in the last few months.
Osborne said in last summer's "emergency" Budget that he would gradually reduce the government's levy on the banking industry over the coming years.
HSBC said it was dropping its practice of reviewing its head office location every three years, but would revisit the matter if there was a material change in circumstances.
It initially reviewed a number of potential territories in which to base itself, but narrowed the search down to its home markets of London and Hong Kong, where it has dual primary stock market listings.
The bank, which has warned about the risks of the UK quitting the EU in the forthcoming referendum, did not say whether a decision to leave the bloc would constitute such a change.
HSBC group chief executive Stuart Gulliver said: "Having our headquarters in the UK and our significant business in Asia Pacific delivers the best of both worlds to our stakeholders."
CBI director-general Carolyn Fairbairn said: "HSBC’s thorough review and consideration of other international financial centres emphasises the need for the UK to continuously stay competitive on regulation, tax and talent."