HSBC first-half profit jumps 23% on higher rates and wealth growth, sets $1.3 billion share buyback
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HSBC also announced a resumption of its share buybacks with an up to US$1 billion (S$1.3 billion) plan, the first since it took smaller Hong Kong lender Hang Seng Bank private.
PHOTO: BLOOMBERG
HONG KONG/LONDON – HSBC Holdings reported on Aug 4 a 23 per cent first-half profit surge that bettered expectations, as rising net interest income and revenue from wealth management pushed up fee income on robust money and deal flows.
Europe’s largest bank posted a pre-tax profit of US$19.5 billion (S$25 billion) for the first six months of 2026, versus US$15.8 billion a year earlier.
This compared with the US$18.9 billion average of broker estimates compiled by HSBC.
HSBC’s solid performance reflects the payoff of its Asian focus, where an overhaul targeting wealth and cross-border banking drove fee income growth alongside a favourable rate backdrop.
It also caps a strong earnings season for Europe’s big banks, which have extended a more than two-year-long recovery thanks to a surge in trading activity and resilient interest income despite dips in central bank rates.
HSBC lifted its guidance for net interest income for 2026, saying it now expects to exceed US$46 billion, having previously guided that it would hit that level.
HSBC announced a resumption of its share buybacks with an up to US$1 billion plan, the first since it took smaller Hong Kong lender Hang Seng Bank private.
The bank also announced a second interim dividend of 10 US cents a share, following a similar payout in May.
The half-year update from HSBC showed chief executive Georges Elhedery continuing his strategy of streamlining the lender by exiting markets where it lacks scale, as the bank sold its Singapore insurance, Egypt retail banking and Australian mortgage businesses.
Wealth revenue in the first half grew 18 per cent from a year ago, backed by strong growth from its Asian markets. REUTERS
