HSBC interims beat expectations with 23% rise

4th Aug 2026 07:02

(Sharecast News) - HSBC posted a better-than-expected 23% jump in first-half profit driven by a strong second quarter on the back of net interest income and fees.

Pre-tax profit rose to $19.5bn, compared with the $18.9bn average forecast by analysts in a company-compiled consensus. The bank said it was resuming share buybacks with a $1bn repurchase plan.

Second-quarter pre-tax profit surged 60% to $10.1bn, smashing estimates of $9.5bn.

HSBC said net interest income for the half‑year rose to $18.233bn, up from $16.821bn a year earlier, an increase of $1.412bn as higher interest rates continued to support returns. The bank also reported banking net interest income of $22.9bn, compared with $21.3bn in the first half of 2025.

Here are short, extra Sharecast‑style paragraphs rewriting HSBC's Outlook section from your tab (turn0browsertab1). Each is tight, neutral and self‑contained so you can drop them straight into your story.

HSBC said it remained confident in delivering a return on average tangible equity of 17% or better across 2026, 2027 and 2028, excluding notable items. The bank also reiterated its aim for year‑on‑year revenue growth through the period, rising to 5% in 2028 on a constant‑currency basis.

The group maintained its dividend payout ratio target of 50% for the next three years, calculated on earnings per share excluding material notable items. Management said the policy reflected its focus on predictable capital returns.

For 2026, HSBC now expects banking net interest income of at least $46bn, citing a favourable rate backdrop but warning that the outlook remains volatile. Guidance had previously been set at "around $46bn".

The bank continues to forecast an expected credit loss charge of roughly 45bps of average gross customer loans for 2026, including held‑for‑sale balances. Over the medium term, it kept its planning range at 30-40bps.

The group intends to manage its CET1 ratio within a 14% to 14.5% range over the medium term, consistent with its capital framework and planned investment priorities.

Reporting by Frank Prenesti for Sharecast.com