HSBC Holdings (NYSE: HSBC) lifts 1H26 profit and plans $1B buyback
HSBC Holdings plc reported strong 1H26 results, with profit before tax rising 23% to $19.5bn and revenue up 11% to $37.7bn versus 1H25. Net interest income increased by $1.4bn and net interest margin improved to 1.61%, while fee and other income grew, particularly in Wealth and Wholesale Transaction Banking.
Credit costs rose to $2.4bn, or 0.47% of average customer loans, mainly from wholesale stage 3 charges and Hong Kong commercial real estate, while the cost efficiency ratio improved to 46.2% as operating expenses grew only 2%. Annualised return on average tangible equity reached 18.2%, or 19.1% excluding notable items. The CET1 ratio was 14.1%, within the stated 14% to 14.5% target range.
The Board declared total dividends of $0.20 per share in respect of 1H26 and approved a second interim dividend of $0.10 per share. HSBC also plans a share buy-back of up to $1bn and reaffirmed medium-term targets, including RoTE of at least 17% and a 50% dividend payout ratio target basis through 2028, and now expects 2026 banking net interest income of at least $46bn.
Positive
- Profitability strengthened: 1H26 profit before tax rose 23% to $19.5bn, revenue grew 11% to $37.7bn, and annualised RoTE reached 18.2% (19.1% excluding notable items).
- Capital returns increased: dividends in respect of 1H26 totalled $0.20 per share, with an additional $0.10 interim dividend approved and a new share buy-back of up to $1bn planned.
- Guidance and targets reaffirmed: management remains confident in achieving RoTE of 17% or better for 2026–2028, targets a 50% dividend payout ratio (target basis), and now expects 2026 banking NII of at least $46bn.
Negative
- None.
Key Figures
Profit before tax: 19,522 $m
Revenue: 37,742 $m
Return on average tangible equity: 18.2 %
+5 more
8 metrics
Profit before tax
19,522 $m
Reported profit before tax for 1H26, up 23% from $15,810m in 1H25
Revenue
37,742 $m
Net operating income before ECL for 1H26, 11% higher than 1H25
Return on average tangible equity
18.2 %
Annualised RoTE for 1H26; 19.1% excluding notable items
Net interest margin
1.61 %
Group net interest margin in 1H26, 4 bps higher than 1H25
CET1 capital ratio
14.1 %
Common equity tier 1 ratio at 30 June 2026, within 14%–14.5% target range
ECL as % of average gross loans
0.47 %
Annualised ECL ratio for 1H26 including held for sale loan balances
Dividend per ordinary share (period)
0.20 $
Dividend per ordinary share in respect of the half-year to 30 June 2026
Planned share buy-back
1 $bn
Intended share repurchase programme to be completed by 3Q26 results
Key Terms
return on average tangible equity, common equity tier 1 capital ratio, expected credit losses, structural hedge, +2 more
6 terms
return on average tangible equity financial
"Annualised return on average tangible equity (RoTE) was 18.2% in 1H26."
A measure of how much profit a company generates from the physical, measurable capital actually owned by shareholders, calculated as after‑tax profit available to owners divided by the average tangible equity over a period. It matters to investors because it strips out intangible items like goodwill and patents, giving a clearer picture of how efficiently the firm turns real, balance‑sheet capital into returns — like judging a farm by the crop yield per acre rather than including the value of a nearby trademark.
common equity tier 1 capital ratio financial
"Common equity tier 1 (CET1) capital ratio of 14.1% decreased by 0.8 percentage points."
A bank’s common equity tier 1 (CET1) capital ratio measures the size of its strongest loss-absorbing capital—mainly common shares and retained earnings—relative to the bank’s assets after adjusting those assets for how risky they are (riskier loans count more). Think of it as the safety cushion compared with the weight of risky business; investors use it to judge a bank’s ability to survive losses, meet rules, and sustain dividends or growth.
expected credit losses financial
"Expected credit losses and other credit impairment charges (ECL) were $2.4bn in 1H26."
Expected credit losses are an accounting estimate of how much a lender or company expects to lose when borrowers or customers don’t fully pay what they owe, combining how likely nonpayment is with how big the loss would be. Investors care because these estimates determine how much a firm must set aside from earnings as a reserve, directly affecting reported profits, balance-sheet strength and perceptions of credit risk—like setting aside a rainy-day fund for unpaid bills.
structural hedge financial
"Banking NII rose due to deposit growth and reinvestment of our structural hedge at higher yields."
held for sale financial
"Includes disposal losses on classification to held for sale of the business in Malta."
An asset or a group of assets classified as 'held for sale' is one the company intends to sell rather than keep using, and management has committed to that plan with an active effort to find a buyer. Investors care because these items are removed from ongoing operating results and valued differently, offering a clearer view of the business’s continuing performance—think of it like marking a piece of furniture for the garage sale rather than counting it as part of your regular household setup.
liquidity coverage ratio financial
"The average liquidity coverage ratio (LCR) was 134% at 30 June 2026."
The liquidity coverage ratio is a banking rule that measures whether a bank has enough high-quality, easy-to-sell assets to cover expected net cash outflows for 30 days. Think of it as a household’s emergency fund that must cover a month of bills; for investors, a higher ratio means the bank is better positioned to survive short-term stress, reducing the risk of fire sales, funding problems, or sudden capital needs that can hurt the share price.
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FAQ
How did HSBC (HSBC) perform financially in the first half of 2026?
HSBC reported 1H26 profit before tax of $19.5bn, up 23% from $15.8bn in 1H25, and profit after tax of $15.3bn. Revenue increased 11% to $37.7bn, driven by higher banking net interest income and strong Wealth and transaction banking fees.
What were HSBC (HSBC) key profitability and margin metrics in 1H26?
Annualised return on average tangible equity was 18.2%, or 19.1% excluding notable items, in 1H26. Net interest margin improved to 1.61% from 1.57% a year earlier, supported by deposit growth and reinvestment of the structural hedge at higher yields.
What dividends did HSBC (HSBC) declare and pay for 1H26?
Dividends in respect of 1H26 totalled $0.20 per ordinary share, matching 1H25. Cash dividends paid during the period were $0.55 per share. The Board also approved a second interim dividend of $0.10 per share, payable on 25 September 2026.
What capital and liquidity ratios did HSBC (HSBC) report at 30 June 2026?
At 30 June 2026, HSBC reported a CET1 ratio of 14.1%, total capital ratio of 19.7%, and leverage ratio of 4.9%. Average high-quality liquid assets were $713.7bn, and the average liquidity coverage ratio stood at 134%.
What guidance and medium-term targets has HSBC (HSBC) set?
HSBC targets RoTE of 17% or better for 2026–2028 (excluding notable items) and year-on-year revenue growth, reaching 5% in 2028 versus 2027. It maintains a 50% dividend payout ratio target basis and now expects 2026 banking NII of at least $46bn.
How did HSBC (HSBC) loans and deposits change in 1H26?
Customer lending balances rose by $34bn versus 31 December 2025, or $40bn on a constant currency basis, with growth across all segments. Customer accounts increased by $41bn, or $56bn on a constant currency basis, led by Corporate and Institutional Banking.
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the
month of August
HSBC Holdings plc
8
Canada Square, London E14 5HQ, England
(Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or
Form 40-F).
Form
20-F X Form 40-F
HSBC Holdings plc
2026 Interim results
|
|
Georges Elhedery, Group CEO, said:
"HSBC is becoming the stronger bank we set out to build. We are
executing our strategic priorities with pace, precision and
discipline. This is allowing our four businesses to focus on their
core strengths, grow, work together more effectively and deepen
customer relationships. The result is a bank capable of achieving
more."
|
|
Financial performance in 1H26
- Profit
before tax increased by $3.7bn or 23% to $19.5bn compared with
1H25. The increase
primarily reflected a year-on-year net favourable impact of $2.2bn
from notable items. The increase also reflected growth in banking
net interest income ('banking NII') and higher fee and other
income, primarily in Wealth and Wholesale Transaction Banking
('WTB'). This was partly offset by higher expected credit losses
and other credit impairment charges ('ECL'), and a planned increase
in operating expenses. Profit after tax of $15.3bn was
$2.9bn or 23% higher compared with 1H25.
-
In 1H26, notable items included disposal losses of
$0.3bn recognised on classification to held for sale associated
with the planned sale of our business in Malta, restructuring costs
associated with our organisational simplification of $0.3bn, and
losses of $0.2bn from the recycling of foreign currency translation
reserves following the completion of the sale of our UK life
insurance business. In 1H25, notable items included dilution and
impairment losses of $2.1bn related to our associate Bank of
Communications Co., Limited ('BoCom'), and restructuring costs
associated with our organisational simplification of
$0.6bn.
- Constant
currency profit before tax excluding notable items increased by
$1.1bn to $20.4bn compared with 1H25.
- Revenue
increased by $3.6bn or 11% to $37.7bn compared with
1H25, including a
year-on-year net favourable impact of notable items of $0.8bn and
the favourable impact of foreign currency translation differences
of $0.7bn. The remaining increase reflected higher banking NII, and
strong growth in Wealth fee and other income in our International
Wealth and Premier Banking ('IWPB') and Hong Kong business
segments, supported by higher customer activity. The increase also
included a one-off property asset disposal gain of
$0.2bn. Constant currency revenue
excluding notable items rose by $2.0bn to $38.2bn compared with
1H25.
- Net
interest income ('NII') increased by $1.4bn compared with
1H25, primarily driven by
deposit balance growth and the benefit of reinvestment of our
structural hedge at higher yields. There was also a favourable
impact from foreign currency translation differences of $0.4bn,
partly offset by the impact of an adverse $0.1bn one-off item. The
impact of lower market interest rates on the funding deployed to
the trading book was broadly offset by higher trading
balances. Banking NII, which excludes the
funding costs associated with the trading book and insurance NII,
increased by $1.6bn to $22.9bn.
- Net interest margin ('NIM') of
1.61% was 4 basis points ('bps') higher compared with
1H25, mainly due to the
impact from foreign currency translation differences and the
benefit of our structural hedge, partly offset by lower market
interest rates.
- ECL of $2.4bn were $0.4bn
higher than in 1H25. The
1H26 charge primarily reflected stage 3 charges on wholesale
exposures, including a $0.4bn fraud-related, secondary,
securitisation exposure with a financial sponsor in the UK in our
Corporate and Institutional Banking ('CIB') business, and $0.2bn
related to the Hong Kong commercial real estate ('CRE') sector.
1H26 also included allowances to reflect uncertainty due to the
ongoing conflict in the Middle East. ECL in 1H25 included charges
related to the Hong Kong CRE sector of $0.5bn, as well as allowance
increases relating to geopolitical tensions and higher trade
tariffs.
- Operating expenses of $17.4bn
were $0.4bn or 2% higher than in 1H25, including an adverse impact from foreign
currency translation differences of $0.4bn. The increase was driven
by higher planned spend and investment in technology, and the
impact of inflation. These increases were partly mitigated by cost
reductions from our organisational simplification and a
year-on-year favourable impact from notable
items.
- Target basis operating expenses
were $0.4bn or 2% higher than in 1H25, including the impact of inflation and higher
planned spend and investment in technology, partly offset by cost
reductions from our organisational
simplification.
- Customer
lending balances increased by $34bn compared with 31 December
2025, including adverse
foreign currency translation differences of $6bn. On a constant
currency basis, lending balances increased by $40bn, reflecting
growth across all our business segments, particularly in our main
entity in Hong Kong. This was partly offset by the classification
to held for sale of loans from the planned sale of our business in
Malta.
- Customer
accounts increased by $41bn compared with 31 December
2025, including adverse
foreign currency translation differences of $15bn. On a constant
currency basis, customer accounts increased by $56bn, primarily
reflecting growth in our CIB business, partly offset by the
classification to held for sale of deposits from the planned sale
of our business in Malta and our retail banking business in
Indonesia.
- Common
equity tier 1 ('CET1') capital ratio of 14.1% decreased by 0.8
percentage points compared with 31 December
2025, reflecting the
impact of the privatisation of Hang Seng Bank Limited ('Hang Seng
Bank'), dividends and an increase in risk-weighted assets ('RWAs'),
partly offset by regulatory profit.
- The Board has approved
a second interim dividend of
$0.10 per share. We
also intend to initiate a share
buy-back of up to $1bn, which we expect to complete by our third
quarter 2026 results announcement.
Financial
performance in 2Q26
- Profit
before tax increased by $3.8bn or 60% to $10.1bn compared with
2Q25, primarily reflecting
a net favourable impact from notable items of $2.6bn. The increase
also reflected growth in banking NII, and higher fee and other
income primarily in Wealth and WTB. Profit after tax increased by
$3.1bn or 63% to $7.9bn compared with 2Q25.
-
In 2Q26, notable items included restructuring costs
associated with our organisational simplification of $0.2bn. In
2Q25, notable items included dilution and impairment losses of
$2.1bn related to our associate BoCom, and restructuring costs
associated with our organisational simplification of
$0.5bn.
- Revenue
increased by $2.6bn to $19.1bn compared with
2Q25, including a
year-on-year net favourable impact of $1.3bn from notable items.
The increase also reflected a rise in banking NII, and strong
growth in Wealth fee and other income in our IWPB and Hong Kong
business segments, supported by higher customer activity. Revenue
grew in Debt and Equity Markets and WTB in our CIB
business. Constant currency revenue
excluding notable items rose by $1.3bn to
$19.0bn.
- ECL
of $1.1bn were stable compared with 2Q25. The charge in 2Q26 primarily comprised stage
3 charges, including $0.2bn related to the Hong Kong CRE sector.
The ECL charge in 2Q25 included charges of $0.4bn related to the
Hong Kong CRE sector.
- Operating
expenses of $8.7bn were $0.2bn or 2% lower compared with
2Q25, reflecting lower
restructuring costs together with the resultant cost reduction
benefits from our organisational simplification, and the phasing of
performance-related pay accrual relative to 2Q25. These reductions
were partly offset by higher planned spend and investment in
technology, the impact of inflation and an adverse impact from
foreign currency translation differences of
$0.1bn.
