HSBC reports 23% H1 pretax profit rise, launches $1B buyback

HSBC reported a 23 percent surge in pretax profit for the first half of 2026, driven by higher net interest income and robust growth in wealth management fees. The Europe-based banking giant announced the results on Tuesday, August 4, alongside a resumption of its share buyback program and a maintained dividend.

For the six months ended June 30, the bank posted a pretax profit of $19.5 billion, a significant increase from $15.8 billion in the same period last year. This performance exceeded analyst forecasts, which had averaged $18.9 billion. The second quarter saw an even sharper rise, with pretax profit jumping 60 percent to $10.1 billion, also surpassing estimates.

The bank attributed the strong results to increased net interest income and higher fee income, particularly from wealth management and banking services in its key Asian markets. Wealth revenue alone grew 18 percent year-over-year. These gains were partially offset by higher expected credit losses, which rose to $2.4 billion from $2.0 billion a year earlier. The bank cited a fraud-related exposure in the UK, provisions linked to Hong Kong's commercial real estate market, and allowances tied to the ongoing conflict...