HSBC (HSBA) Q2 2026 earnings summary

Executive summary

• Profit before tax rose 23% year-over-year to $19.5bn in 1H26, driven by higher net interest income, strong fee growth in Wealth and Wholesale Transaction Banking, and favorable notable items.

• Revenue increased 11% to $37.7bn, with notable items contributing $0.8bn and foreign currency translation adding $0.7bn; constant currency revenue excluding notable items grew 6%.

• All four core businesses delivered revenue growth and annualized ROTE of 17% or better, reflecting broad-based performance.

• Strategic priorities focused on simplification, customer-centricity, and sustainable growth, with significant progress in organizational streamlining and cost reallocation.

• Interim dividend of $0.10 per share declared, totaling $0.20 for H1, and a $1bn share buyback announced.

Financial highlights

• Profit before tax: $19.5bn (up 23% YoY); profit after tax: $15.3bn (up 23% YoY); revenue: $37.7bn (up 11% YoY).

• Net interest income: $18.2bn (up 8% YoY); net interest margin: 1.61% (up 4bps YoY).

• CET1 ratio: 14.1% (down from 14.9% at 2025 year-end), with strong organic capital generation and up to $1bn in share buybacks announced.

• Cost efficiency ratio improved to 46.2% from 49.9%, with annualized simplification saves of $1.7bn actioned.

• Customer deposits grew by $129bn YoY (+8%), and loans increased by $34bn since December 2025.

Outlook and guidance

• Targeting ROTE of 17% or better for 2026–2028, excluding notable items.

• Banking NII expected to be at least $46bn in 2026, with continued revenue growth targeted through 2028.

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

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

• Cost growth for 2026 guided at around 1% versus 2025, with $2bn in simplification saves by end-2026.