HSBC posts $19.5 billion H1 profit, resumes $1 billion share buyback

HSBC Holdings reported stronger-than-expected financial results for the first half of 2026, supported by growth in lending income and wealth management fees, prompting the bank to raise its net interest income guidance and resume its share buyback program.

Europe’s largest lender posted pre-tax profit of $19.5 billion for the first six months of the year, up 23% from $15.8 billion in the same period last year and above analysts’ forecast of $18.9 billion.

The bank also raised its 2026 net interest income guidance, saying it now expects the figure to exceed $46 billion, reflecting continued strength in lending activity and resilient earnings from its wealth management business, particularly across Asia.

HSBC announced the resumption of its share buyback program with a new $1 billion plan after a three-quarter pause following its decision last year to take Hong Kong’s Hang Seng Bank private. The lender also declared a second interim dividend of $0.10 per share, following an equivalent payout in May.

The results highlight the continued execution of CEO Georges Elhedery’s strategy to streamline operations and sharpen the bank’s focus on Asia by expanding its wealth management and cross-border banking businesses while exiting non-core markets.

As part of that strategy, HSBC completed the sale of its Singapore insurance business, Egypt’s retail banking business, and Australian mortgage operations during the period.

Revenue from the bank’s wealth business increased 18% year-on-year, driven by strong performance across Asian markets, while its corporate and institutional banking division became the largest contributor to earnings, accounting for roughly one-third of first-half profit.

Elhedery said Hong Kong remains at the center of HSBC’s wealth growth strategy in Asia, noting that the group added 640,000 new customers across the HSBC and Hang Seng brands in the market during the first six months of the year.

He also revealed that the bank currently has more than 70 initial public offerings (IPOs) in its Asian pipeline, including 40 in Hong Kong, underscoring continued momentum in the region’s capital markets.

Despite the strong earnings, HSBC’s new $1 billion share buyback fell short of some analysts’ expectations, prompting questions about the future pace of the bank’s capital return program, while its Hong Kong-listed shares traded broadly flat following the earnings announcement.