HSBC lifted first-half profit before tax by 23% to US$19.5 billion as net interest income and wealth fees increased.
Profit after tax rose 23% to US$15.3 billion, while revenue grew 11% to US$37.7 billion.
The bank booked US$300 million in restructuring costs, down from US$600 million a year earlier.
The comparison also benefited from US$2.1 billion in Bank of Communications-related losses recorded in 2025.
Excluding notable items and currency movements, profit before tax rose by US$1.1 billion to US$20.4 billion.
Wealth and Net Interest Income Drive Growth
Banking net interest income increased by US$1.6 billion to US$22.9 billion, supported by deposit growth and higher structural hedge returns.
Wealth income also rose on stronger customer activity in HSBC’s International Wealth and Premier Banking and Hong Kong businesses.
Expected credit losses increased by US$400 million to US$2.4 billion, including US$200 million tied to Hong Kong commercial real estate.
Operating expenses rose 2% to US$17.4 billion, while customer lending increased by US$34 billion and deposits by US$41 billion from the end of 2025.
HSBC’s common equity tier 1 capital ratio fell to 14.1%.
HSBC Raises 2026 Net Interest Income Outlook
Second-quarter profit before tax jumped 60% year on year to US$10.1 billion, while revenue rose to US$19.1 billion.
The bank raised its 2026 banking net interest income guidance to at least US$46 billion, from around US$46 billion previously.
HSBC maintained its target for return on average tangible equity of at least 17% through 2028 and expects operating expenses to grow by about 1% this year.
The board approved a second interim dividend of US$0.10 per share and a share buyback of up to US$1 billion.
Georges Elhedery, Group CEO, said,
“HSBC is becoming the stronger bank we set out to build. We are executing our strategic priorities with pace, precision and discipline.
This is allowing our four businesses to focus on their core strengths, grow, work together more effectively and deepen customer relationships. The result is a bank capable of achieving more.”
Featured image: Edited by Fintech News Singapore, based on image by HSBC
