HSBC has announced a share buyback of up to $1 billion (€0.86 billion) after reporting a sharp increase in first-half earnings, driven by stronger net interest income, expanding wealth management activity and higher fee income.
The British banking group said profit attributable to shareholders climbed 27% to $14.6 billion (€12.61 billion) in the six months ending June, compared with $11.5 billion (€9.93 billion) during the same period last year. Pre-tax profit rose 23% to $19.5 billion (€16.84 billion).
Second-quarter performance was particularly strong, with pre-tax profit increasing 60% year on year to $10.1 billion (€8.72 billion). HSBC attributed the result to improved banking net interest income and continued growth in wealth management and other fee-based businesses.
Chief Executive Georges Elhedery said the bank was making steady progress in executing its long-term strategy, adding that HSBC was becoming a stronger institution through disciplined management and a clear focus on its priorities.
Reflecting confidence in its financial position, HSBC’s board approved a second interim dividend of $0.10 (€0.09) per share alongside the planned share repurchase programme. The buyback marks a return to shareholder distributions after the bank suspended repurchases for three quarters while rebuilding capital following the privatisation of Hang Seng Bank.
Despite the improved earnings, HSBC reported expected credit losses of $2.4 billion (€2.07 billion), an increase of $400 million (€345.2 million) compared with the first half of 2025. The bank said the higher provisions included a $400 million loss linked to fraud involving a British financial sponsor and another $200 million associated with Hong Kong’s commercial property market.
The lender also increased its cost-saving target to $2 billion (€1.73 billion), up from the previous goal of $1.5 billion (€1.29 billion), citing progress in its ongoing restructuring programme.
As part of its transformation strategy, HSBC said it will continue simplifying its operations through a multi-year artificial intelligence programme designed to improve efficiency and streamline internal workflows. The bank has announced 15 business or market exits since last year as it reshapes its global footprint.
Recent transactions include agreements to sell a $25.3 billion (€21.85 billion) Australian home loan portfolio to Blackstone and its $2.1 billion (€1.81 billion) insurance business in Singapore to Allianz. On Sunday, the bank also announced the sale of its retail banking operations in Egypt.
HSBC said the disposals are intended to release capital for investment in markets and businesses where it expects stronger long-term growth. Since taking over as chief executive in 2024, Elhedery has accelerated the group’s restructuring, including scaling back much of its investment banking operations in the United States, Britain and continental Europe.
Russ Mould, investment director at AJ Bell, said HSBC’s results reflected a broader trend among major banks in the UK, the United States and Europe, with stronger-than-expected profits, upgraded outlooks and substantial cash returns to shareholders through dividends and share buyback programmes.
