HSBC Half-Year Profit Jumps 23% as UK Banks Cap a Bumper Season

HSBC reported a pre-tax profit of about $19.5 billion (£14.5 billion) for the first six months of 2026, up 23% from a year earlier and above the roughly $18.9 billion most analysts had expected. The results round off a strong reporting season for the UK's high-street lenders, with HSBC joining Lloyds, Barclays and NatWest in posting higher year-on-year profits and beating forecasts. Chief executive Georges Elhedery said UK growth needs strong banks, as the bumper earnings prompted renewed calls, including from the Trades Union Congress, for the government to consider raising taxes on bank profits. HSBC said it would launch a new share buyback of up to $1 billion. Profit growth was driven by higher net interest income and increased fee income, particularly from wealth management and banking services, partly offset by higher expected credit charges. Operating expenses rose on technology investment and inflation, though these were partly mitigated by cost-cutting that has stripped out about $1.5 billion ahead of schedule. Investors focused on capital returns and the outlook after a strong run in the bank's shares.