HSBC resumes up to $1bn buyback as profit jumps

HSBC said Tuesday it would resume share repurchases with a buyback of up to $1 billion after first-half profit attributable to shareholders rose around 27% to $14.6 billion.

The bank reported profit before tax of $19.5 billion for the six months to June, up 23% from a year earlier. Profit attributable to shareholders was $11.5 billion in the first half of 2025.

HSBC said the rise was driven by growth in banking net interest income and higher fee and other income. It said profit in banking increased by $1.4 billion.

For the April-June quarter, pre-tax profit rose 60% from a year earlier to $10.1 billion, driven by strong growth in wealth management.

The bank's board approved a second interim dividend of $0.10 per share. HSBC said it would proceed with a share buyback of up to $1 billion after pausing repurchases for three quarters while rebuilding capital following the privatisation of Hang Seng Bank.

The results also included expected credit losses of $2.4 billion, $400 million more than in the first half of 2025. HSBC said it lost $400 million in a fraud case involving a British financial sponsor and $200 million in Hong Kong's commercial property sector.

HSBC also raised its total target savings to $2 billion from a previous target of $1.5 billion. Chief executive Georges Elhedery said the bank had announced 15 business or market exits since last year as part of a global restructuring focused on core markets.

Recent plans include selling a $25.3 billion Australian home loan book to Blackstone and a $2.1 billion Singapore insurance business to Germany's Allianz. HSBC also announced Sunday the sale of its retail banking business in Egypt.

Since taking office in 2024, Elhedery has closed HSBC's investment bank in the United States, Britain and Europe. HSBC shares have risen to record highs in recent weeks but dipped in Hong Kong on Tuesday.