HSBC reported first-half profits of $19,500 billion, a 23% increase that exceeded expectations, and announced a $1,000 billion share buyback program and an upward revision of its net interest income target.
On August 4, 2569, at 12.48:2569 PM, Reuters reported that HSBC, Europe's largest bank, reported stronger-than-expected first-half 1,000 earnings, driven by loan growth, fee income from wealth management, and capital inflows into Asian markets. The bank also announced a share buyback plan worth up to US$3 billion, after a three-quarter hiatus.
The bank's pre-tax profit for the first six months of the year was $19.5 billion, a 23% increase from $15.8 billion in the same period last year and exceeding analysts' expectations of $18.9 billion.
HSBC also revised upward its net interest income (NII) forecast for 2569, stating it expects it to exceed $46,000 billion, up from its previous estimate of only reaching that level.
The strong performance reflects the success of our Asia-focused strategy, particularly the expansion of wealth management and cross-border financial transactions, which has driven fee income coupled with a favorable interest rate environment.
HSBC announced it is resuming its share buyback program for the first time since announcing the acquisition of the remaining Hang Seng Bank late last year. The buyback program will be capped at US$1,000 billion.
In addition, the company announced a second interim dividend payment at a rate of $0.10 per share, after paying the same dividend in May.
Following the announcement of its earnings, HSBC shares listed on the Hong Kong Stock Exchange rose 0.8% to HK$169.50, reaching an all-time high.
These results also reflect the ongoing organizational restructuring under the leadership of new CEO Georges El-Hederi, which focuses on reducing its role in markets that lack sufficient business scale.
In recent months, HSBC has sold several businesses, including its insurance business in Singapore, its retail banking business in Egypt, and its mortgage lending business in Australia. Meanwhile, wealth management revenue in the first half of the year increased by 18% year-on-year, driven primarily by Asian markets.
HSBC's earnings further reinforce the positive outlook for the European banking sector, following Standard Chartered's earlier report of better-than-expected first-half profits driven by fee income growth. This reflects the continued positive impact of strong interest income on the European banking sector, even as several central banks have begun gradually lowering their policy interest rates.
Reference: www.reuters.com
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