Overview
- On Tuesday HSBC reported second-quarter pre-tax profit of about $10.1 billion, roughly 60% higher than a year earlier, and said first-half pre-tax profit reached $19.5 billion.
- The board approved a second interim dividend of $0.10 per share and a new share repurchase programme of up to $1 billion that the bank expects to complete by its third-quarter results announcement.
- HSBC said gains were driven by a 9% rise in net interest income to $9.29 billion and stronger fee income from wealth management, while operating expenses fell modestly as restructuring costs eased.
- Management raised its end-2026 cost-cutting target and highlighted an annualised return on tangible equity above its 17% target in the quarter excluding notable items, even as the results included one-off gains and higher expected credit losses.
- The bank disclosed specific offsets to the upbeat picture, including $2.4 billion in expected credit losses, a $400 million fraud-related loss and $200 million of Hong Kong commercial property exposure, and said it had paused buybacks since October to fund the Hang Seng privatisation.