HSBC reported a significant increase in its second-quarter pre-tax profit, reaching $10.1 billion, which is above the consensus estimate of $9.51 billion. This 60% year-on-year growth was supported by a 16% rise in revenue to $19.1 billion, bolstered by a one-off gain of $1.3 billion from notable items.
The bank's net interest income increased by 9% to $9.29 billion, reflecting improved lending conditions. Operating expenses decreased by 2%, attributed to lower restructuring costs, which helped maintain a targeted return on tangible equity of 17%.
Additionally, HSBC announced a second interim dividend of 10 cents per share and plans to initiate a $1 billion share buyback, expected to be completed by the third-quarter results announcement. These developments highlight HSBC's robust financial health and strategic initiatives to enhance shareholder value