HSBC Holdings reported a 23% increase in pre-tax profit for the first half of 2026, totalling $19.5B, driven significantly by its wealth management arm.
A substantial portion of the group’s net new money was generated in Asia, underscoring the region’s importance to HSBC’s growth strategy in APAC.
Profits Rise, Credit and Operational Expenses
The rise in profit was supported by a net positive impact of $2.2B from notable items compared to the previous year. Increases in net interest income and higher fee income from wealth and wholesale transaction banking contributed to this growth. The firm acknowledged that these gains were tempered by unexpected credit losses and a planned rise in operational expenses.
HSBC Malta
Specific notable items included $300M in disposal losses related to the upcoming sale of HSBC’s Malta operations, along with restructuring costs also valued at $300M aimed at streamlining operations. Losses of $200M arose from the sale of its UK life insurance business.
Notable items in the preceding year included dilution and impairment losses associated with Bank of Communications Co and $600M in restructuring costs.
Equities Rise on Wealth Cash Flow
HSBC’s stock has increased by over 34% year-to-date, reflecting market confidence. Revenues climbed 11% to $37.7B, bolstered by robust growth in wealth-related income in its international wealth and premier banking segments.
Adjusted revenues, excluding notable items, rose by $2B to $38.2B year-on-year. Operating expenses increased by 2% to $17.4B over the same period.
HSBC Trading Returns
Looking towards future performance, HSBC remains optimistic about achieving a return on tangible equity target of 17% or greater over the coming years, alongside a goal for annual revenue growth to reach 5% by 2028.
In wealth management, HSBC reported stable wealth balances of $1.6T, with significant net new money of $64B in the first half, predominantly sourced from Asia.
Divestments and Sell-Offs in Retail Banking
In July 2026, the bank divested HSBC Life Singapore and completed a review of its Australian retail banking operations, which involved selling its home and personal loan portfolio.
HSBC is also set to sell its retail operation, HSBC Egypt, to Emirates NBD.
The firm has indicated a strategic focus on areas where it perceives competitive advantages and aims to reallocate approximately $1.8B from non-core activities to enhance its growth trajectory, including anticipated savings from the restructuring of Hang Seng Bank.
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