HSBC Holdings reported a 23% increase in pretax profit for the first half of 2026, reaching $19.5 billion, up from $15.8 billion a year earlier [1, 2, 3]. The bank's second-quarter pretax profit rose 60% year-on-year to about $10.1 billion, outperforming analyst estimates of $9.5 billion [4, 5, 6, 7, 8]. Earnings in Q2 were boosted by $2.6 billion in notable items and growth in banking and wealth management income [4, 7, 8].

HSBC resumed its share buyback program on August 4, 2026, with authorization to repurchase up to $1 billion of shares, marking the first buyback since pausing in October 2025 to conserve capital for acquiring Hang Seng Bank [1, 4, 5, 3, 7, 8]. Alongside the buyback, the bank declared a second interim dividend of 10 US cents per share for Q2, matching the Q1 payout [1, 5, 3, 6].

The bank raised its targeted total cost savings from $1.5 billion to $2 billion amid ongoing restructuring efforts [4, 8]. Net interest income in Q2 grew 9% year-on-year to approximately $9.29 billion, while operating expenses fell 2% due to lower restructuring costs [6]. HSBC reported expected credit losses of about $1.1 billion in Q2, including exposures tied to Hong Kong's commercial real estate sector [4, 8].

CEO Georges Elhedery stressed the strategic focus on wealth management and highlighted the growing importance of Hong Kong as a regional wealth hub. He said, "We are executing our strategic priorities with pace, precision and discipline. This is allowing our four businesses to focus on their core strengths, grow, work together more effectively and deepen customer relationships" [4, 7, 8].

In the weeks leading to August 4, HSBC shares reached record highs, recovering from a June slump tied to concerns over China's clampdown on cross-border capital flows and its potential impact on wealth management growth [4, 7, 8]. HSBC had paused share repurchases in October 2025 for about three quarters after its $14 billion acquisition of Hang Seng Bank [5, 7, 8].

HSBC maintained a targeted return on tangible equity (RoTE) of 17% with an annualised RoTE of 19.1% excluding notable items in Q2 2026 [6]. The next major update is expected with the bank’s third-quarter results later this year.