Today’s need-to-know storiesHSBC first-half profit rises 23% to $19.5bn

HSBC has reported a 23 per cent rise in first-half pre-tax profit to $19.5bn compared with the same period last year, beating analyst forecasts, thanks to stronger lending and wealth management activity lifting revenue.

Revenue increased 11 per cent to $37.7bn, while income from the lender’s wealth management business grew 18 per cent as customer activity strengthened in Asia.

HSBC also announced a share buyback of up to $1bn and a second interim dividend of 10 cents per share, although the buyback was below market expectations of around $2.2bn, according to Citigroup analysts.   

Speaking during HSBC’s results presentation, chief executive Georges Elhedery said the group had attracted 640,000 new personal banking customers in Hong Kong during the first half of the year.

“Hong Kong remains front and centre in the growth of our wealth business in Asia,” he added.

HSBC said overall customer lending increased by $34bn from the end of 2025, while corporate and institutional banking generated about a third of its first-half profit. 

The lender also raised its 2026 guidance for banking net interest income to at least $46bn, compared with around $46bn previously. 

However, expected credit losses rose by $400mn to $2.4bn, partly because of charges linked to wholesale exposures and Hong Kong commercial property, while operating expenses increased 2 per cent to $17.4bn as technology spending and inflation pushed costs higher. 

HSBC’s shares were down 1.6 per cent in morning trading in London, having reached a record high earlier in the session.

FinCen imposes record $125mn penalty on UBS

The US Treasury’s Financial Crimes Enforcement Network has fined UBS $125mn over repeated failures in its anti-money laundering controls, representing the largest Bank Secrecy Act penalty ever imposed on a broker-dealer.

In a release on Monday, FinCen said UBS Financial Services, the Swiss bank’s US broker-dealer unit, admitted to wilfully failing to maintain an adequate AML programme and to failing to file suspicious activity reports. 

The regulator found that the business failed to carry out sufficient checks on high-risk clients linked to Russia and Latin America. In addition, the broker-dealer did not properly assess some customers’ sources of wealth or respond to reports alleging connections to corruption, fraud and money laundering, even after another UBS affiliate raised concerns.

FinCen said these failings contributed to hundreds of suspicious transactions not being reported promptly. The broker-dealer also failed to monitor more than 50,000 foreign currency transfers worth more than $10bn.

The breaches occurred between January 2019 and June 2023, after UBSFS had been fined $14.5mn for similar failings in 2018.

Under the settlement, UBSFS must review previously undetected transactions and undergo an independent assessment of its AML programme. FinCen said it may waive up to $15mn of the penalty if UBSFS completes the review and implements its recommendations.

“Today’s historic action against UBSFS should send a clear message that recidivist financial institutions will face severe repercussions,” said FinCen director Andrea Gacki.

Yacht broker sues Revolut’s Storonsky

Revolut founder Nik Storonsky is being sued for €17.5mn by luxury yacht broker Cecil Wright & Partners over the purchase of a €350mn superyacht, the FT reported.

The broker has filed a claim in London’s High Court alleging that Storonsky went “behind its back” to avoid paying commission.

Cecil Wright claims it found the yacht for Storonsky and helped bring about the sale, which entitled it to a 5 per cent fee, even though Storonsky ultimately bought the vessel directly from Canadian businessman Patrick Dovigi.

A spokesperson for Storonsky’s family office told the FT that the claim was “without merit and will be defended”.

“It’s very rare for brokers to find themselves in this situation and it’s the first time I have done so, but I feel strongly about it, hence am taking action,” founder Chris Cecil-Wright told the newspaper. 

The 102-metre yacht, built by German shipyard Lürssen, includes a glass-bottomed infinity pool, a beach club and a gym with a cold therapy chamber.

Rabobank announces €2bn tech investment

Rabobank plans to invest up to €2bn in data, technology and AI over the next three years as banks increase spending on digital infrastructure.

The Dutch lender said the investment would strengthen its data and IT systems, improve customer experience and expand its use of AI.

“AI, data and other new technologies will further transform the way we work,” said chief executive Stefaan Decraene. 

Rabobank reported a first-half net profit of €2.69bn on Tuesday, broadly unchanged from a year earlier. Income growth was offset by impairment charges rising to €562mn from €136mn, mainly because of several large provisions in its wholesale business.