- Customer
lending increased by $20bn compared with 1Q26 on a reported
basis, reflecting growth
across all segments.
- Customer
accounts increased by $46bn compared with 1Q26 on a reported
basis, primarily
reflecting growth in our CIB business, notably in Hong Kong, partly
offset by the classification of deposits from the planned sale of
our retail banking business in Indonesia to held for
sale.
|
|
Outlook
Group financial targets
- We remain confident in
achieving the targets we set out in February 2026, including
a return on average tangible
equity ('RoTE') of 17% or better for 2026, 2027 and 2028, excluding
notable items.
- 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. Our target basis payout ratio is calculated
as a percentage of earnings per share ('EPS') excluding material
notable items and related impacts.
In respect of 2026
- We now
expect banking NII of at least $46bn
in 2026, reflecting a
continued favourable interest rate outlook, while recognising the
outlook remains volatile and uncertain. We had previously provided
banking NII guidance of around $46bn for 2026.
- We continue to expect
an ECL
charge as a percentage of average gross customer loans to be around
45bps (including held for
sale loan balances) for 2026, reflecting ongoing uncertainty in the
outlook. Over the medium term, we retain our planning range of
30-40bps.
- The Group remains on track to
deliver year-on-year growth in operating expenses of approximately
1% in 2026 on a target basis. Should strong business performance continue,
we may consider additional performance-related pay which would
increase 2026 target basis cost growth modestly. Our target basis
operating expenses measure excludes notable items and includes the
impact of simplification-related saves associated with our
announced strategic reorganisation.
- We intend to continue to
manage the CET1 capital ratio within our
medium-term target range of 14% to 14.5%.
Ñ Our targets and expectations
reflect our current outlook for the global macroeconomic
environment and market-dependent factors, such as market-implied
interest rates (as of mid-July 2026) and rates of foreign exchange,
as well as customer behaviour and activity
levels.
Ñ We do not reconcile our forward
guidance on RoTE excluding notable items, target basis operating
expenses, dividend payout ratio target basis or banking NII to
their equivalent reported measures.
Ñ For further details, please refer
to the following pages of our Interim Report 2026: pages 41 to 44
for a further explanation of RoTE excluding notable items, banking
NII, target basis operating expenses and dividend payout ratio
target basis. For further information on our CET1 ratio, see page
70.
Key financial metrics
|
|
Half-year to
|
|
|
|
30 Jun 2026
|
30 Jun
2025
|
|
Reported results
|
|
|
|
Profit before tax ($m)
|
19,522
|
15,810
|
|
Profit after tax ($m)
|
15,321
|
12,441
|
|
Net
operating income before change in expected credit losses and other
credit impairment charges ('revenue') ($m)
|
37,742
|
34,122
|
|
Cost efficiency ratio (%)
|
46.2
|
49.9
|
|
Net interest margin (%)
|
1.61
|
1.57
|
|
Basic earnings per share ($)
|
0.85
|
0.65
|
|
Diluted earnings per share ($)
|
0.85
|
0.65
|
|
Dividend per ordinary share (in respect of the period)
($)
|
0.20
|
0.20
|
|
Alternative performance measures
|
|
|
|
Constant currency profit before tax ($m)
|
19,522
|
16,001
|
|
Constant currency revenue ($m)
|
37,742
|
34,812
|
|
Constant currency banking net interest income ($m)
|
22,896
|
21,820
|
|
Constant currency cost efficiency ratio (%)
|
46.2
|
50.1
|
|
Constant currency profit before tax excluding notable items
($m)
|
20,395
|
19,267
|
|
Constant currency revenue excluding notable items ($m)
|
38,168
|
36,149
|
|
Constant currency profit before tax excluding notable items and
strategic transactions ($m)
|
20,395
|
19,072
|
|
Constant currency revenue excluding notable items and strategic
transactions ($m)
|
38,168
|
35,805
|
|
Expected credit losses and other credit impairment charges
(annualised) as % of average gross loans and advances to customers,
including held for sale (%)
|
0.47
|
0.42
|
|
Basic
earnings per share excluding material notable items and related
impacts ($)
|
0.88
|
0.78
|
|
Return on average ordinary shareholders' equity (annualised)
(%)
|
16.9
|
13.7
|
|
Return on average tangible equity (annualised) (%)
|
18.2
|
14.7
|
|
Return
on average tangible equity excluding notable items (annualised)
(%)
|
19.1
|
18.2
|
|
Target
basis operating expenses ($m)
|
16,979
|
16,607
|
|
|
|
|
|
|
At
|
|
|
|
30 Jun 2026
|
31 Dec
2025
|
|
Balance sheet
|
|
|
|
Total assets ($m)
|
3,438,161
|
3,233,034
|
|
Net loans and advances to customers ($m)
|
1,022,105
|
988,399
|
|
Constant currency net loans and advances to customers
($m)
|
1,022,105
|
981,950
|
|
Customer accounts ($m)
|
1,827,703
|
1,786,828
|
|
Constant currency customer accounts ($m)
|
1,827,703
|
1,771,972
|
|
Average interest-earning assets, year to date ($m)
|
2,280,838
|
2,190,078
|
|
Loans and advances to customers as % of customer accounts
(%)
|
55.9
|
55.3
|
|
Total shareholders' equity ($m)
|
196,682
|
198,225
|
|
Tangible ordinary shareholders' equity ($m)
|
160,652
|
165,153
|
|
Net asset value per ordinary share at period end ($)
|
10.08
|
10.36
|
|
Tangible net asset value per ordinary share at period end
($)
|
9.36
|
9.64
|
|
Capital, leverage and liquidity
|
|
|
|
Common
equity tier 1 capital ratio (%)1,2
|
14.1
|
14.9
|
|
Risk-weighted
assets ($m)1,2
|
906,417
|
888,647
|
|
Total
capital ratio (%)1,2
|
19.7
|
20.5
|
|
Leverage
ratio (%)1,2
|
4.9
|
5.3
|
|
High-quality
liquid assets (liquidity value, average) ($m)1,2,3
|
713,669
|
702,123
|
|
Liquidity
coverage ratio (average) (%)1,2,3
|
134
|
137
|
|
Share count
|
|
|
|
Period
end basic number of $0.50 ordinary shares outstanding, after
deducting own shares held (millions)
|
17,164
|
17,140
|
|
Period
end basic number of $0.50 ordinary shares outstanding and dilutive
potential ordinary shares, after deducting own shares held
(millions)
|
17,267
|
17,276
|
|
Average
basic number of $0.50 ordinary shares outstanding, after deducting
own shares held (millions)
|
17,146
|
17,427
|
|
|
|
|
Ñ For reconciliations of our
reported results to a constant currency basis, including lists of
notable items, see page 29 of the Interim Report 2026. For detail
on other alternative performance measures, including definitions
and calculations, see 'Reconciliation of alternative performance
measures' on page 41 of the Interim Report
2026.
1
Regulatory ratios and requirements are based on the Prudential
rules in force at the time.
2
Regulatory numbers and ratios are as presented at the date of
reporting. Small changes may exist between these numbers and ratios
and those subsequently submitted in regulatory filings. Where
differences are significant, we may restate in subsequent
periods.
3
The liquidity coverage ratio is based on the average value of the
preceding 12 months.
Highlights
|
|
Half-year to
|
|
|
|
30 Jun 2026
|
30 Jun
2025
|
|
|
$m
|
$m
|
|
Reported
|
|
|
|
Revenue1,2
|
37,742
|
34,122
|
|
Change in expected credit losses and other credit impairment
charges
|
(2,353)
|
(1,941)
|
|
Operating expenses
|
(17,426)
|
(17,022)
|
|
Share
of profit in associates and joint ventures less
impairment2
|
1,559
|
651
|
|
Profit before tax
|
19,522
|
15,810
|
|
Tax
charge
|
(4,201)
|
(3,369)
|
|
Profit after tax
|
15,321
|
12,441
|
|
Constant currency3
|
|
|
|
Revenue1,2
|
37,742
|
34,812
|
|
Change in expected credit losses and other credit impairment
charges
|
(2,353)
|
(2,015)
|
|
Operating expenses
|
(17,426)
|
(17,451)
|
|
Share
of profit in associates and joint ventures less
impairment2
|
1,559
|
655
|
|
Profit before tax
|
19,522
|
16,001
|
|
Tax
charge
|
(4,201)
|
(3,428)
|
|
Profit after tax
|
15,321
|
12,573
|
|
|
|
|
|
Notable items
|
|
|
|
Revenue
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs1
|
(426)
|
(139)
|
|
Dilution
loss of interest in BoCom associate2
|
-
|
(1,136)
|
|
Operating expenses
|
|
|
|
Disposals,
wind-downs, acquisitions and related costs
|
(129)
|
(227)
|
|
Restructuring
and other related costs4
|
(318)
|
(616)
|
|
Impairment
loss of interest in BoCom associate2
|
-
|
(1,000)
|
|
Tax
|
|
|
|
Tax
credit on notable items
|
85
|
379
|
1
The amount in 1H26 includes $0.2bn from the recycling of foreign
currency translation reserve losses arising on completion of the
sale of our UK life insurance business, HSBC Life (UK) Limited, and
$0.3bn of disposal losses recognised upon the 'held for sale'
classification of HSBC Continental Europe's shareholding in HSBC
Bank Malta p.l.c. The amount in 1H25 includes a $0.1bn
mark-to-market gain on interest rate hedging of the portfolio of
retained loans post sale of our retail banking operations in France
and a $0.1bn fair value loss on Grupo Financiero Galicia's
('Galicia') American Depositary Receipts ('ADRs') received as
purchase consideration from the sale of our business in Argentina,
which were disposed of in 2Q25.
2
Amounts in 1H25 in 'Revenue' and 'Dilution loss of interest in
BoCom associate' include a loss of $1.1bn inclusive of reserves
recycling as a result of the dilution of our shareholding in BoCom.
We have also recognised a $1.0bn impairment loss following an
impairment test on the carrying value of the Group's investment in
BoCom in 'Share of profit in associates and joint ventures less
impairment' and 'Impairment loss of interest in BoCom
associate'.
3
Constant currency performance is computed by adjusting reported
results of comparative periods for the effects of foreign currency
translation differences, which distort period-on-period
comparisons.
4
Amounts relate to restructuring provisions recognised in 2025 and
2026.
Group CEO's shareholder letter
Dear fellow shareholders,
HSBC is becoming the stronger bank we set out to build. We are
executing our strategic priorities with pace, precision and
discipline. This is allowing our four businesses to focus on their
core strengths, grow, work together more effectively and deepen
customer relationships. The result is a bank capable of achieving
more. The first half of 2026 shows what a stronger HSBC can
achieve.
Performance with discipline
On a reported basis, profit before tax was $19.5bn, up 23% compared
with 1H25. Revenue grew 11% to $37.7bn. Annualised RoTE was 18.2%,
or 19.1% excluding notable items.
Our deposit franchise grew by $129bn on a constant currency basis,
including held-for-sale balances, over the last year. We are also
seeing encouraging growth in loans, particularly in Hong Kong and
the UK.
We also grew fee and other income. Wholesale Transaction Banking
increased by 4% on a constant currency basis. As the world's trade
bank, this resilient growth shows the central role we are playing
as businesses adapt to new patterns of trade and investment. Wealth
grew by 18% on a constant currency basis, reflecting our
market-leading Asia franchise.
We delivered strong returns to our shareholders. Our 18.2%
annualised RoTE reflects a strong performance. We are paying
another 10 cents per share quarterly interim dividend. We have also
resumed share buy-backs (up to $1bn), three quarters after we
paused them following the Hang Seng Bank privatisation
announcement.
Our strong performance in the first half gives us the capacity to
continue investing for growth while safeguarding the hallmark
financial strength and cost discipline that our customers and
shareholders expect.
Compounding our strengths
HSBC creates greater value when more of our capabilities work
together for our customers. That is why over the past two years we
have sharpened our focus, simplified the organisation and are
directing investment towards the businesses and markets where HSBC
is strongest.
As recent uncertainty has reshaped patterns of trade and
investment, we have seen that our customers are adapting the way
they do business. New networks of trade, investment and growth are
emerging across the global economy.
As they do, our customers increasingly need a banking partner that
can connect financing, payments, markets and wealth seamlessly
across borders, ensuring they remain resilient and agile enough to
adapt to fast-changing circumstances.
We see this every day. A manufacturer reshaping its supply chain.
An entrepreneur expanding into a new market. An investor allocating
capital across regions.
The better we connect HSBC, the more value we can create. Better
outcomes deepen relationships. Deeper relationships create more
opportunities to support our customers' ambitions and compound
value over time.
Connecting the enterprise
In a more complex world, our customers need more of HSBC working
together on their behalf. We are making that easier.
HSBC Access is one example. It brings together the capabilities of
our Private Bank, Innovation Banking and Corporate and
Institutional Banking to give eligible customers access to a
broader range of investment opportunities through a single
relationship.
More broadly, shared capabilities are helping successful ideas to
move faster across businesses and markets. Our simplification
actions are also creating clearer accountability and enabling
quicker decisions.
For customers, that means more relevant solutions and easier access
to our network and expertise. For colleagues, it means greater
clarity and more time to focus on customers. For shareholders, it
means more opportunities for focused, sustainable
growth.
The more effectively HSBC works together, the more we can
achieve.
Innovation at scale
Innovation creates value when it moves from possibility to
practical use.
Artificial intelligence will play an increasingly important role in
how we personalise our services for customers and run the bank. We
are equipping colleagues with tools that amplify their expertise,
improve decisions and reduce complexity. We are also strengthening
the data, technology and controls needed to deploy these
capabilities safely and at scale.
We are applying the same ambition to the next generation of
financial infrastructure. This year, the UK Government selected
HSBC to provide the technology for its first digital government
bond. It shows that innovation developed inside HSBC can help shape
the infrastructure of the market itself.
