HSBC first-half pretax profit rises 23% to $19.5 billion

HSBC Holdings reported first-half pretax profit of $19.5 billion, up 23% from a year earlier and ahead of analyst expectations, as higher net interest income and stronger wealth management fees supported earnings. Second-quarter pretax profit rose 60% to $10.1 billion on revenue of $19.1 billion, helped by a net favorable impact of $2.6 billion from notable items, including a one-off gain of $1.3 billion. The bank approved a second interim dividend of $0.10 per share and said it would repurchase up to $1 billion of shares, resuming buybacks after a pause linked to its roughly $14 billion take-private deal for Hang Seng Bank. HSBC raised its 2026 banking net interest income guidance to at least $46 billion, kept its 17% return on tangible equity target and said its restructuring program is now expected to deliver $2 billion of cost savings, up from an earlier $1.5 billion goal. Wealth revenue rose 18% in the first half, though second-quarter inflows slowed to $25 billion from $39 billion in the first quarter as investors watched the potential fallout from Beijing's clampdown on cross-border capital flows. Credit costs remained elevated, with $2.4 billion of expected credit losses in the first half, including charges tied to Hong Kong commercial real estate and a fraud case involving a British financial sponsor.