HSBC beats H1 profit forecasts, resumes share buybacks and raises income guidance

Hong Kong/London: HSBC Holdings reported stronger-than-expected first-half earnings and resumed share buybacks after a three-quarter pause, as growth in lending and wealth management helped Europe's largest bank benefit from strong business activity across its key Asian markets. The bank posted pre-tax profit of $19.5 billion for the first six months of 2026, up 23% from $15.8 billion a year earlier and ahead of analysts' forecasts of $18.9 billion. HSBC also upgraded its outlook for net interest income, saying it now expects the figure to exceed $46 billion in 2026, compared with previous guidance that it would reach that level. The lender announced a new share buyback programme of up to $1 billion, marking the resumption of buybacks after suspending them when it announced plans last year to take Hong Kong-based Hang Seng Bank private. The bank also declared a second interim dividend of $0.10 per share, following a similar payout made in May. Despite the strong results, HSBC's Hong Kong-listed shares traded broadly flat on Tuesday after touching a record high of HK$169.50 earlier. Analysts at Citi noted that the new buyback programme was below market expectations of approximately $2.2 billion, raising questions about the future pace of capital returns. Wealth business drives growth The results underscore HSBC's continued focus on Asia, particularly wealth management and cross-border banking, areas that have become central pillars of its growth strategy. Revenue from HSBC's wealth business increased 18% year-on-year during the first half, supported by strong demand across Asian markets. Chief Executive Officer Georges Elhedery said Hong Kong remains a key growth market for the bank's wealth operations. "Hong Kong remains front and centre in the growth of our wealth business in Asia," he said during an earnings briefing. The bank added 640,000 new customers in Hong Kong during the first half of the year across the HSBC and Hang Seng brands. Elhedery said account-opening activity had remained resilient despite measures introduced in mainland China in late May aimed at restricting illegal cross-border financial flows. Corporate banking remains largest profit contributor HSBC's corporate and institutional banking division continued to benefit from growing demand for cross-border financial services, becoming the group's largest source of earnings. The division accounted for around one-third of first-half profit, supported by increasing international business activity. The bank also revealed that it has more than 70 initial public offerings (IPOs) in the pipeline across Asia, including 40 in Hong Kong, highlighting continued activity in regional capital markets. Continued portfolio reshaping The earnings update also reflected Elhedery's broader strategy of streamlining HSBC's global operations by exiting businesses where the bank lacks sufficient scale. During the first half, HSBC completed the sale of its Singapore insurance business, Egyptian retail banking operations, and Australian mortgage business. The results cap a strong earnings season for major European banks, many of which have benefited from resilient interest income and increased trading activity despite shifts in global interest-rate environments.