We also expanded our tokenised deposits services into the US and
the UAE, taking a capability first developed in Asia to six markets
across our international network. This enables customers to move
money frictionlessly across borders in real time, 24 hours a day,
seven days a week.
During the first half, HSBC was also granted a stablecoin issuer
licence in Hong Kong, becoming one of the first banks able to issue
stablecoins under the new regulatory framework. We plan to issue in
the second half of the year.
These are different technologies, but they reflect the same
discipline: identify a real need, demonstrate the value and scale
what works.
Building for tomorrow
My first two years have been about building a stronger HSBC. The
next phase is about putting more of those strengths to
work.
The completion of the Hang Seng Bank privatisation is one example
of that. It brings together the strengths of two iconic banks for
the benefit of customers and shareholders.
We begin this next phase knowing where HSBC is strongest, where we
should invest and where we can create the greatest
value.
Our intention is to grow more consistently by compounding those
strengths. To do this, we will continue to invest with discipline
in our people, technology and international network. These
investments will help us deepen customer relationships, strengthen
our competitive position and support future growth. By doing so, we
will unlock more of HSBC's potential.
Finally, none of the progress described in this report would be
possible without the skill, judgement and dedication of our
colleagues around the world. Every day, they earn the trust our
customers place in HSBC and bring our strategy to life. I would
like to thank them for everything they do. I would also like to
thank our customers for their trust and our shareholders for their
continued support.
Georges Elhedery
Group CEO
4 August 2026
Financial summary
|
|
Half-year to
|
|||||
|
|
30 Jun 2026
|
30 Jun
2025
|
|
|||
|
|
$m
|
$m
|
|
|||
|
For the period
|
|
|
|
|||
|
Profit before tax
|
19,522
|
|
15,810
|
|
|
|
|
Profit attributable to:
|
|
|
|
|||
|
- ordinary shareholders of the parent company
|
14,626
|
|
11,510
|
|
|
|
|
Dividends
on ordinary shares1
|
9,416
|
|
8,147
|
|
|
|
|
At the period end
|
|
|
|
|||
|
Total shareholders' equity
|
196,682
|
|
192,554
|
|
|
|
|
Total regulatory capital
|
178,776
|
|
178,496
|
|
|
|
|
Customer accounts
|
1,827,703
|
|
1,718,604
|
|
|
|
|
Total assets
|
3,438,161
|
|
3,214,371
|
|
|
|
|
Risk-weighted assets
|
906,417
|
|
886,860
|
|
|
|
|
Per ordinary share
|
$
|
$
|
|
|||
|
Basic earnings
|
0.85
|
|
0.65
|
|
|
|
|
Dividend
per ordinary share (paid in the period)1
|
0.55
|
|
0.46
|
|
|
|
|
Net
asset value2
|
10.08
|
9.88
|
|
|
|
|
1 The
$0.55 dividend paid during the period consisted of a fourth interim
dividend of $0.45 per ordinary share in respect of the financial
year ended 31 December 2025 paid in April 2026 and a first
interim dividend of $0.10 per ordinary share in respect of the
financial year ending 31 December 2026 paid in June
2026.
2
The definition of net asset value per ordinary share is total
shareholders' equity, less non-cumulative preference shares and
capital securities, divided by the basic number of ordinary shares
in issue, excluding own shares held by the parent company,
including those purchased and held in treasury.
|
|
Distribution of results by business segments1
|
Constant currency profit before tax
|
|||||||||||
|
|
Half-year to
|
||||||||||
|
|
30 Jun 2026
|
30 Jun
2025
|
|
||||||||
|
|
$m
|
%
|
$m
|
%
|
|
|
|||||
|
Hong Kong
|
5,138
|
|
26.3
|
|
4,511
|
|
28.2
|
|
|
|
|
|
UK
|
3,332
|
|
17.1
|
|
3,229
|
|
20.2
|
|
|
|
|
|
Corporate and Institutional Banking
|
7,250
|
|
37.1
|
|
6,805
|
|
42.5
|
|
|
|
|
|
International Wealth and Premier Banking
|
2,616
|
|
13.4
|
|
2,136
|
|
13.3
|
|
|
|
|
|
Corporate
Centre
|
1,186
|
|
6.1
|
|
(680
|
)
|
(4.2
|
)
|
|
|
|
|
Profit before tax
|
19,522
|
|
100.0
|
|
16,001
|
|
100.0
|
|
|
|
|
1
Effective 1 January 2026, we transferred certain clients, primarily
in Hong Kong and the UK, to the CIB segment to better meet their
needs. This transfer does not change the Group's reportable
segments. Comparative periods have been re-presented accordingly.
The re-presentation has no impact on the Group's consolidated
financial results or financial position.
|
|
Distribution of results by legal entity
|
Reported profit/(loss) before tax
|
|||||||||||||
|
|
Half-year to
|
||||||||||||
|
|
30 Jun 2026
|
30 Jun
2025
|
|
||||||||||
|
|
$m
|
%
|
$m
|
|
%
|
|
|
|
|||||
|
HSBC UK Bank plc
|
3,900
|
|
20.0
|
|
3,618
|
|
|
22.9
|
|
|
|
|
|
|
HSBC Bank plc
|
1,174
|
|
6.0
|
|
1,493
|
|
|
9.4
|
|
|
|
|
|
|
The Hongkong and Shanghai Banking Corporation Limited
|
12,897
|
|
66.1
|
|
9,384
|
|
|
59.4
|
|
|
|
|
|
|
HSBC Bank Middle East Limited
|
474
|
|
2.4
|
|
568
|
|
|
3.6
|
|
|
|
|
|
|
HSBC North America Holdings Inc.
|
935
|
|
4.8
|
|
490
|
|
|
3.1
|
|
|
|
|
|
|
Grupo Financiero HSBC, S.A. de C.V.
|
405
|
|
2.1
|
|
330
|
|
|
2.1
|
|
|
|
|
|
|
Other
trading entities1
|
964
|
|
4.9
|
|
817
|
|
|
5.2
|
|
|
|
|
|
|
Holding companies, shared service centres and intra-Group
eliminations
|
(1,227
|
)
|
(6.3
|
)
|
(890
|
)
|
|
(5.7
|
)
|
|
|
|
|
|
Profit before tax
|
19,522
|
|
100.0
|
|
15,810
|
|
|
100.0
|
|
|
|
|
|
1
Other trading entities includes the results of entities located in
Türkiye, Egypt and Saudi Arabia (including our share of the
results of Saudi Awwal Bank ('SAB')) which do not consolidate into
HSBC Bank Middle East Limited. These entities had an aggregated
impact on the Group's reported profit before tax of $0.7bn (1H25:
$0.8bn).
|
HSBC constant currency profit before tax and balance sheet
data
|
|||||||||||||
|
|
Half-year to 30 Jun 2026
|
|
|||||||||||
|
|
Hong
Kong
|
UK
|
CIB
|
IWPB
|
Corporate
Centre
|
Total
|
|
||||||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
||||||
|
Net operating income/(expense) before change in expected credit
losses and other credit impairment charges
|
8,132
|
|
6,530
|
|
15,609
|
|
7,739
|
|
(268
|
)
|
37,742
|
|
|
|
- external
|
5,179
|
|
7,066
|
|
20,942
|
|
7,086
|
|
(2,531
|
)
|
37,742
|
|
|
|
- inter-segment
|
2,953
|
|
(536
|
)
|
(5,333
|
)
|
653
|
|
2,263
|
|
-
|
|
|
|
- of
which: net interest income/(expense)1
|
5,975
|
|
5,682
|
|
8,023
|
|
3,585
|
|
(5,032
|
)
|
18,233
|
|
|
|
Change
in expected credit losses and other credit impairment
charges
|
(540
|
)
|
(505
|
)
|
(894
|
)
|
(413
|
)
|
(1
|
)
|
(2,353
|
)
|
|
|
Net operating income/(expense)
|
7,592
|
|
6,025
|
|
14,715
|
|
7,326
|
|
(269
|
)
|
35,389
|
|
|
|
Total operating expenses
|
(2,454
|
)
|
(2,693
|
)
|
(7,465
|
)
|
(4,727
|
)
|
(87
|
)
|
(17,426
|
)
|
|
|
Operating profit/(loss)
|
5,138
|
|
3,332
|
|
7,250
|
|
2,599
|
|
(356
|
)
|
17,963
|
|
|
|
Share of profit in associates and joint ventures less
impairment
|
-
|
|
-
|
|
-
|
|
17
|
|
1,542
|
|
1,559
|
|
|
|
Constant currency profit/(loss) before tax
|
5,138
|
|
3,332
|
|
7,250
|
|
2,616
|
|
1,186
|
|
19,522
|
|
|
|
|
%
|
%
|
%
|
%
|
%
|
%
|
|
||||||
|
Share
of HSBC's constant currency profit/(loss) before tax
|
26.3
|
|
17.1
|
|
37.1
|
|
13.4
|
|
6.1
|
|
100.0
|
|
|
|
Constant currency cost efficiency ratio
|
30.2
|
|
41.2
|
|
47.8
|
|
61.1
|
|
(32.5
|
)
|
46.2
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
Constant currency balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|
||||||
|
Loans and advances to customers (net)
|
230,495
|
|
306,175
|
|
331,512
|
|
153,763
|
|
160
|
|
1,022,105
|
|
|
|
Interests in associates and joint ventures
|
-
|
|
-
|
|
82
|
|
512
|
|
30,739
|
|
31,333
|
|
|
|
Total external assets
|
450,796
|
|
449,769
|
|
1,970,104
|
|
439,388
|
|
128,104
|
|
3,438,161
|
|
|
|
Customer accounts
|
536,808
|
|
348,342
|
|
669,711
|
|
272,646
|
|
196
|
|
1,827,703
|
|
|
|
Constant currency risk-weighted assets
|
140,039
|
|
156,502
|
|
426,317
|
|
89,263
|
|
94,296
|
|
906,417
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Half-year to 30 Jun 2025
|
|||||||||||
|
Net operating income before change in expected credit losses and
other credit impairment charges2
|
7,666
|
|
6,241
|
|
14,819
|
|
7,284
|
|
(1,198
|
)
|
34,812
|
|
|
- external
|
4,865
|
|
6,772
|
|
20,356
|
|
6,226
|
|
(3,407
|
)
|
34,812
|
|
|
- inter-segment
|
2,801
|
|
(531
|
)
|
(5,537
|
)
|
1,058
|
|
2,209
|
|
-
|
|
|
- of which: net interest income/(expense)1
|
5,724
|
|
5,353
|
|
7,458
|
|
3,848
|
|
(5,140
|
)
|
17,243
|
|
|
Change in expected credit losses and other credit impairment
charges
|
(857
|
)
|
(340
|
)
|
(313
|
)
|
(503
|
)
|
(2
|
)
|
(2,015
|
)
|
|
Net operating income
|
6,809
|
|
5,901
|
|
14,506
|
|
6,781
|
|
(1,200
|
)
|
32,797
|
|
|
Total operating expenses
|
(2,298
|
)
|
(2,672
|
)
|
(7,701
|
)
|
(4,647
|
)
|
(133
|
)
|
(17,451
|
)
|
|
Operating profit
|
4,511
|
|
3,229
|
|
6,805
|
|
2,134
|
|
(1,333
|
)
|
15,346
|
|
|
Share of profit in associates and joint ventures2
|
-
|
|
-
|
|
-
|
|
2
|
|
653
|
|
655
|
|
|
Constant currency profit before tax
|
4,511
|
|
3,229
|
|
6,805
|
|
2,136
|
|
(680
|
)
|
16,001
|
|
|
|
%
|
%
|
%
|
%
|
%
|
%
|
||||||
|
Share of HSBC's constant currency profit before tax
|
28.2
|
|
20.2
|
|
42.5
|
|
13.3
|
|
(4.2
|
)
|
100.0
|
|
|
Constant currency cost efficiency ratio
|
30.0
|
|
42.8
|
|
52.0
|
|
63.8
|
|
(11.1
|
)
|
50.1
|
|
|
|
|
|
|
|
|
|
||||||
|
Constant currency balance sheet data
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||
|
Loans and advances to customers (net)
|
225,442
|
|
286,036
|
|
311,033
|
|
148,341
|
|
187
|
|
971,039
|
|
|
Interests in associates and joint ventures
|
-
|
|
-
|
|
107
|
|
511
|
|
28,431
|
|
29,049
|
|
|
Total external assets
|
425,910
|
|
417,723
|
|
1,752,248
|
|
435,501
|
|
144,600
|
|
3,175,982
|
|
|
Customer accounts
|
508,730
|
|
336,506
|
|
577,443
|
|
274,578
|
|
342
|
|
1,697,599
|
|
|
Constant currency risk-weighted assets
|
138,513
|
|
144,550
|
|
414,039
|
|
91,393
|
|
90,724
|
|
879,219
|
|
1
Net interest expense recognised in Corporate Centre includes 1H26:
$4.8bn (1H25: $4.7bn) of interest expense in relation to the
internal cost to fund trading and fair value net assets; and the
funding cost of foreign exchange swaps in our Markets Treasury
function.
2
The amount in 1H25 includes a loss of $1.1bn inclusive of reserves
recycling as a result of the dilution of our shareholding in BoCom.
