{"id":97138,"date":"2026-08-04T12:43:09","date_gmt":"2026-08-04T12:43:09","guid":{"rendered":"https:\/\/www.europesays.com\/britain\/97138\/"},"modified":"2026-08-04T12:43:09","modified_gmt":"2026-08-04T12:43:09","slug":"hsbc-restarts-buybacks-as-profits-surge","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/britain\/97138\/","title":{"rendered":"HSBC restarts buybacks as profits surge"},"content":{"rendered":"

HSBC (HSBA)<\/a> announced a new $1bn (\u00a3740mn) buyback \u2013 the first since a pause last October \u2013 after profits surged in the second quarter.<\/p>\n

Pre-tax profit was up 60 per cent to $10.1bn in the three months to 30 June compared with the same period last year following a 7 per cent rise in group revenue to $19bn. <\/p>\n

Banking net interest income (NII) rose by 7 per cent to $11.6bn, while the margin ticked up by four basis points to 1.61 per cent. A 21 per cent rise in wealth fees to $2.8bn helped the performance, as did a 7 per cent improvement in wholesale transaction banking fees to $3bn.<\/p>\n

Management nudged up its banking NII guidance for the full year to \u201cat least\u201d $46bn. It stuck with guidance for a return on tangible equity of at least 17 per cent in each year between 2026 and 2028.<\/p>\n

HSBA:LSE<\/p>\n

HSBC Holdings PLC<\/p>\n

20 days<\/p>\n

The bank had paused buybacks due to the capital implications of its buyout of Hang Seng Bank\u2019s remaining minority interests. The $13.7bn transaction, which privatised Hang Seng, completed in January.<\/p>\n

As a result, HSBC\u2019s common equity tier 1 (CET1) ratio was down by 0.8 percentage points from December to 14.1 per cent. But that was back in line with its medium-term target range of 14 to 14.5 per cent. <\/p>\n

Elsewhere, the bank upgraded its cost-saving target from $1.5bn to $2bn under chief executive Georges Elhedery\u2019s restructuring programme. At the half-year mark, $1.7bn of annualised savings had been recorded. Looking ahead, the cost impact is unclear from what management described as \u201caccelerating initiatives to support future growth\u201d.<\/p>\n

Expected credit losses (ECL) of $1.1bn in the second quarter were flat year on year. Management still expects an ECL charge of 45 basis points for 2026. <\/p>\n

It has been a busy couple of weeks for M&A. HSBC announced on 24 July that it had agreed to sell its life and health insurance business in Singapore to Allianz for $2.1bn. That was followed at the end of the month by the news that Blackstone would buy the bank\u2019s $25bn Australian home loans and personal loans portfolio. HSBC has since announced the disposal of its small Egyptian retail banking operations, and is conducting a strategic review of its retail and domestic SME businesses in Turkey. <\/p>\n

HSBC trades on two times price\/tangible book value for FY2027, which makes it the most expensive among the London-listed banks. Much to like, but with the shares up more than 70 per cent over the past year, it remains sensible to wait for a cheaper entry point. Hold. <\/p>\n

Last IC view: Hold, 1,364p, 25 Feb 2026<\/a><\/p>\n

HSBC (HSBA)\u00a0\u00a0\u00a0\u00a0ORD PRICE:1,567pMARKET VALUE:\u00a3269bnTOUCH:1,566.6-1,566.8p12-MONTH HIGH:1,610pLOW: 920pDIVIDEND YIELD:3.6%PE RATIO:15NET ASSET VALUE:1,144\u023cLEVERAGE:19Half-year to 30 JunNet operating income ($bn)Pre-tax profit ($bn)Earnings per share (\u023c)Dividend per share (\u023c)202532.215.865.020.0202635.419.585.020.0% change+10+23+31-Ex-div:13 AugPayment:25 Sep\u00a0\u00a31=$1.34<\/p>\n","protected":false},"excerpt":{"rendered":"HSBC (HSBA) announced a new $1bn (\u00a3740mn) buyback \u2013 the first since a pause last October \u2013 after…\n","protected":false},"author":2,"featured_media":97139,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[20667],"tags":[320,9881,21834,703,702],"class_list":["post-97138","post","type-post","status-publish","format-standard","has-post-thumbnail","category-hsbc","tag-ftse-100","tag-hsbc","tag-results-trading-updates","tag-standard-article","tag-stocks-shares"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/117037302054356838","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/97138","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=97138"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/97138\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/97139"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=97138"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=97138"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=97138"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}