HSBC H1 Earnings Overview
HSBC Holdings plc announced that its profit before tax for the six months ended 30 June 2026 reached $19.5 billion, representing a 23% increase over the $15.8 billion recorded in the same period a year earlier. Revenue for the half‑year rose 11% to $37.7 billion.
The bank’s second‑quarter pre‑tax profit climbed 60% year‑on‑year to $10.1 billion, reflecting stronger banking net interest income, higher fee income from wealth management and wholesale transaction banking, and increased customer activity.
Credit impairment charges rose to $2.4 billion in the first half, up from $2.0 billion a year earlier. The increase includes a $400 million fraud‑related securitisation exposure in the United Kingdom, provisions linked to commercial real‑estate exposure in Hong Kong, and allowances associated with the ongoing conflict in the Middle East.
HSBC declared a second interim dividend of $0.10 per share and announced a share buyback programme of up to $1 billion, which it expects to complete before the release of its third‑quarter results.
The bank reaffirmed its medium‑term profitability targets, maintaining a goal of a return on average tangible equity (ROATE) of at least 17% for 2026, 2027 and 2028, excluding notable items. It also kept its target of year‑on‑year revenue growth through 2028 and a 50% dividend payout ratio.
Looking ahead, HSBC expects banking net interest income of at least $46 billion in 2026, based on a more favourable interest‑rate outlook. It continues to forecast credit losses of roughly 45 basis points of average customer loans and projects operating expense growth of about 1% for the current year.