HSBC (HSBA) Q2 2026 Fixed Income earnings summary

Executive summary

• Revenue for 1H26 reached $38.2bn, up 6% year-on-year, with profit before tax of $20.4bn, also up 6% year-on-year, and annualized ROTE at 19.1%.

• Strategic execution included organizational simplification, digital asset expansion, AI deployment, and a focus on sustainable growth with $2bn in annualized cost saves targeted by end-2026.

• All global business segments delivered returns above 17% ROTE, with strong customer lending and deposit growth, especially in Hong Kong.

Financial highlights

• Banking net interest income for H1 was $22.9bn, up 5% year-on-year; full-year NII guidance upgraded to at least $46bn.

• Customer deposits grew 8% year-on-year to $1,828bn; customer loans increased 5% to $1,022bn.

• Wealth business fee and other income grew 21% year-on-year in Q2; net new money of $64bn in H1, $57bn from Asia.

• Annualized cost of risk was 47bps, with a $2.4bn ECL charge in H1.

• Operating expenses rose 2% to $17.4bn, reflecting higher technology investment and inflation, partly offset by cost reductions.

Outlook and guidance

• Full-year 2026 cost of risk guidance reiterated at around 45bps; revenue targeted to rise 5% year-on-year by 2028.

• Return on tangible equity targeted at 17% or better each year to 2028, excluding notable items.

• Dividend payout ratio set at 50% of EPS, excluding material notable items.

• CET1 ratio to be managed within 14–14.5% range.

• Regulatory changes in the UK expected to have immaterial impact; ongoing constructive engagement with regulators.