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HSBC Reports 23% Rise in H1 Pretax Profit and Announces Buyback and Dividend

The bank said stronger net interest income and wealth-management fees underpinned results while it resumes shareholder returns despite rising credit provisions and costs.

Overview

  • HSBC said first-half pretax profit rose 23% to US$19.5 billion, driven by stronger interest margins and fee income.
  • The board approved a share buyback programme of up to US$1 billion and a second interim dividend of US$0.10 per share.
  • Management attributed the gains to higher net interest income and growth in wealth-management and banking fees.
  • HSBC warned that the profit increase was partly offset by higher expected credit losses and rising operating expenses.
  • The result modestly beat the broker average compiled by the bank and signals a shift back to returning capital to shareholders while investors watch credit and cost trends.