HSBC Profit Soars 23% on Strong Lending & Wealth Growth

HSBC Holdings reported a substantial first-half pretax profit of $19.5 billion, marking a 23% increase compared to the same period last year and exceeding analyst forecasts. Revenue climbed by 11% to $37.7 billion, driven by expansions in lending and wealth management sectors.

The bank also announced the reinitiation of its share buyback program, with a cap of $1 billion, expected to be completed before its third-quarter earnings. This follows a pause initiated after the acquisition of full ownership of Hang Seng Bank in October 2025, a transaction finalized in January 2026 for nearly $14 billion.

HSBC has raised its full-year 2026 guidance for net interest income to at least $46 billion. The first half saw banking net interest income grow by $1.6 billion to $22.9 billion, benefiting from increased deposit balances and higher reinvestment yields on its structural hedge. Wealth management fees and other income saw an 18% rise on a constant currency basis.

The bank's annualized return on tangible equity (RoTE) improved to 18.2%, up from 14.7% in the first half of 2025. Despite a prior quarter impacted by a $400 million charge related to alleged UK fraud and increased reserves for Middle East conflict exposure, HSBC maintained its full-year credit loss guidance at approximately 45 basis points.