We also recognised a $1.0bn impairment loss following an impairment
test on the carrying value of the Group's investment in BoCom in
'Share of profit in associates and joint ventures less
impairment'.
|
Consolidated income statement
|
||||||
|
|
Half-year to
|
|||||
|
|
30 Jun 2026
|
30 Jun 2025
|
|
|||
|
|
$m
|
$m
|
|
|||
|
Net interest income
|
18,233
|
|
16,821
|
|
|
|
|
- interest income
|
48,062
|
|
49,008
|
|
|
|
|
- interest expense
|
(29,829
|
)
|
(32,187
|
)
|
|
|
|
Net fee income
|
7,277
|
|
6,643
|
|
|
|
|
- fee income
|
9,553
|
|
8,640
|
|
|
|
|
- fee expense
|
(2,276
|
)
|
(1,997
|
)
|
|
|
|
Net income from financial instruments held for trading or managed
on a fair value basis1
|
10,520
|
|
10,547
|
|
|
|
|
Net income from assets and liabilities of insurance businesses,
including related derivatives, measured at fair value through
profit or loss
|
6,105
|
|
5,113
|
|
|
|
|
Insurance finance expense
|
(5,838
|
)
|
(5,329
|
)
|
|
|
|
Insurance service result
|
1,033
|
|
785
|
|
|
|
|
- insurance service revenue
|
1,647
|
|
1,511
|
|
|
|
|
- insurance service expense
|
(614
|
)
|
(726
|
)
|
|
|
|
Net losses relating to sale of business
operations2
|
(433
|
)
|
(34
|
)
|
|
|
|
Other operating income/(expense)3
|
845
|
|
(424
|
)
|
|
|
|
Net operating income before change in
expected credit losses and other credit impairment
charges4
|
37,742
|
|
34,122
|
|
|
|
|
Change in expected credit losses and other credit impairment
charges
|
(2,353
|
)
|
(1,941
|
)
|
|
|
|
Net operating income
|
35,389
|
|
32,181
|
|
|
|
|
Employee compensation and benefits
|
(9,685
|
)
|
(9,903
|
)
|
|
|
|
General and administrative expenses
|
(5,285
|
)
|
(4,894
|
)
|
|
|
|
Depreciation and impairment of property, plant and equipment and
right-of-use assets
|
(1,022
|
)
|
(955
|
)
|
|
|
|
Amortisation and impairment of intangible assets
|
(1,434
|
)
|
(1,270
|
)
|
|
|
|
Total operating expenses
|
(17,426
|
)
|
(17,022
|
)
|
|
|
|
Operating profit
|
17,963
|
|
15,159
|
|
|
|
|
Share of profit in associates and joint ventures
|
1,559
|
|
1,651
|
|
|
|
|
Impairment of interest in associate3
|
-
|
|
(1,000
|
)
|
|
|
|
Profit before tax
|
19,522
|
|
15,810
|
|
|
|
|
Tax expense
|
(4,201
|
)
|
(3,369
|
)
|
|
|
|
Profit after tax
|
15,321
|
|
12,441
|
|
|
|
|
Attributable to:
|
|
|
|
|||
|
- ordinary shareholders of the parent company
|
14,626
|
|
11,510
|
|
|
|
|
- other equity holders
|
633
|
|
547
|
|
|
|
|
- non-controlling interests
|
62
|
|
384
|
|
|
|
|
Profit after tax
|
15,321
|
|
12,441
|
|
|
|
|
|
$
|
$
|
|
|||
|
Basic earnings per ordinary share
|
0.85
|
|
0.65
|
|
|
|
|
Diluted earnings per ordinary share
|
0.85
|
|
0.65
|
|
|
|
|
|
|
|
|
|||
1 The
amount in 1H25 includes a $0.1bn mark-to-market gain on interest
rate hedging of the portfolio of retained loans post sale of our
retail banking operations in France and a $0.1bn fair value loss on
Galicia's ADRs received as purchase consideration from the sale of
our business in Argentina, which were disposed of in
2Q25.
2
Amounts in 1H26 include $0.2bn from the recycling of foreign
currency translation reserve losses arising on completion of the
sale of our UK life insurance business, HSBC Life (UK) Limited, and
$0.3bn of disposal losses recognised upon the 'held for sale'
classification of HSBC Continental Europe's shareholding in HSBC
Bank Malta p.l.c.
3 The
amount in 1H25 'Other operating (expense)/income' includes a loss
of $1.1bn inclusive of reserves recycling as a result of the
dilution of our shareholding in BoCom. In the same period we also
recognised a $1.0bn impairment loss following an impairment test on
the carrying value of the Group's investment in BoCom in
'Impairment of interest in associate'.
4 Also
referred to as revenue.
|
Consolidated statement of comprehensive income
|
||||||
|
|
Half-year to
|
|||||
|
|
30 Jun 2026
|
30 Jun 2025
|
|
|||
|
|
$m
|
$m
|
|
|||
|
Profit for the period
|
15,321
|
|
12,441
|
|
|
|
|
Other comprehensive income/(expense)
|
|
|
|
|||
|
Items that will be reclassified subsequently to profit or loss when
specific conditions are met:
|
|
|
|
|||
|
Debt instruments at fair value through other comprehensive
income
|
(1,083
|
)
|
205
|
|
|
|
|
- fair value gains/(losses)
|
(1,188
|
)
|
640
|
|
|
|
|
- fair value gains transferred to the income statement on
disposal
|
(98
|
)
|
(83
|
)
|
|
|
|
- expected credit losses recognised in the income
statement
|
(1
|
)
|
2
|
|
|
|
|
- income taxes
|
204
|
|
(354
|
)
|
|
|
|
Cash flow hedges
|
(1,444
|
)
|
1,891
|
|
|
|
|
- fair value losses
|
(1,327
|
)
|
(568
|
)
|
|
|
|
- fair value losses/(gains) reclassified to the income
statement
|
(564
|
)
|
3,037
|
|
|
|
|
- income taxes
|
447
|
|
(578
|
)
|
|
|
|
Share of other comprehensive income/(expense) of associates and
joint ventures
|
(123
|
)
|
(59
|
)
|
|
|
|
- share for the period
|
(123
|
)
|
(3
|
)
|
|
|
|
-
other comprehensive income reclassified to the income statement on
disposal of interest in an associate
|
-
|
|
(56
|
)
|
|
|
|
Net finance income from insurance contracts
|
-
|
|
16
|
|
|
|
|
- net finance expenses
|
-
|
|
21
|
|
|
|
|
- income taxes
|
-
|
|
(5
|
)
|
|
|
|
Exchange differences
|
(349
|
)
|
6,404
|
|
|
|
|
- foreign exchange losses reclassified to the income statement on
disposal or dilution of a foreign operation
|
174
|
|
224
|
|
|
|
|
- other exchange differences
|
(523
|
)
|
6,180
|
|
|
|
|
Items that will not be reclassified subsequently to profit or
loss:
|
|
|
|
|||
|
Fair value gains on property revaluation
|
20
|
|
14
|
|
|
|
|
Remeasurement of defined benefit (liability)/asset
|
79
|
|
(347
|
)
|
|
|
|
- before income taxes
|
88
|
|
(461
|
)
|
|
|
|
- income taxes
|
(9
|
)
|
114
|
|
|
|
|
Changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
288
|
|
242
|
|
|
|
|
- before income taxes
|
386
|
|
315
|
|
|
|
|
- income taxes
|
(98
|
)
|
(73
|
)
|
|
|
|
Equity instruments designated at fair value through other
comprehensive income
|
(239
|
)
|
93
|
|
|
|
|
- fair value gains/(losses)
|
(244
|
)
|
88
|
|
|
|
|
- income taxes
|
5
|
|
5
|
|
|
|
|
Effects of hyperinflation
|
104
|
|
81
|
|
|
|
|
Other comprehensive income/(expense) for the period, net of
tax
|
(2,747
|
)
|
8,540
|
|
|
|
|
Total comprehensive income for the period
|
12,574
|
|
20,981
|
|
|
|
|
Attributable to:
|
|
|
|
|||
|
- ordinary shareholders of the parent company
|
11,914
|
|
19,917
|
|
|
|
|
- other equity holders
|
633
|
|
547
|
|
|
|
|
- non-controlling interests
|
27
|
|
517
|
|
|
|
|
Total comprehensive income for the period
|
12,574
|
|
20,981
|
|
|
|
|
Consolidated
balance sheet
|
||||
|
|
At
|
|||
|
|
30 Jun 2026
|
31 Dec 2025
|
||
|
|
$m
|
$m
|
||
|
Assets
|
|
|
||
|
Cash and balances at central banks
|
227,800
|
|
242,859
|
|
|
Hong Kong Government certificates of indebtedness
|
45,021
|
|
44,063
|
|
|
Trading assets
|
423,987
|
|
366,153
|
|
|
Financial assets designated and otherwise mandatorily measured at
fair value through profit or loss
|
138,942
|
|
133,063
|
|
|
Derivatives
|
255,995
|
|
237,740
|
|
|
Loans and advances to banks
|
110,529
|
|
108,462
|
|
|
Loans and advances to customers
|
1,022,105
|
|
988,399
|
|
|
Reverse repurchase agreements - non-trading
|
311,871
|
|
298,392
|
|
|
Financial investments
|
604,759
|
|
567,211
|
|
|
Assets held for sale
|
22,732
|
|
11,115
|
|
|
Prepayments, accrued income and other assets
|
221,473
|
|
184,794
|
|
|
Current tax assets
|
1,199
|
|
864
|
|
|
Interests in associates and joint ventures
|
31,333
|
|
29,577
|
|
|
Goodwill and intangible assets
|
12,728
|
|
13,107
|
|
|
Deferred tax assets
|
7,687
|
|
7,235
|
|
|
Total assets
|
3,438,161
|
|
3,233,034
|
|
|
Liabilities
|
|
|
||
|
Hong Kong currency notes in circulation
|
45,021
|
|
44,063
|
|
|
Deposits by banks
|
91,401
|
|
97,952
|
|
|
Customer accounts
|
1,827,703
|
|
1,786,828
|
|
|
Repurchase agreements - non-trading
|
276,266
|
|
204,974
|
|
|
Trading liabilities
|
86,363
|
|
72,122
|
|
|
Financial liabilities designated at fair value
|
173,751
|
|
158,456
|
|
|
Derivatives
|
254,662
|
|
237,854
|
|
|
Debt securities in issue
|
105,027
|
|
99,675
|
|
|
Liabilities of disposal groups held for sale
|
30,097
|
|
23,382
|
|
|
Accruals, deferred income and other liabilities
|
184,121
|
|
142,123
|
|
|
Current tax liabilities
|
3,561
|
|
3,037
|
|
|
Insurance contract liabilities
|
130,053
|
|
122,955
|
|
|
Provisions
|
2,942
|
|
3,441
|
|
|
Deferred tax liabilities
|
2,240
|
|
2,100
|
|
|
Subordinated liabilities
|
27,872
|
|
28,406
|
|
|
Total liabilities
|
3,241,080
|
|
3,027,368
|
|
|
Equity
|
|
|
||
|
Called up share capital
|
8,592
|
|
8,588
|
|
|
Share premium account
|
245
|
|
111
|
|
|
Other equity instruments
|
23,708
|
|
20,716
|
|
|
Other reserves
|
(3,449
|
)
|
(795
|
)
|
|
Retained earnings
|
167,586
|
|
169,605
|
|
|
Total shareholders' equity
|
196,682
|
|
198,225
|
|
|
Non-controlling interests
|
399
|
|
7,441
|
|
|
Total equity
|
197,081
|
|
205,666
|
|
|
Total liabilities and equity
|
3,438,161
|
|
3,233,034
|
|
|
Consolidated
statement of changes in equity
|
||||||||||||||||||||||||
|
|
|
|
|
Other reserves
|
|
|
|
|
||||||||||||||||
|
|
Called up share
capital
and share premium
|
|
Other
equity
instru-ments
|
Financial assets at FVOCI reserve
|
Cash
flow
hedging
reserve
|
Foreign
exchange
reserve
|
Merger and other
reserves
|
Insurance
finance
reserve
|
Retained
earnings
|
Total share-holders'
equity
|
Non-
controlling
interests
|
Total equity
|
||||||||||||
|
|
$m
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||||||||
|
At 1 Jan 2026
|
8,699
|
|
|
20,716
|
|
(319
|
)
|
570
|
|
(26,024
|
)
|
24,978
|
|
-
|
|
169,605
|
|
198,225
|
|
7,441
|
|
205,666
|
|
|
|
Profit for the period
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
15,259
|
|
15,259
|
|
62
|
|
15,321
|
|
|
|
Other comprehensive income (net of tax)
|
-
|
|
|
-
|
|
(1,254
|
)
|
(1,428
|
)
|
(398
|
)
|
20
|
|
-
|
|
348
|
|
(2,712
|
)
|
(35
|
)
|
(2,747
|
)
|
|
|
-
debt instruments at fair value through other comprehensive
income
|
-
|
|
|
-
|
|
(1,082
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,082
|
)
|
(1
|
)
|
(1,083
|
)
|
|
|
-
equity instruments designated at fair value through other
comprehensive income
|
-
|
|
|
-
|
|
(239
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(239
|
)
|
-
|
|
(239
|
)
|
|
|
-
cash flow hedges
|
-
|
|
|
-
|
|
-
|
|
(1,444
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,444
|
)
|
-
|
|
(1,444
|
)
|
|
|
-
changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
288
|
|
288
|
|
-
|
|
288
|
|
|
|
-
property revaluation
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
20
|
|
-
|
|
-
|
|
20
|
|
-
|
|
20
|
|
|
|
-
remeasurement of defined benefit asset/(liability)
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
79
|
|
79
|
|
-
|
|
79
|
|
|
|
-
share of other comprehensive income of associates and joint
ventures
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(123
|
)
|
(123
|
)
|
-
|
|
(123
|
)
|
|
|
-
effects of hyperinflation
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
104
|
|
104
|
|
-
|
|
104
|
|
|
|
- foreign exchange losses reclassified to income
statement on disposal or dilution of a foreign
operation1
|
-
|
|
|
-
|
|
-
|
|
-
|
|
174
|
|
-
|
|
-
|
|
-
|
|
174
|
|
-
|
|
174
|
|
|
|
-
other reserves reclassified to income statement on disposal or
dilution of a foreign operation
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
insurance finance income recognised in other comprehensive
income
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
other exchange differences
|
-
|
|
|
-
|
|
67
|
|
16
|
|
(572
|
)
|
-
|
|
-
|
|
-
|
|
(489
|
)
|
(34
|
)
|
(523
|
)
|
|
|
