HSBC launches USD1 billion buyback, first-half profit jumps 23%

HSBC Holdings PLC on Tuesday said it will launch a new share buyback programme after reporting double-digit profit growth in the first half of 2026 as interest and fee income strengthened.

HSBC, an Asia-focused, London-based universal bank, said pretax profit grew 23% to USD19.52 billion in the six months ended June 30 from USD15.81 billion in the same period a year prior.

Diluted and basic earnings per share rose 31% to USD0.85 from USD0.65.

HSBC maintained its interim dividend at USD0.10 per share and announced plans to launch a share buyback of up to USD1 billion, which the bank expects to complete before the release of its third quarter financial results.

Net interest income increased 8.4% to USD18.23 billion from USD16.82 billion, while net fee income rose 9.5% to USD7.28 billion from USD6.64 billion.

Net operating income was 10% higher at USD35.39 billion from USD32.18 billion, while total operating expenses grew 2.4% to USD17.43 billion from USD17.02 billion.

Chief Executive Officer 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. 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."

The net interest margin improved to 1.61% from 1.57%, which HSBC attributed primarily to the impact from foreign currency translation differences.

The bank's common equity tier one ratio fell to 14.1% at the end of the first half from 14.9% as at December 31, while total equity declined 4.2% to USD197.08 billion from USD205.67 billion over the same period.

HSBC shares edged down 0.4% to HKD167.50 each in Hong Kong on Tuesday afternoon, while share ended 1.4% higher at 1,597.40 pence each in London on Monday.

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