HSBC Holdings PLC

XMUN:HBC2

Strong quarter: HSBC said second-quarter momentum accelerated, with revenue up 7% to USD 19 billion, profit before tax up 13% to USD 10.3 billion, and return on tangible equity at 19.5%.

Guidance lifted: The bank raised full-year Banking NII guidance to at least USD 46 billion, citing stronger deposits and loans plus a favorable rate backdrop.

Capital returns: HSBC declared a USD 0.10 quarterly interim dividend and restarted buybacks with up to USD 1 billion after pausing them for three quarters.

Cost plan improved: Management increased targeted organizational simplification savings to USD 2 billion, up from USD 1.5 billion, and said the bank remains on track for around 1% cost growth in 2026.

Growth engine: All four businesses grew revenue and each delivered more than the group’s 17% return target, with especially strong performance in Wealth and Wholesale Transaction Banking.

Strategy unchanged: HSBC reiterated its long-term targets, including revenue growth rising to 5% by 2028 and 17%+ return on tangible equity, while emphasizing capital will first support growth before buybacks.

Credit watch: Credit costs were manageable overall, but HSBC flagged some pressure in Hong Kong commercial real estate, pockets of U.K. and Asia mid-market stress, and continued monitoring of Middle East exposures.