Total comprehensive income for the period
|
-
|
|
|
-
|
|
(1,254
|
)
|
(1,428
|
)
|
(398
|
)
|
20
|
|
-
|
|
15,607
|
|
12,547
|
|
27
|
|
12,574
|
|
|
|
Shares issued under employee remuneration and
share plans
|
138
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(138
|
)
|
-
|
|
-
|
|
-
|
|
|
|
Capital securities issued2
|
-
|
|
|
3,992
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,992
|
|
-
|
|
3,992
|
|
|
|
Dividends to shareholders
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(10,049
|
)
|
(10,049
|
)
|
(69
|
)
|
(10,118
|
)
|
|
|
Redemption of securities3
|
-
|
|
|
(1,000
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,000
|
)
|
-
|
|
(1,000
|
)
|
|
|
Cost of share-based payment arrangements
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
319
|
|
319
|
|
-
|
|
319
|
|
|
|
Share buy-backs
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
Cancellation of shares
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
Changes in ownership interests in subsidiaries4
|
-
|
|
|
|
-
|
|
141
|
|
66
|
|
66
|
|
161
|
|
-
|
|
(7,076
|
)
|
(6,642
|
)
|
(7,001
|
)
|
(13,643
|
)
|
|
Transfer of gain on disposal of equity investments at FVOCI to
retained earnings
|
-
|
|
|
-
|
|
(21
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
21
|
|
-
|
|
-
|
|
-
|
|
|
|
Other movements5
|
-
|
|
|
-
|
|
(7
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
(703
|
)
|
(710
|
)
|
1
|
|
(709
|
)
|
|
|
At 30 Jun 2026
|
8,837
|
|
|
23,708
|
|
(1,460
|
)
|
(792
|
)
|
(26,356
|
)
|
25,159
|
|
-
|
|
167,586
|
|
196,682
|
|
399
|
|
197,081
|
|
|
|
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
statement of changes in equity (continued)
|
||||||||||||||||||||||||
|
|
|
|
|
Other reserves
|
|
|
|
|
||||||||||||||||
|
|
Called up
share
capital
and
share premium
|
|
Other
equity
instru-
ments
|
Financial assets at FVOCI reserve
|
Cash
flow
hedging
reserve
|
Foreign exchange reserve
|
Merger and
other reserves
|
Insurance
finance
reserve
|
Retained
earnings
|
Total
share-
holders'
equity
|
Non-
controlling
interests
|
Total
equity
|
||||||||||||
|
|
$m
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
||||||||||||
|
At 1 Jan 2025
|
23,783
|
|
|
19,070
|
|
(3,246
|
)
|
(1,079
|
)
|
(32,887
|
)
|
26,328
|
|
602
|
|
152,402
|
|
184,973
|
|
7,300
|
|
192,273
|
|
|
|
Profit for the period
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
12,057
|
|
12,057
|
|
384
|
|
12,441
|
|
|
|
Other comprehensive income (net of tax)
|
-
|
|
|
-
|
|
6
|
|
1,734
|
|
6,630
|
|
14
|
|
102
|
|
(79
|
)
|
8,407
|
|
133
|
|
8,540
|
|
|
|
-
debt instruments at fair value through other comprehensive
income
|
-
|
|
|
-
|
|
177
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
177
|
|
28
|
|
205
|
|
|
|
-
equity instruments designated at fair value through other
comprehensive income
|
-
|
|
|
-
|
|
57
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
57
|
|
36
|
|
93
|
|
|
|
-
cash flow hedges
|
-
|
|
|
-
|
|
-
|
|
1,794
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,794
|
|
97
|
|
1,891
|
|
|
|
-
changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
242
|
|
242
|
|
-
|
|
242
|
|
|
|
-
property revaluation
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
14
|
|
-
|
|
-
|
|
14
|
|
-
|
|
14
|
|
|
|
-
remeasurement of defined benefit asset/(liability)
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(343
|
)
|
(343
|
)
|
(4
|
)
|
(347
|
)
|
|
|
-
share of other comprehensive income of associates and joint
ventures
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3
|
)
|
(3
|
)
|
-
|
|
(3
|
)
|
|
|
-
effects of hyperinflation
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
81
|
|
81
|
|
-
|
|
81
|
|
|
|
-
foreign exchange losses reclassified to income statement on
disposal or dilution of a foreign operation
|
-
|
|
|
-
|
|
-
|
|
-
|
|
224
|
|
-
|
|
-
|
|
-
|
|
224
|
|
-
|
|
224
|
|
|
|
-
other reserves reclassified to income statement on disposal or
dilution of a foreign operation
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(56
|
)
|
(56
|
)
|
-
|
|
(56
|
)
|
|
|
-
insurance finance income recognised in other comprehensive
income
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
16
|
|
-
|
|
16
|
|
-
|
|
16
|
|
|
|
-
other exchange differences
|
-
|
|
|
-
|
|
(228
|
)
|
(60
|
)
|
6,406
|
|
-
|
|
86
|
|
-
|
|
6,204
|
|
(24
|
)
|
6,180
|
|
|
|
Total comprehensive income for the period
|
-
|
|
|
-
|
|
6
|
|
1,734
|
|
6,630
|
|
14
|
|
102
|
|
11,978
|
|
20,464
|
|
517
|
|
20,981
|
|
|
|
Shares issued under employee remuneration and
share plans
|
113
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(113
|
)
|
-
|
|
-
|
|
-
|
|
|
|
Share premium reclassification to retained earnings
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
Capital redemption reserves reclassification to retained
earnings
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
Capital securities issued
|
-
|
|
|
4,096
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4,096
|
|
-
|
|
4,096
|
|
|
|
Dividends to shareholders
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(8,694
|
)
|
(8,694
|
)
|
(477
|
)
|
(9,171
|
)
|
|
|
Redemption of securities
|
-
|
|
|
(2,450
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(2,450
|
)
|
-
|
|
(2,450
|
)
|
|
|
Cost of share-based payment arrangements
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
316
|
|
316
|
|
-
|
|
316
|
|
|
|
Share buy-backs
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(5,023
|
)
|
(5,023
|
)
|
-
|
|
(5,023
|
)
|
|
|
Cancellation of shares
|
(239
|
)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
239
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
Changes in ownership interest in subsidiaries
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
Transfer of gain on disposal of equity investments at FVOCI to
retained earnings
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
Other movements
|
-
|
|
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,129
|
)
|
(1,128
|
)
|
(25
|
)
|
(1,153
|
)
|
|
|
At 30 Jun 2025
|
23,657
|
|
|
20,716
|
|
(3,239
|
)
|
655
|
|
(26,257
|
)
|
26,581
|
|
704
|
|
149,737
|
|
192,554
|
|
7,315
|
|
199,869
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
statement of changes in equity (continued)
|
|||||||||||||||||||||||||
|
|
|
|
|
Other reserves
|
|
|
|
|
|||||||||||||||||
|
|
Called up
share capital
and share premium
|
|
Other
equity
instru-
ments
|
Financial assets at FVOCI reserve
|
Cash
flow
hedging
reserve
|
Foreign exchange reserve
|
Merger and
other reserves
|
Insurance
finance
reserve
|
Retained
earnings
|
Total
share-
holders'
equity
|
Non-
controlling
interests
|
Total
equity
|
|||||||||||||
|
|
$m
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|||||||||||||
|
At 1 Jul 2025
|
23,657
|
|
|
20,716
|
|
(3,239
|
)
|
655
|
|
(26,257
|
)
|
26,581
|
|
704
|
|
149,737
|
|
192,554
|
|
7,315
|
|
199,869
|
|
||
|
Profit for the period
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
10,228
|
|
10,228
|
|
462
|
|
10,690
|
|
|
|
Other comprehensive income (net of tax)
|
-
|
|
|
|
-
|
|
2,920
|
|
(85
|
)
|
233
|
|
-
|
|
(704
|
)
|
(395
|
)
|
1,969
|
|
32
|
|
2,001
|
|
|
|
-
debt instruments at fair value through other comprehensive
income
|
-
|
|
|
|
-
|
|
2,090
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2,090
|
|
(4
|
)
|
2,086
|
|
|
|
-
equity instruments designated at fair value through other
comprehensive income
|
-
|
|
|
|
-
|
|
27
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
27
|
|
(22
|
)
|
5
|
|
|
|
-
cash flow hedges
|
-
|
|
|
|
-
|
|
-
|
|
(94
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
(94
|
)
|
(24
|
)
|
(118
|
)
|
|
|
-
changes in fair value of financial liabilities designated at fair
value upon initial recognition arising from changes in own credit
risk
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(721
|
)
|
(721
|
)
|
-
|
|
(721
|
)
|
|
|
-
property revaluation
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
-
remeasurement of defined benefit asset/(liability)
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
154
|
|
154
|
|
9
|
|
163
|
|
|
|
-
share of other comprehensive income of associates and joint
ventures
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
113
|
|
113
|
|
-
|
|
113
|
|
|
|
-
effects of hyperinflation
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
59
|
|
59
|
|
-
|
|
59
|
|
|
|
-
foreign exchange losses reclassified to income statement on
disposal or dilution of a foreign operation
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
(16
|
)
|
-
|
|
-
|
|
-
|
|
(16
|
)
|
-
|
|
(16
|
)
|
|
|
-
other reserves reclassified to income statement on disposal or
dilution of a foreign operation
|
-
|
|
|
|
-
|
|
745
|
|
-
|
|
-
|
|
-
|
|
(687
|
)
|
-
|
|
58
|
|
-
|
|
58
|
|
|
|
-
insurance finance expense recognised in other comprehensive
income
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(11
|
)
|
-
|
|
(11
|
)
|
-
|
|
(11
|
)
|
|
|
-
other exchange differences
|
-
|
|
|
|
-
|
|
58
|
|
9
|
|
249
|
|
-
|
|
(6
|
)
|
-
|
|
310
|
|
73
|
|
383
|
|
|
|
Total comprehensive income for the period
|
-
|
|
|
|
-
|
|
2,920
|
|
(85
|
)
|
233
|
|
-
|
|
(704
|
)
|
9,833
|
|
12,197
|
|
494
|
|
12,691
|
|
|
|
Shares issued under employee remuneration and share
plans
|
3
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3
|
)
|
-
|
|
-
|
|
-
|
|
|
|
Share premium reclassification to retained earnings
|
(14,810
|
)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
14,810
|
|
-
|
|
-
|
|
-
|
|
||
|
Capital redemption reserves reclassification to retained
earnings
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,755
|
)
|
-
|
|
1,755
|
|
-
|
|
-
|
|
-
|
|
||
|
Capital securities issued
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
Dividends to shareholders
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(4,070
|
)
|
(4,070
|
)
|
(241
|
)
|
(4,311
|
)
|
||
|
Redemption of securities
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
Cost of share-based payment arrangements
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
305
|
|
305
|
|
-
|
|
305
|
|
|
|
Share buy-backs
|
-
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,016
|
)
|
(3,016
|
)
|
-
|
|
(3,016
|
)
|
||
|
Cancellation of shares
|
(151
|
)
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
151
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
Changes in ownership interest in subsidiaries
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
Transfer of gain on disposal of equity investments at FVOCI to
retained earnings
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
|
|
Other movements
|
-
|
|
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
254
|
|
255
|
|
(127
|
)
|
128
|
|
|
|
At 31 Dec 2025
|
8,699
|
|
|
20,716
|
|
(319
|
)
|
570
|
|
(26,024
|
)
|
24,978
|
|
-
|
|
169,605
|
|
198,225
|
|
7,441
|
|
205,666
|
|
||
1
Amount in 1H26 includes the recycling of a $0.2bn foreign currency
translation reserves loss following completion of the sale of our
UK life insurance business, HSBC Life (UK) Limited.
2
HSBC Holdings issued $1.25bn at 6.750% and $1.25bn at 7.000% of
contingent convertible securities in March 2026, and $1.5bn at
6.750% of contingent convertible securities in May 2026. All
instruments were recorded net of issuance costs.
3
In March 2026, HSBC Holdings redeemed its $1.0bn 4.000% contingent
convertible securities.
4
Amount in 1H26 includes the impact of the $13.7bn privatisation of
Hang Seng Bank, which comprised the derecognition of $7.0bn in
non-controlling interests and a residual $6.7bn reduction in
shareholders' equity, partly offset by impact of foreign currency
translation.
