Europe’s largest lender posted earnings above forecasts driven by net interest income growth and one-off gains.
HSBC’s second-quarter pretax profit surged 60% year-on-year to $10.1 billion, surpassing the $9.51 billion consensus estimate. The bank attributed the gain to a 9% rise in net interest income and a $2.6 billion net favorable impact from notable items, including a $1.3 billion one-off gain.
Revenue climbed 16% to $19.1 billion, exceeding the $18.57 billion forecast. Operating expenses declined 2% due to lower restructuring costs, while net interest income reached $9.29 billion. The bank maintained its 17% return on tangible equity target, with an annualized 19.1% RoTE excluding items.
HSBC declared a 10-cent interim dividend and announced a $1 billion share buyback, expected to complete before third-quarter results.