HSBC beats Q2 profit estimates, announces $1B buyback

HSBC posted first-half 2026 revenue of $37.74B and a pretax profit of $10.1B, exceeding the consensus estimate of $9.51B. Net interest income came in at $18.23B with a net interest margin of 1.61%, while expected credit loss charges were $2.35B. The CET1 ratio stood at 14.1%, slightly below the 14.2% estimate. The bank approved a second interim dividend of $0.10 per share and announced a share buyback of up to $1B.

For the full year 2026, HSBC sees banking net interest income of at least $46B and expects a return on average tangible equity of 17% or better, excluding notable items, with the same 17%+ target for 2027 and 2028. ECL charges are projected around 45bp of average gross customer loans for 2026. The bank remains on track for year-on-year operating expense growth, though it noted that pay increases would modestly raise cost growth in 2026. Management reaffirmed confidence in the targets set in February and continues to target annual revenue growth from 2026 to 2028 while managing the CET1 ratio within the 14%–14.5% medium-term range.