5
Amount in 1H26 includes $0.7bn of shares bought by HSBC Holdings
Employee Benefit Trust under employee share plans.
|
Consolidated
statement of cash flows
|
||||||
|
|
Half-year
to
|
|||||
|
|
30 Jun 2026
|
30 Jun
2025
|
|
|||
|
|
$m
|
$m
|
|
|||
|
Profit before tax
|
19,522
|
|
15,810
|
|
|
|
|
Adjustments for non-cash items:
|
|
|
|
|||
|
Depreciation, amortisation and impairment
|
2,456
|
|
2,225
|
|
|
|
|
Net
loss/(gain) from investing activities1
|
(239
|
)
|
1,127
|
|
|
|
|
Share of profit in associates and joint ventures
|
(1,559
|
)
|
(1,651
|
)
|
|
|
|
Impairment
of interest in associate2
|
-
|
|
1,000
|
|
|
|
|
Net loss on acquisition/disposal of subsidiaries, businesses,
associates and joint ventures
|
355
|
|
73
|
|
|
|
|
Change in expected credit losses gross of recoveries and other
credit impairment charges
|
2,548
|
|
2,077
|
|
|
|
|
Provisions including pensions
|
175
|
|
584
|
|
|
|
|
Share-based payment expense
|
319
|
|
315
|
|
|
|
|
Other non-cash items included in profit before tax
|
(1,420
|
)
|
(2,732
|
)
|
|
|
|
Elimination
of exchange differences3
|
8,390
|
|
(41,720
|
)
|
|
|
|
Changes in operating assets and liabilities
|
|
|
|
|||
|
Change
in loans, deposits and other operating assets and
liabilities4
|
54,736
|
|
37,488
|
|
|
|
|
Dividends received from associates
|
222
|
|
850
|
|
|
|
|
Contributions paid to defined benefit plans
|
(96
|
)
|
(67
|
)
|
|
|
|
Tax paid
|
(3,647
|
)
|
(2,197
|
)
|
|
|
|
Net cash from operating activities
|
81,762
|
|
13,182
|
|
|
|
|
Purchase of financial investments
|
(262,844
|
)
|
(266,941
|
)
|
|
|
|
Proceeds from the sale and maturity of financial
investments
|
204,080
|
|
232,360
|
|
|
|
|
Net cash flows from the purchase and sale of property, plant and
equipment
|
(1,002
|
)
|
(504
|
)
|
|
|
|
Net investment in intangible assets
|
(1,366
|
)
|
(1,316
|
)
|
|
|
|
Net cash inflow on acquisition/disposal of subsidiaries,
businesses, associates and joint ventures
|
390
|
|
-
|
|
|
|
|
Net cash outflow on acquisition/disposal of subsidiaries,
businesses, associates and joint ventures
|
(2,660
|
)
|
(29
|
)
|
|
|
|
Net cash from investing activities
|
(63,402
|
)
|
(36,430
|
)
|
|
|
|
Issue of ordinary share capital and other equity
instruments
|
3,992
|
|
4,096
|
|
|
|
|
Share
buy-backs
|
-
|
|
(5,386
|
)
|
|
|
|
Net sales/(purchases) of own shares for market-making and
investment purposes
|
(750
|
)
|
(1,100
|
)
|
|
|
|
Net
cash flow from change in stakes of subsidiaries5
|
(13,643
|
)
|
-
|
|
|
|
|
Redemption of preference shares and other equity
instruments
|
(1,000
|
)
|
(2,450
|
)
|
|
|
|
Subordinated loan capital issued
|
-
|
|
2,340
|
|
|
|
|
Subordinated loan capital repaid
|
-
|
|
(1,986
|
)
|
|
|
|
Dividends paid to shareholders of the parent company and
non-controlling interests
|
(10,118
|
)
|
(9,171
|
)
|
|
|
|
Net cash from financing activities
|
(21,519
|
)
|
(13,657
|
)
|
|
|
|
Net decrease in cash and cash equivalents
|
(3,159
|
)
|
(36,905
|
)
|
|
|
|
Cash and cash equivalents at the beginning of the
period
|
432,887
|
|
434,940
|
|
|
|
|
Exchange differences in respect of cash and cash
equivalents
|
(5,456
|
)
|
30,872
|
|
|
|
|
Cash and cash equivalents at the end of the period6
|
424,272
|
|
428,907
|
|
|
|
Interest received was $50.4bn (1H25: $50.1bn), interest paid was
$32.7bn (1H25: $35.1bn) and dividends received (excluding dividends
received from associates, which are presented separately above)
were $1.5bn (1H25: $1.3bn).
1
Amount in 1H25 includes a loss of $1.1bn inclusive of reserves
recycling as a result of the dilution of our shareholding in
BoCom.
2
Amount in 1H25 includes a $1.0bn impairment loss following an
impairment test on the carrying value of the Group's investment in
BoCom.
3
Adjustments to bring changes between opening and closing balance
sheet amounts to average rates. This is not done on a line-by-line
basis, as details cannot be determined without unreasonable
expense.
4 This line item comprises amounts previously presented as 'Change
in operating assets' and 'Change in operating
liabilities'.
5
Amount in 1H26 relates to the privatisation of Hang Seng
Bank.
6
Includes $1.7bn (1H25: $2.5bn) of cash and cash equivalents
classified as held for sale.
1 Basis of preparation and material accounting
policies
(a)
Compliance with International Financial Reporting
Standards
Our interim condensed consolidated financial statements have been
prepared on the basis of the policies set out in the 2025 annual
financial statements except for those related to certain amendments
to IFRS 9 'Financial Instruments' and IFRS 7 'Financial
Instruments: Disclosures' as set out below. They have also been
prepared in accordance with IAS 34 'Interim Financial Reporting' as
adopted by the UK, IAS 34 'Interim Financial Reporting' as issued
by the International Accounting Standards Board ('IASB'), IAS 34
'Interim Financial Reporting' as adopted by the EU, and the
Disclosure Guidance and Transparency Rules sourcebook of the UK's
Financial Conduct Authority. Therefore, they include an explanation
of events and transactions that are significant to an understanding
of the changes in HSBC's financial position and performance since
the end of 2025.
These interim condensed consolidated financial statements should be
read in conjunction with the Annual Report and Accounts 2025, which
was prepared in accordance with UK-adopted international accounting
standards in conformity with the requirements of the Companies Act
2006 and international financial reporting standards adopted
pursuant to Regulation (EC) No 1606/2002 as it applies in the
European Union. These interim condensed consolidated financial
statements were also prepared in accordance with International
Financial Reporting Standards ('IFRS Accounting Standards') as
issued by the IASB, including interpretations issued by the IFRS
Interpretations Committee.
At 30 June 2026, there were no IFRS Accounting Standards effective
for the half-year to 30 June 2026 affecting these financial
statements that were not approved for adoption in the UK by the UK
Endorsement Board. There was no difference between IFRS Accounting
Standards adopted by the UK, IFRS Accounting Standards as adopted
by the EU, and IFRS Accounting Standards issued by the IASB in
terms of their application to HSBC.
Standards applied during the half-year to 30 June 2026
On 1 January 2026 the Group adopted 'Amendments to the
Classification and Measurement of Financial Instruments -
Amendments to IFRS 9 and IFRS 7'. In addition to guidance as to
when certain financial liabilities can be deemed settled when using
an electronic payment system, the amendments also provide further
clarification regarding the classification of financial assets that
contain contractual terms that change the timing or amount of
contractual cash flows, including those arising from ESG-related
contingencies, and financial assets with certain non-recourse
features. These amendments had no material effect on the
Group.
(b)
Use of estimates and judgements
Management believes that the critical estimates and judgements
applicable to the Group are those that relate to impairment of
amortised cost and FVOCI debt financial assets, the valuation of
financial instruments, deferred tax assets, provisions, interests
in associates, impairment of goodwill and non-financial assets, and
post-employment benefit plans. The Group does not consider there to
be a significant risk of a material adjustment to the carrying
amount of goodwill in this financial year, but does consider this
to be an area that is inherently judgemental.
There were no material changes in the current period to any of the
critical estimates and judgements disclosed in 2025, which are
stated on pages 67 and 274 to 285 of the Annual Report and Accounts
2025.
(c)
Composition of the Group
There were no material individual changes in the composition of the
Group in the half-year to 30 June 2026. Following the privatisation
of Hang Seng Bank, the Group acquired the remaining ownership
interests, and the related non-controlling interests were
derecognised within equity.
For details of future business acquisitions and disposals, see Note
15 'Assets held for sale, liabilities of disposal groups held for
sale and business acquisitions' in the Interim Report
2026.
(d)
Future accounting developments
IFRS 18 'Presentation and Disclosure in Financial
Statements'
In April 2024, the IASB issued IFRS 18 'Presentation and Disclosure
in Financial Statements', effective for annual reporting periods
beginning on or after 1 January 2027. The new accounting standard
aims to give users of financial statements more transparent and
comparable information about an entity's financial performance. It
will replace IAS 1 'Presentation of Financial Statements' but
carries over many requirements from that IFRS Accounting Standard
unchanged. In addition, there are three sets of new requirements
relating to the structure of the income statement,
management-defined performance measures, and the aggregation and
disaggregation of financial information.
While IFRS 18 will not change recognition criteria or measurement
bases, it will have an impact on presenting information in the
financial statements, in particular the income statement and to a
lesser extent the cash flow statement. HSBC is currently evaluating
impacts and ensuring data readiness is adequate in anticipation of
implementation.
Amendments to IAS 28 'Investments in Associates and Joint
Ventures'
In June 2026, the IASB issued 'Amendments to the Fair Value Option
for Investments in Associates and Joint Ventures - Amendments to
IAS 28', applicable when an entity first applies IFRS 18.
These narrow-scope amendments, which remain subject to adoption in
both the UK and the EU, clarify that entities with a specified main
business activity of investing in assets as assessed under IFRS 18
can elect to apply the fair value option to investments in
associates and joint ventures. The Group is considering these
amendments in the light of ongoing IFRS 18 preparatory
work.
(e) Going concern
The financial statements are prepared on a going concern basis, as
the Directors are satisfied that the Group and parent company have
the resources to continue in business for the foreseeable future.
In making this assessment, the Directors have considered a wide
range of information relating to present and future conditions,
including future projections of profitability, cash flows, capital
requirements and capital resources.
These considerations include stressed scenarios that reflect the
uncertainty in the macroeconomic environment, including: ongoing
supply chain disruptions, uncertain inflation, rapidly-changing
interest rates, the impact of the Russia-Ukraine war and conflict
in the Middle East, varying pace of recovery in the Hong Kong CRE
sector, heightened strategic competition between the US and China,
ongoing and potential cross-border investment and trade
restrictions, potential financial impact of trade and tariff policy
developments, as well as the potential impacts from other top and
emerging risks, including climate change, and the related impacts
on profitability, capital and liquidity.
(f) Accounting policies
Except as described above, the accounting policies that we applied
for these interim condensed consolidated financial statements are
consistent with those described on pages 274 to 285 of the Annual
Report and Accounts 2025, as are the methods of
computation.
|
|
2 Dividends
On 4 August 2026, the Directors approved a second interim dividend
for 2026 of $0.10 per ordinary share in respect of the financial
year ending 31 December 2026. This distribution amounts to
approximately $1.72bn and will be payable on 25 September
2026. No liability is recognised in the financial statements in
respect of these dividends.
|
Dividends paid to shareholders of HSBC Holdings plc
|
||||||||||||||||||
|
|
Half-year to
|
|||||||||||||||||
|
|
30 Jun 2026
|
30 Jun 2025
|
|
|||||||||||||||
|
|
Per share
|
Total
|
|
Per share
|
Total
|
|
|
|
|
|||||||||
|
|
$
|
$m
|
|
$
|
$m
|
|
|
|
|
|||||||||
|
Dividends paid on ordinary shares
|
|
|
|
|
|
|
|
|
|
|||||||||
|
In respect of previous year:
|
|
|
|
|
|
|
|
|
|
|||||||||
|
-
fourth interim dividend
|
0.45
|
|
7,714
|
|
|
0.36
|
|
6,397
|
|
|
|
|
|
|||||
|
In respect of current year:
|
|
|
|
|
|
|
|
|
|
|||||||||
|
- first interim dividend
|
0.10
|
|
1,702
|
|
|
|
0.10
|
|
1,750
|
|
|
|
|
|
|
|
|
|
|
Total
|
0.55
|
|
9,416
|
|
|
|
0.46
|
|
8,147
|
|
|
|
|
|
|
|
|
|
|
Total coupons on capital securities classified as
equity
|
|
633
|
|
|
|
547
|
|
|
|
|
|
|
||||||
|
Dividends to shareholders
|
|
10,049
|
|
|
|
8,694
|
|
|
|
|
|
|
||||||
Second interim dividend for 2026
On 4 August 2026, the Directors approved a second interim dividend
in respect of the financial year ending 31 December 2026 of $0.10
per ordinary share (the 'dividend'), an expected distribution of
approximately $1.72bn. The dividend will be payable on 25 September
2026 to holders of record on the Principal Register in the UK, the
Hong Kong Overseas Branch Register or the Bermuda Overseas Branch
Register on 14 August 2026.
The dividend will be payable in US dollars, or in pounds sterling
or Hong Kong dollars at the forward exchange rates quoted by HSBC
Bank plc in London at or about 11.00am local time on 14 September
2026. The ordinary shares in London, Hong Kong and Bermuda will be
quoted ex-dividend on 13 August 2026. American Depositary
Shares ('ADSs') in New York will be quoted ex-dividend on 14 August
2026.
The default currency on the Principal Register in the UK is pounds
sterling, and dividends can also be paid in Hong Kong dollars or US
dollars, or a combination of these currencies. International
shareholders can register to join the Global Dividend Service to
receive dividends in their local currencies. Please register and
read the terms and conditions at www.investorcentre.co.uk. UK
shareholders can also register their pounds sterling bank mandates
at www.investorcentre.co.uk.
The default currency on the Hong Kong Overseas Branch Register is
Hong Kong dollars, and dividends can also be paid in US dollars or
pounds sterling, or a combination of these currencies. Shareholders
can arrange for direct credit of Hong Kong dollar cash dividends
into their bank account, or arrange to send US dollar or pounds
sterling cheques to the credit of their bank account. Shareholders
can register for these services at www.investorcentre.com/hk.
Shareholders can also download a dividend currency election form
from www.hsbc.com/dividends, www.investorcentre.com/hk, or
www.hkexnews.hk.
The default currency on the Bermuda Overseas Branch Register is US
dollars, and dividends can also be paid in Hong Kong dollars or
pounds sterling, or a combination of these currencies. Shareholders
can change their dividend currency election by contacting the
Bermuda investor relations team. Shareholders can download a
dividend currency election form from
www.hsbc.com/dividends.
Changes to currency elections must be received by 9 September 2026
to be effective for this dividend.
The dividend will be payable on ADSs, each of which represents five
ordinary shares, on 25 September 2026 to holders of record on
14 August 2026. The dividend of $0.50 per ADS will be
payable by the depositary in US dollars. Alternatively, the cash
dividend may be invested in additional ADSs by participants in the
dividend reinvestment plan operated by the depositary. Elections
must be received by 4 September 2026.
Any person who has acquired ordinary shares registered on the
Principal Register in the UK, the Hong Kong Overseas Branch
Register or the Bermuda Overseas Branch Register but who has not
lodged the share transfer with the Principal Registrar in the UK,
Hong Kong Overseas Branch Registrar or Bermuda Overseas Branch
Registrar should do so before 4.00pm local time on 14 August 2026
in order to receive the dividend.
Ordinary shares may not be removed from or transferred to the
Principal Register in the UK, the Hong Kong Overseas Branch
Register or the Bermuda Overseas Branch Register on 14 August 2026.
Any person wishing to remove ordinary shares to or from each
register must do so before 4.00pm local time on 13 August
2026.
