HSBC resumes buyback after big profit jump in first half

HSBC resumes buyback after big profit jump in first half HONG KONG: British Banking giant HSBC said on Tuesday (Aug 4) it would buy back up to US$1 billion of shares after a big jump in profits in the first half of 2026. The jump in profits was due to "growth in banking net interest income and higher fee and other income", HSBC said in its earnings report, adding that the profit in banking increased by US$1.4 billion. "HSBC is becoming the stronger bank we set out to build. We are executing our strategic priorities with pace, precision and discipline," CEO Georges Elhedery added in a statement. Profit attributable to shareholders rose around 27 per cent to US$14.6 billion in the six months to June, up from US$11.5 billion a year earlier. Pre-tax profit increased 23 per cent on-year to US$19.5 billion. In a sign of confidence, HSBC said it would proceed with a share buy-back of up to US$1 billion, with its board having approved a second interim dividend of US$0.10 per share. "We also intend to initiate a share buy-back of up to US$1 billion, which we expect to complete by our third quarter 2026 results announcement," it said in the filing. The bank said it was resuming repurchases after it paused them following its move to take full ownership of Hang Seng Bank. However, good news was partly offset by expected credit losses of US$2.4 billion - US$400 million higher than the first half of 2025. The bank said it lost US$400 million in a fraud case involving a British financial sponsor, and US$200 million in Hong Kong's commercial property sector. In recent weeks, HSBC has announced a series of deals to sell off business units, as under Elhedery, the lender has been carrying out a global restructuring to focus on its core markets. HSBC's share price has broken through its all-time high this month, with shares in Hong Kong trading above HK$160 each.