HSBC resumes buyback after big profit jump in first half

British banking giant HSBC is set to buy back up to US$1 billion of shares, signaling strong financial health after reporting a significant jump in profits for the first half of 2026. The bank's profit attributable to shareholders climbed 27% year-on-year to US$14.6 billion, with pre-tax profit rising 23% to US$19.5 billion.

HSBC attributed the profit surge to growth in banking net interest income and increased fee and other income. CEO Georges Elhedery stated the bank is becoming stronger and executing strategic priorities with "pace, precision and discipline." The board approved a second interim dividend of US$0.10 per share, alongside the share buy-back program expected to conclude by the third quarter of 2026.

“

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

The resumption of share buy-backs marks a return to the practice after it was paused during HSBC's move to take full ownership of Hang Seng Bank. However, the positive financial results were tempered by expected credit losses totaling US$2.4 billion, an increase of US$400 million from the first half of 2025. The bank also reported losses of US$400 million in a fraud case and US$200 million in Hong Kong's commercial property sector.

This financial update comes as HSBC continues its global restructuring under Elhedery, aiming to focus on core markets. The bank has recently announced several deals to divest business units. HSBC's share price has performed strongly, recently breaking through its all-time high with shares trading above HK$160 in Hong Kong.

“

We also intend to initiate a share buy-back of up to US$1 billion, which we expect to complete by our third quarter 2026 results announcement.