Shares repurchased under HSBC Holdings plc buy-backs, which have
not yet been cancelled from the Hong Kong custodians' CCASS account
as at the record date, will not be eligible for the
dividend.
Transfers of ADSs must be lodged with the depositary by 11.00am
local time on 14 August 2026 in order to receive the dividend. ADS
holders who receive a cash dividend will be charged a fee, which
will be deducted by the depositary, of $0.005 per ADS per cash
dividend.
Dividend on preference share
A quarterly dividend of £0.01 per Series A sterling preference
share is payable on 16 March, 15 June, 15 September and
15 December 2026 for the quarter then ended at the sole and
absolute discretion of the Board of HSBC Holdings plc. Accordingly,
the Board of HSBC Holdings plc has approved a quarterly dividend to
be payable on 15 September 2026 to holders of record on 28 August
2026.
|
|
3 Earnings per share
Basic earnings per ordinary share is calculated by dividing the
profit attributable to ordinary shareholders of the parent company
by the weighted average number of ordinary shares outstanding,
after deducting own shares held. Diluted earnings per ordinary
share is calculated by dividing the basic earnings, which require
no adjustment for the effects of dilutive potential ordinary
shares, by the weighted average number of ordinary shares
outstanding, excluding own shares held, plus the weighted average
number of ordinary shares that would be issued on conversion of
dilutive potential ordinary shares.
|
Basic and diluted earnings per share
|
|||||||||||||||||||
|
|
Half-year
to
|
|
|||||||||||||||||
|
|
30 Jun 2026
|
30 Jun 2025
|
|
|
|||||||||||||||
|
|
Profit
|
Number
of shares
|
Amount
per share
|
Profit
|
Number
of shares
|
Amount
per
share
|
|
|
|
|
|||||||||
|
|
$m
|
(millions)
|
$
|
$m
|
(millions)
|
$
|
|
|
|
|
|||||||||
|
Basic1
|
14,626
|
|
17,146
|
|
0.85
|
|
11,510
|
|
17,646
|
|
0.65
|
|
|
|
|
|
|
|
|
|
Effect of dilutive potential ordinary shares
|
|
99
|
|
|
|
126
|
|
|
|
|
|
|
|
||||||
|
Diluted1
|
14,626
|
|
17,245
|
|
0.85
|
|
11,510
|
|
17,772
|
|
0.65
|
|
|
|
|
|
|
|
|
1
Weighted average number of ordinary shares outstanding (basic) or
assuming dilution (diluted).
|
|
4 Constant currency balance sheet reconciliation
|
|
At 30 Jun 2026
|
At 30
Jun 2025
|
At 31
Dec 2025
|
|||||||||||
|
|
Reported and constant currency
|
Constant currency
|
Currency translation
|
Reported
|
Constant currency
|
Currency translation
|
Reported
|
|||||||
|
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
$m
|
|||||||
|
Loans and advances to customers (net)
|
1,022,105
|
|
971,039
|
|
(10,683
|
)
|
981,722
|
|
981,950
|
|
(6,449
|
)
|
988,399
|
|
|
Interests in associates and joint ventures
|
31,333
|
|
29,049
|
|
847
|
|
28,202
|
|
30,026
|
|
449
|
|
29,577
|
|
|
Total external assets
|
3,438,161
|
|
3,175,982
|
|
(38,389
|
)
|
3,214,371
|
|
3,206,415
|
|
(26,619
|
)
|
3,233,034
|
|
|
Customer accounts
|
1,827,703
|
|
1,697,599
|
|
(21,005
|
)
|
1,718,604
|
|
1,771,972
|
|
(14,856
|
)
|
1,786,828
|
|
|
|
5 Reported and constant currency results1
|
|
Half-year
to
|
|||||
|
|
30 Jun 2026
|
30 Jun
2025
|
|
|||
|
|
$m
|
$m
|
|
|||
|
Revenue
|
|
|
|
|||
|
Reported
|
37,742
|
|
34,122
|
|
|
|
|
Currency translation
|
-
|
|
690
|
|
|
|
|
Constant currency
|
37,742
|
|
34,812
|
|
|
|
|
Change in expected credit losses and other credit impairment
charges
|
|
|
|
|||
|
Reported
|
(2,353
|
)
|
(1,941
|
)
|
|
|
|
Currency translation
|
-
|
|
(74
|
)
|
|
|
|
Constant currency
|
(2,353
|
)
|
(2,015
|
)
|
|
|
|
Operating expenses
|
|
|
|
|||
|
Reported
|
(17,426
|
)
|
(17,022
|
)
|
|
|
|
Currency translation
|
-
|
|
(429
|
)
|
|
|
|
Constant currency
|
(17,426
|
)
|
(17,451
|
)
|
|
|
|
Share of profit in associates and joint ventures less
impairment
|
|
|
|
|||
|
Reported
|
1,559
|
|
651
|
|
|
|
|
Currency translation
|
-
|
|
4
|
|
|
|
|
Constant currency
|
1,559
|
|
655
|
|
|
|
|
Profit before tax
|
|
|
|
|||
|
Reported
|
19,522
|
|
15,810
|
|
|
|
|
Currency translation
|
-
|
|
191
|
|
|
|
|
Constant currency
|
19,522
|
|
16,001
|
|
|
|
|
Profit after tax
|
|
|
|
|||
|
Reported
|
15,321
|
|
12,441
|
|
|
|
|
Currency translation
|
-
|
|
132
|
|
|
|
|
Constant currency
|
15,321
|
|
12,573
|
|
|
|
1
In the current period constant currency results are equal to
reported as there is no currency translation.
|
Notable items
|
||||||
|
|
Half-year to
|
|||||
|
|
30 Jun 2026
|
30 Jun
2025
|
|
|||
|
|
$m
|
$m
|
|
|||
|
Revenue
|
|
|
|
|||
|
Disposals,
wind-downs, acquisitions and related costs1
|
(426
|
)
|
(139
|
)
|
|
|
|
Dilution
loss of interest in BoCom associate2
|
-
|
|
(1,136
|
)
|
|
|
|
Operating expenses
|
|
|
|
|||
|
Disposals,
wind-downs, acquisitions and related costs1
|
(129
|
)
|
(227
|
)
|
|
|
|
Restructuring
and other related costs3
|
(318
|
)
|
(616
|
)
|
|
|
|
Impairment loss of interest in BoCom associate2
|
-
|
|
(1,000
|
)
|
|
|
|
Tax
|
|
|
|
|||
|
Tax credit on notable items
|
85
|
|
379
|
|
|
|
1
The amount in 1H26 includes $0.2bn from the recycling of foreign
currency translation reserve losses arising on completion of the
sale of our UK life insurance business, HSBC Life (UK) Limited, and
$0.3bn of disposal losses recognised upon the 'held for sale'
classification of HSBC Continental Europe's shareholding in HSBC
Bank Malta p.l.c. 1H25 includes $0.1bn fair value losses on ADRs in
Galicia received as a part of the sale consideration for HSBC
Argentina, which were sold in 2Q25.
2
The amount in 1H25 includes a loss of $1.1bn inclusive of reserves
recycling as a result of the dilution of our shareholding in BoCom.
We also recognised a $1.0bn impairment loss following an impairment
test on the carrying value of the Group's investment in BoCom in
'Impairment loss of interest in BoCom associate'.
3
Amounts relate to organisational simplification provisions
recognised in 2026 and 2025.
|
|
6 Contingent liabilities, contractual commitments and
guarantees
|
|
At
|
|||||||||
|
|
30 Jun 2026
|
|
|
|
31 Dec 2025
|
|||||
|
|
$m
|
|
|
|
$m
|
|||||
|
Guarantees and other contingent liabilities:
|
|
|
|
|
|
|||||
|
- financial guarantees
|
18,884
|
|
|
|
|
|
|
|
17,476
|
|
|
-
performance and other guarantees
|
106,724
|
|
|
|
|
|
102,684
|
|
||
|
-
other contingent liabilities
|
104
|
|
|
|
|
|
|
|
164
|
|
|
At the end of the period
|
125,712
|
|
|
|
|
|
|
|
120,324
|
|
|
Commitments:1
|
|
|
|
|
|
|||||
|
-
documentary credits and short-term trade-related
transactions
|
8,563
|
|
|
|
|
|
|
|
6,959
|
|
|
-
forward asset purchases and forward deposits placed
|
163,989
|
|
|
|
|
|
|
|
84,978
|
|
|
-
standby facilities, credit lines and other commitments to
lend
|
874,730
|
|
|
|
|
|
|
|
856,700
|
|
|
At the end of the period
|
1,047,282
|
|
|
|
|
|
|
|
948,637
|
|
1 Includes $778.4bn of
commitments at 30 June 2026 (31 December 2025:
$690.8bn), to which the impairment
requirements in IFRS 9 are applied.
The preceding table discloses the nominal principal amounts of
off-balance sheet liabilities and commitments for the Group, which
represent the maximum amounts at risk should
the contracts be fully drawn upon and the clients default. As a
significant portion of guarantees and commitments is expected to
expire without being drawn upon, the total of the nominal principal
amounts is not indicative of future liquidity requirements. The
expected credit loss provision relating to guarantees and
commitments under IFRS 9 is disclosed in Note 11 of the Interim
Report 2026.
The majority of the guarantees have a term of
less than one year. All guarantees are subject to HSBC's annual
credit review process.
Potential contingent liabilities arising from legal proceedings and
regulatory and other matters against Group companies are excluded
from this note but are disclosed in Note 7 below.
|
|
7 Legal proceedings and regulatory matters
HSBC is party to legal proceedings and regulatory matters in a
number of jurisdictions arising out of its normal business
operations. Apart from the matters described below, HSBC considers
that none of these matters are material. The recognition of
provisions is determined in accordance with the accounting policies
set out in Note 1 of the Annual Report and Accounts 2025. While the
outcomes of legal proceedings and regulatory matters are inherently
uncertain, management believes that, based on the information
available to it, appropriate provisions have been made in respect
of these matters as at 30 June 2026 (see Note 11 of the Interim
Report 2026). Where an individual provision is material, the fact
that a provision has been made is stated and quantified, except to
the extent that doing so would be seriously prejudicial. Any
provision recognised does not constitute an admission of wrongdoing
or legal liability. It is not practicable to provide an aggregate
estimate of potential liability for our legal proceedings and
regulatory matters as a class of contingent
liabilities.
Bernard L. Madoff Investment Securities LLC
Various HSBC companies that provided custodial, administration and
similar services to a number of funds whose assets were invested
with Bernard L. Madoff Investment Securities LLC ('Madoff
Securities') have been named as defendants in lawsuits arising out
of Madoff Securities' fraud.
Trustee litigation: The Madoff Securities trustee
(the 'Trustee') has brought lawsuits in the US against various HSBC
companies and others seeking recovery of alleged transfers from
Madoff Securities to the HSBC companies in the amount
of $508m (plus interest). In September 2025, the US
Bankruptcy Court for the Southern District of New York dismissed
all claims against HSBC Private Bank (Suisse) SA in the amount
of $292m and certain claims against HSBC Bank USA N.A.
('HSBC Bank USA') in the amount of $32m. These dismissals are
now final. The Trustee's remaining claims, which amount
to $184m (plus interest), are
pending.
The Trustee has filed a claim against various HSBC companies in the
High Court of England and Wales seeking recovery of alleged
transfers from Madoff Securities to the HSBC companies. The claim
has not yet been served and the amount claimed has not been
specified.
Fairfield Funds litigation: Fairfield Sentry Limited,
Fairfield Sigma Limited and Fairfield Lambda Limited (each in
liquidation and together, the 'Fairfield Funds') have brought
lawsuits in the US against various HSBC companies and others
seeking recovery of alleged transfers from the Fairfield Funds to
the HSBC companies (that acted as nominees for clients) in the
amount of $367m (plus interest). In August 2025, the US Court of
Appeals for the Second Circuit confirmed the dismissal of Fairfield
Funds' claims against all HSBC companies. Fairfield Funds have
filed a petition for review of the dismissal by the US Supreme
Court, which is pending.
Herald Fund SPC ('Herald') litigation: HSBC Securities Services
Luxembourg ('HSSL') and HSBC Bank plc are defending an action
brought by Herald (in liquidation) before the Luxembourg District
Court seeking restitution of securities (the amount of which would
be determined by further proceedings, if Herald is successful in
its claim) and $521m in cash (plus interest) or,
alternatively, damages in the amount of $5.6bn (plus interest).
There are various proceedings pending before the Luxembourg courts
relating to Herald's action and the timing of when these will be
determined is uncertain. Herald's damages claim against HSSL and
HSBC Bank plc has been stayed. Following an appeal by HSSL,
Herald's cash restitution claim has been returned to the Luxembourg
District Court for determination. In July 2026, the Luxembourg
Court of Appeal denied a second appeal by HSSL in respect of
Herald's securities restitution claim. HSSL has a right to seek a
further appeal to the Luxembourg Court of Cassation. There will be
further proceedings before the Luxembourg Court of Appeal to
determine the quantum of restitution HSSL may be required to pay to
Herald. HSSL continues to recognise a $1.1bn provision in
connection with this matter. Given the complexities and
uncertainties associated with determining the quantum of
restitution, the eventual financial impact could be significantly
different.
Alpha Prime Fund Limited ('Alpha Prime')
litigation: Various HSBC companies are
defending an action brought by Alpha Prime in the Luxembourg
District Court seeking restitution of securities and $1bn
(plus interest) in supplementary damages or, alternatively, damages
in the amount of $3.3bn (plus interest). This matter is
currently pending before the Luxembourg District
Court.
In November 2024, Alpha Prime served various HSBC companies with a
lawsuit filed in the Bermuda Supreme Court seeking damages for
unspecified amounts for alleged breach of contract and negligence.
This claim is currently stayed.
Senator Fund SPC ('Senator') litigation: HSSL and the Luxembourg branch of
HSBC Bank plc are defending an action brought by Senator before the
Luxembourg District Court seeking restitution of securities or,
alternatively, damages in the amount of $1.4bn (plus
interest). This matter is currently pending before the Luxembourg
District Court.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of these matters, including
the timing or any possible impact on HSBC, which could be
significant.
