HSBC restarts buybacks after rates and wealth boost H1 profit

HSBC, Europe's largest bank, has announced a better-than-expected first-half profit, with pretax earnings rising 23% to $19.5 billion. This strong performance is attributed to the bank's focus on Asia and wealth management, which drove fee income growth alongside favorable interest rates. The lender has also resumed its share buybacks, with a plan to repurchase up to $1 billion worth of shares, following a pause last year when it took Hang Seng Bank private.

HSBC's Hong Kong-listed shares remained flat in trading after the earnings release. The bank's CEO, Georges Elhedery, has been streamlining the lender by exiting markets where it lacks scale, including the sale of its Singaporean insurance, Egyptian retail banking, and Australian mortgage businesses. Despite a recent wealth crackdown in China, HSBC's wealth revenue grew 18% year-over-year, driven by strong performance in Asian markets.