HSBC resumes share buybacks as quarterly profit soars to $10.1bn

{"text":[[{"start":10.309,"text":"HSBC’s pre-tax profits jumped 60 per cent to $10.1bn in the second quarter as the bank raised its target for cost savings and announced a new share buyback."}],[{"start":20.078,"text":"Revenues at Europe’s largest lender came in at $19.1bn in the three months to June 30, against a company-compiled analyst consensus of $18.6bn — up 16 per cent on the same period last year."}],[{"start":33.962,"text":"Profits were boosted by its wealth management and insurance business, including in its “second home market” of Hong Kong."}],[{"start":40.571,"text":"Pre-tax profit in the second quarter last year was damped by impairment losses relating to the bank’s stake in a Chinese lender, as well as restructuring costs of $500mn."}],[{"start":52.12,"text":"The “strong performance” would allow HSBC to “continue investing for growth while safeguarding [its] hallmark financial strength and cost discipline”, chief executive Georges Elhedery said."}],[{"start":61.16,"text":"“My first two years have been about building a stronger HSBC. The next phase is about putting more of those strengths to work,” he added."}],[{"start":71.33,"text":"Shares rose 0.2 per cent in afternoon trading in Hong Kong, bringing the increase this year to more than 35 per cent. The London-listed stock has had a similar trajectory, valuing the company at £274bn ($368bn)."}],[{"start":null,"text":"

"}],[{"start":85.4,"text":"HSBC retained its targets of a return on tangible equity of 17 per cent or higher for the next three years, and updated its banking net interest income outlook for 2026 from “around” to “at least” $46bn."}],[{"start":97.327,"text":"Wealth revenues rose 22 per cent in the second quarter from a year earlier to $2.8bn, while wholesale transaction banking revenues were up 7 per cent at $3bn."}],[{"start":109.98,"text":"The share buyback worth up to $1bn is the first since the bank last year announced a deal to take Hang Seng Bank private. It also planned to pay a second interim dividend of $0.10 per share."}],[{"start":120.042,"text":"The bank raised its target for savings from its restructuring from $1.5bn to $2bn annualised by the end of this year, and recognised an additional $200mn of costs in the quarter relating to Elhedery’s plans to simplify operations."}],[{"start":135.86,"text":"Expected credit losses for the quarter stood at $1.1bn, in line with the previous year and analyst expectations, with an additional $400mn set aside for risky loans related to the Hong Kong commercial real estate sector."}],[{"start":150.307,"text":"HSBC has continued its drive to simplify operations and had reduced managing director positions by 15 per cent between October 2024 and June 2026."}],[{"start":160.678,"text":"HSBC announced the sale of its $25.3bn Australian mortgage and personal loan book to a Blackstone-backed group last month and sold its Singapore insurance business to Allianz for $2.1bn — which the bank said would net it a pre-tax gain of $1.8bn."}],[{"start":179.86,"text":"Last month the FT also reported that HSBC had begun to market risky loans made by Hang Seng Bank to investors, in an early sign of how it intends to overhaul the Hong Kong lender after taking full control at the start of this year."}],[{"start":195,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1785827283_2069.mp3"}