LONDON (dpa-AFX) - HSBC Holdings PLC (HSBC, HSBA.L, HBC1.DE, HSHD.SI, 0005.HK), a major British lender and financial services provider, on Tuesday reported a rise in earnings and revenue for the first half of fiscal 2026.
In addition, the bank has announced that it plans to initiate a program to repurchase its shares for up to a maximum consideration of $1 billion, which is expected to begin shortly and complete by the third quarter results announcement.
For the six-month period to June 30, the lender reported a net income of $14.626 billion, or $0.85 per share, compared with $11.510 billion, or $0.65 per share in the same period last year.
Pre-tax income was $19.522 billion, higher than $15.810 billion a year ago. This increase mainly reflects a year-on-year net favorable impact of $2.2 billion from notable items and improved net interest income.
Excluding notable items, constant currency profit before tax moved up by $1.1 billion to $20.4 billion in the previous year.
Operating profit stood at $17.963 billion as against the prior year's $15.159 billion. Net operating income was $35.389 billion, up from $32.181 billion. Net operating income before change in expected credit losses and other credit impairment charges moved up to $37.742 billion from $34.122 billion a year ago.
Net fee income improved to $7.277 billion from the prior year's $6.643 billion. Net interest income was $18.233 billion, up from $16.821 billion a year ago, primarily driven by deposit balance growth and the benefit of reinvestment of the company's structural hedge at higher yields. There was also a positive impact from foreign exchange gain. Revenue increased to $37.7 billion from $34.1 billion last year.
The lending major will pay a second interim dividend of $0.10 per share on September 25.
Looking ahead, for fiscal 2026, HSBC now expects banking net interest income of at least $46 billion, compared with the earlier guidance of around $46 billion.
Further, HSBC said: 'We continue to target year-on-year growth in revenue from 2026 to 2028, rising to 5% growth in 2028 compared with 2027, excluding notable items and on a constant currency basis. We maintain our dividend payout ratio target basis of 50% in 2026, 2027, and 2028.'
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