HSBC announces up to $1 billion share buyback after profit surge

HSBC is launching a share buyback program of up to $1 billion, signaling confidence after reporting a substantial 27% rise in its first-half net profit to $14.6 billion. The banking giant attributed this surge to growth in net interest income and increased fees and other revenues.

"HSBC is becoming the stronger bank we set out to build. We are executing our strategic priorities with speed, precision, and discipline," stated Group Chief Executive Georges Elhedery. The bank's pre-tax profit also climbed 23% year-on-year to $19.5 billion.

“

HSBC is becoming the stronger bank we set out to build. We are executing our strategic priorities with speed, precision, and discipline.

As a sign of its financial strength, HSBC's board approved a second interim dividend of $0.10 per share. The bank plans to complete the share buyback program by the time it releases its third-quarter results. This move marks a return to share repurchases after a suspension related to its acquisition of Hang Seng Bank.

However, the positive financial news was tempered by expected credit losses totaling $2.4 billion, an increase from the previous year. HSBC also disclosed losses of $400 million from a fraud case involving a British financial investor and $200 million in Hong Kong's commercial real estate sector. These challenges come as the bank undergoes a global restructuring under Elhedery to focus on its core markets.

“

We also intend to launch a share buyback program of up to $1 billion, which we expect to complete by the publication of our third-quarter 2026 results.