Global Market: HSBC H1 profit jumps 23%, beats estimates on strong wealth, interest income

HSBC Holdings reported a stronger-than-expected 23% rise in first-half profit, supported by higher net interest income and robust growth in wealth management, as strong customer activity and deal flows lifted fee income, Reuters reported.

Europe's largest bank posted a pretax profit of $19.5 billion for the first six months of the year, compared with $15.8 billion in the corresponding period last year.

The result exceeded the $18.9 billion average estimate compiled by HSBC from broker forecasts, reflecting resilient performance across its core businesses despite an evolving global interest rate environment.


Growth in net interest income, along with stronger wealth management revenues, helped offset broader macroeconomic uncertainties. According to Reuters, increased customer investment activity and dealmaking contributed to higher fee income during the period.

HSBC resumes share buybacks

Alongside its earnings, HSBC announced a new share repurchase programme of up to $1 billion, marking its first buyback since completing the privatisation of Hong Kong-based Hang Seng Bank.

The move signals the lender's continued focus on returning excess capital to shareholders while maintaining confidence in its capital position.

Interim dividend declared

HSBC also declared a second interim dividend of $0.10 per share, matching the interim payout announced in May.

The combination of the dividend and the renewed share buyback underscores the bank's commitment to shareholder returns following a stronger-than-expected first-half financial performance.