HSBC unveils $1bn buyback as profits mushroom on Hong Kong growth

Finance Banks Written by: Oliver Haill 07:24 Tue 04 Aug 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup News Service, Gracenote... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. HSBC Holdings PLC ( LSE:HSBA ) View Price & Profile HSBC unveils $1bn buyback as profits mushroom on Hong Kong growth Published: 07:24 04 Aug 2026 BST HSBC Holdings PLC (LSE:HSBA) has unveiled a fresh $1 billion share buyback after first-half profit rose 23% and second-quarter earnings beat forecasts, supported by higher net interest income and growth in wealth. The FTSE 100's largest company reported pre-tax profit of $19.5 billion for the first six months of 2026, up from $15.8 billion a year earlier. Second-quarter pre-tax profit jumped 60% to $10.1 billion, beating the consensus estimate of $9.51 billion. The comparison was flattered by a $2.1 billion charge relating to HSBC's stake in China's Bank of Communications a year earlier. Overall, first-half profit benefited from a favourable $2.2 billion year-on-year swing in notable items. Excluding notable items and currency movements, pre-tax profit increased by $1.1 billion to $20.4 billion. First-half revenue rose 11% to $37.7 billion, while banking net interest income increased 8% to $22.9 billion, helped by deposit growth and the reinvestment of HSBC's structural hedge at higher yields. The Asia-focused bank also nudged guidance higher, saying banking NII would be "at least" $46 billion rather than "around" $46 billion previously. Wealth and wholesale transaction banking fees also benefited from stronger customer activity, particularly in Hong Kong. Expected credit losses increased 20% to $2.4 billion, including charges relating to UK fraud exposure, Hong Kong commercial property and uncertainty caused by the Middle East conflict. Alongside the buyback, HSBC approved a second interim dividend of 10 cents per share. It maintained its target for a return on average tangible equity of at least 17% through 2028. Chief executive Georges Elhedery said: "HSBC is becoming the stronger bank we set out to build. We are executing our strategic priorities with pace, precision and discipline." Continue reading