HSBC (HSBA.L) on Tuesday announced new plans to buy back up to $1 billion of its shares as it reported year-over-year growth in first-half profit.
The bank expects to complete the buyback by its third-quarter earnings release on Oct. 27, 2026. HSBC had paused repurchases in October 2025 after it announced plans to privatize Hang Seng Bank.
Profit attributable to ordinary shareholders of the parent company came in at $14.63 billion for the six months ended June 30, compared with $11.51 billion in the same period a year ago. Pretax profit rose to $19.52 billion from $15.81 billion.
Net interest income amounted to $18.23 billion, up year over year from $16.82 billion, while net fee income rose to $7.28 billion from $6.64 billion. The bank said the increase in net interest income was primarily driven by deposit balance growth and the reinvestment of its structural hedge at higher yields.
HSBC now expects banking net interest income of "at least" $46 billion for 2026, compared with previous guidance of "around" that figure, reflecting a continued favorable but volatile interest rate outlook.
The bank also reiterated the medium-term targets it set out in February, including a return on average tangible equity ratio of 17% or better for the years 2026 through 2028, as well as year-over-year revenue growth over the same period.
The board approved a second interim dividend of $0.10 per share, for a total expected distribution of $1.72 billion. The dividend will be payable Sept. 25 to shareholders on record Aug. 14.
The bank's shares were down almost 1% in early trading in London.
