HSBC resumes share buyback after first-half profit jumps to US$14.6 billion

British banking giant HSBC is set to buy back up to US$1 billion of shares, signaling strong confidence following a significant jump in profits during the first half of 2026. The bank reported a 27 percent rise in profit attributable to shareholders, reaching US$14.6 billion, up from US$11.5 billion in the same period last year. Pre-tax profit also saw a healthy increase of 23 percent year-on-year, climbing 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, "HSBC is becoming the stronger bank we set out to build. We are executing our strategic priorities with pace, precision and discipline." The bank's board has approved a second interim dividend of US$0.10 per share, alongside the share buy-back program, which is expected to conclude by the third quarter of 2026.

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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 repurchases marks a return to a previous strategy after HSBC paused them to gain full ownership of Hang Seng Bank. However, the positive financial news is tempered by expected credit losses totaling US$2.4 billion, an increase of US$400 million compared to the first half of 2025. The bank also reported losses of US$400 million in a fraud case and US$200 million related to Hong Kong's commercial property sector.

This financial update comes as HSBC undergoes a global restructuring under Elhedery, focusing on its core markets and divesting non-essential business units. The bank's share price has recently surged, breaking through its all-time high and trading above HK$160 in Hong Kong.

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