US Anti-Terrorism Act litigation
Since November 2014, a number of lawsuits have been filed in
federal courts in the US against various HSBC companies and others
on behalf of plaintiffs who are, or are related to, alleged victims
of terrorist attacks in the Middle East. In each case, it is
alleged that the defendants aided and abetted the unlawful conduct
of various sanctioned parties in violation of the US Anti-Terrorism
Act, or provided banking services to customers alleged to have
connections to terrorism financing. Six actions, which seek damages
for unspecified amounts, remain pending. Two of these actions have
been dismissed but may be appealed. The other four actions remain
at an early procedural stage.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of these matters, including
the timing or any possible impact on HSBC, which could be
significant.
US dollar Libor litigation
Various HSBC companies are defending two individual actions which
allege that the HSBC defendants violated various US federal and
state laws, including antitrust laws, related to the setting of US
dollar Libor, and seek damages for unspecified amounts. In
September 2025, the US District Court for the Southern District of
New York granted the defendants' joint motion for summary judgment
and dismissed these actions. The plaintiffs have
appealed.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of these matters, including
the timing or any possible impact on HSBC, which could be
significant.
Foreign exchange-related investigations and litigation
In December 2016, Brazil's Administrative Council of Economic
Defense initiated an investigation into the onshore foreign
exchange market and identified a number of banks, including HSBC,
as subjects of its investigation. This investigation is ongoing.
Lawsuits alleging foreign exchange-related misconduct remain
pending against HSBC and other banks in courts in
Brazil.
Since 2017, HSBC Bank plc, among other financial institutions, has
been defending a complaint filed by the Competition Commission of
South Africa before the South African Competition Tribunal for
alleged anti-competitive behaviour in the South African foreign
exchange market. In 2020, a revised complaint was filed which also
named HSBC Bank USA as a defendant. In June 2026, the
Constitutional Court of South Africa confirmed the dismissal of
HSBC Bank USA from the revised complaint but determined that the
complaint can proceed against HSBC Bank plc.
HSBC Bank plc and HSBC Holdings have reached a settlement with
plaintiffs in Israel to resolve a class action filed in the local
courts alleging foreign exchange-related misconduct. The
settlement, the impact of which is not significant and is fully
provisioned, remains subject to court approval.
In February 2024, HSBC Bank plc and HSBC Holdings were joined to an
existing claim brought in the UK Competition Appeals Tribunal ('UK
CAT') against various other banks alleging historical
anti-competitive behaviour in the foreign exchange market and
seeking approximately £3bn in damages from all the defendants.
In December 2025, the UK Supreme Court upheld an earlier ruling of
the UK CAT refusing certification as an opt-out claim. This matter
remains pending before the UK CAT.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of these matters, including
the timing or any possible impact on HSBC, which could be
significant.
Precious metals fix-related litigation
US litigation: Various HSBC companies and other
members of The London Silver Market Fixing Limited are defending a
class action pending in the US District Court for the Southern
District of New York alleging that, from January 2007 to December
2013, the defendants conspired to manipulate the price of silver
and silver derivatives for their collective benefit in violation of
US antitrust laws, the US Commodity Exchange Act and New York state
law. In May 2023, this action, which seeks damages for unspecified
amounts, was dismissed but remains pending on appeal. Based on the
facts currently known, it is not practicable at this time for HSBC
to predict the resolution of this matter, including the timing or
any possible impact on HSBC, which could be
significant.
Canada litigation: Various HSBC companies and other
financial institutions have been defending putative class actions
filed in the Ontario and Quebec Superior Courts of Justice alleging
that the defendants conspired to manipulate the price of silver,
gold and related derivatives in violation of the Canadian
Competition Act and common law. These actions each seek CA$1bn in
damages plus CA$250m in punitive damages. The HSBC defendants
have reached a settlement with the plaintiffs to resolve these
matters. The settlement, the impact of which is not significant and
is fully provisioned, is subject to final court
approval.
Tax-related investigations
HSBC Bank plc and the German branch of HSBC Continental Europe
continue to cooperate with investigations by the German public
prosecutor into numerous financial institutions and their
employees, in connection with the dividend withholding tax
treatment of certain trading activities. Based on the facts
currently known, it is not practicable at this time for HSBC to
predict the resolution of this matter, including the timing or any
possible impact on HSBC, which could be significant.
Gilts trading litigation
In June 2023, HSBC Bank plc and HSBC Securities (USA) Inc., among
other banks, were named as defendants in a putative class action
filed in the US District Court for the Southern District of New
York by plaintiffs alleging anti-competitive conduct in the gilts
market and seeking damages for unspecified amounts. Certain of the
defendants, including HSBC Bank plc and HSBC Securities (USA) Inc.,
have reached a settlement with the plaintiffs to resolve this
matter. The settlement, the impact of which is not significant and
has been paid, remains subject to final court
approval.
Korean short selling indictment
In March 2024, the Korean Prosecutors' Office issued a criminal
indictment against The Hongkong and Shanghai Banking Corporation
Limited ('HBAP') and three current and former employees for
breaching short selling rules under the Financial Investment
Services and Capital Markets Act in connection with trades carried
out between August 2021 and December 2021. In September 2025, the
Korean appellate court confirmed the acquittal of HBAP of all
charges. The Korean Prosecutors' Office has further appealed to the
Korean Supreme Court.
Investigations involving HSBC Private Bank (Suisse) SA
Law enforcement authorities in Switzerland and France are
conducting criminal investigations into HSBC Private Bank (Suisse)
SA in connection with alleged money laundering offences in respect
of two historical banking relationships. In May 2026, HSBC Private
Bank (Suisse) SA was placed under formal examination in the
investigation in France. HSBC Private Bank (Suisse) SA continues to
cooperate with both investigations, which are ongoing.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of these matters, including
the timing or any possible impact on HSBC, which could be
significant.
First Citizens litigation
In May 2023, First-Citizens Bank & Trust Company ('First
Citizens') brought a lawsuit in the US District Court for the
Northern District of California against various HSBC companies and
seven US-based HSBC employees who had previously worked for Silicon
Valley Bank ('SVB'). The lawsuit seeks $1bn in damages and alleges,
among other things, that the various HSBC companies conspired with
the individual defendants to solicit employees from First Citizens
and that the individual defendants took confidential information
belonging to SVB and/or First Citizens. In May 2026, the court
dismissed claims that First Citizens had purportedly acquired from
the Federal Deposit Insurance Corporation ('FDIC'), and claims
against defendants that First Citizens had sought to bring back
into the litigation following their dismissal by the court in July
2024. First Citizens' remaining claims are proceeding against two
HSBC companies and one of the individuals.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of this matter, including
the timing or any possible impact on HSBC, which could be
significant.
US mortgage securitisation litigation
Beginning in 2014, a number of lawsuits were filed in various state
and federal courts in the US against HSBC Bank USA, as a trustee of
more than 280 mortgage securitisation trusts, seeking unspecified
damages for losses in collateral value allegedly sustained by the
trusts. Nearly all of these lawsuits have either been settled or
dismissed; one action remains pending in a New York state court.
Based on the facts currently known, it is not practicable at this
time for HSBC to predict the resolution of this matter, including
the timing or any possible impact on HSBC, which could be
significant.
HSBC Bank USA and certain of its affiliates were named as
defendants in a mortgage loan repurchase action brought by the
trustee of a mortgage securitisation trust in New York state court
that sought unspecified damages and specific performance. The
action has been dismissed, and the plaintiff's appeal has been
denied. This matter is now closed.
Mexican government bond litigation
HSBC Mexico S.A. and other banks are named as defendants in a
consolidated putative class action pending in the US District Court
for the Southern District of New York alleging anti-competitive
conduct related to Mexican government bond transactions between
2010 and 2014 and seeking unspecified damages. The defendants,
including HSBC Mexico S.A., have reached a settlement in principle
with the plaintiffs to resolve this matter. The settlement, the
impact of which is not significant and is fully provisioned, is
subject to court approval.
Other regulatory investigations, reviews and
litigation
HSBC Holdings and/or certain of its affiliates are also subject to
a number of other enquiries and examinations, requests for
information, investigations and reviews by various tax authorities,
regulators, competition and law enforcement authorities, as well as
legal proceedings including litigation, arbitration and other
contentious proceedings, in connection with various matters arising
out of their businesses and operations.
At the present time, HSBC does not expect the ultimate resolution
of any of these matters to be material to the Group's financial
position; however, given the uncertainties involved in legal
proceedings and regulatory matters, there can be no assurance
regarding the eventual outcome of a particular matter or
matters.
8 Events after the balance sheet date
On 10 July 2026, HSBC Latin America Holdings (UK) Limited completed
the sale of HSBC Bank (Uruguay) S.A. to a subsidiary of BTG Pactual
Holding SA. Prior to their derecognition at completion, as at 30
June 2026, the balances that were classified as held for sale were
$2.3bn in assets and $2.1bn in liabilities. On completion, we
recycled immaterial foreign currency translation and other reserves
losses to the income statement.
On 24 July 2026, HSBC Insurance (Asia Pacific) Holdings Limited, an
indirect wholly-owned subsidiary of HSBC Holdings plc, entered into
an agreement to sell its Singapore insurance business, HSBC Life
(Singapore) Pte. Ltd, to Allianz Asia Holdings Pte. Ltd. The
transaction, which remains subject to regulatory approval, is
expected to generate an estimated pre-tax gain on disposal of
$1.8bn at the HSBC Group consolidated level, inclusive of related
transaction and migration costs, goodwill write-off and recycling
of foreign currency translation reserves, which will be recognised
largely upon completion, expected in the first half of
2027.
On 31 July 2026, HSBC Bank Australia Limited ('HSBC Australia'), an
indirect wholly-owned subsidiary of HSBC Holdings plc, entered into
an agreement to sell its portfolio of home and personal loans to
Virgo BidCo Pty Ltd, an entity wholly-owned by funds managed by
affiliates of Blackstone Inc. The disposal group, comprising
$25.3bn in assets at 30 June 2026, is expected to be classified as
held for sale in the third quarter of 2026. The transaction, which
remains subject to regulatory and competition approvals, is
expected to complete in the first half of 2027, and to generate an
immaterial loss, inclusive of related costs and write-offs. The
remainder of HSBC Australia's retail banking business will be wound
down in a phased manner over the next 18 months. HSBC Australia's
CIB, Asset Management and Private Banking businesses will be
consolidated into The Hongkong and Shanghai Banking Corporation
Limited Sydney Branch, subject to regulatory approval, simplifying
HSBC's entity footprint. We expect to incur $0.3bn in associated
restructuring costs and write-offs. Following disposal and
wind-down actions, including the transfer of certain mortgage
securitisation-related roles held by HSBC Australia, cumulative
foreign currency translation reserves are expected to be recycled
to the income statement. As at 30 June 2026, foreign currency
translation reserve losses stood at $0.3bn.
On 2 August 2026, HSBC Bank Egypt S.A.E., an indirect subsidiary of
HSBC Holdings plc, entered into a binding agreement to sell its
retail banking business to Emirates NBD Egypt (S.A.E), a direct
subsidiary of Emirates NBD Bank PJSC. The transaction, which
remains subject to regulatory approval, is expected to complete in
the second half of 2027 and to generate an estimated pre-tax gain
of $0.3bn, inclusive of related transaction and migration costs and
write-offs, that will be recognised largely upon completion. The
disposal group, comprising $0.4bn in assets and $2.8bn in
liabilities at 30 June 2026, is expected to be classified as held
for sale in the third quarter of 2026.
A second interim dividend for 2026 of $0.10 per ordinary share in
respect of the financial year ending 31 December 2026 was approved
by the Directors on 4 August 2026, as described in Note 3 of
the Interim Report 2026. On 4 August 2026, HSBC Holdings announced
its intention to initiate a share buy-back to purchase its ordinary
shares up to a maximum consideration of $1bn, which is expected to
commence shortly after the release of our 1H26 results and complete
by our third quarter 2026 results announcement.
|
|
9 Capital structure
|
Capital ratios
|
|
|
||
|
|
At
|
|||
|
|
30 Jun 2026
|
31 Dec
2025
|
||
|
|
%
|
%
|
||
|
Common
equity tier 1 ratio
|
14.1
|
14.9
|
|
|
|
Tier 1 ratio
|
16.7
|
17.3
|
|
|
|
Total capital ratio
|
19.7
|
20.5
|
|
|
|
Total regulatory capital and risk-weighted assets
|
|
|
||
|
|
At
|
|||
|
|
30 Jun 2026
|
31 Dec
2025
|
||
|
|
$m
|
$m
|
||
|
Common
equity tier 1 capital
|
127,692
|
132,593
|
|
|
|
Additional tier 1 capital
|
23,652
|
20,804
|
|
|
|
Tier 2 capital
|
27,432
|
28,974
|
|
|
|
Total regulatory capital
|
178,776
|
182,371
|
|
|
|
Risk-weighted assets
|
906,417
|
888,647
|
|
|
|
Leverage ratio
|
|
|
||
|
|
At
|
|||
|
|
30 Jun 2026
|
31 Dec
2025
|
||
|
|
$bn
|
$bn
|
||
|
Tier 1 capital (leverage)
|
151.3
|
153.4
|
|
|
|
Total leverage ratio exposure
|
3,076.2
|
2,877.1
|
|
|
|
|
%
|
%
|
||
|
Leverage ratio
|
4.9
|
5.3
|
|
|
|
|
10 Statutory accounts
The information in this news release is unaudited and does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006. The statutory accounts of HSBC Holdings plc
for the year ended 31 December 2025 have been delivered to the
Registrar of Companies in England and Wales in accordance with
section 447 of the Companies Act 2006. The Group's auditor,
PricewaterhouseCoopers LLP ('PwC') has reported on those accounts.
Its report was unqualified, did not include a reference to any
matters to which PwC drew attention by way of emphasis without
qualifying its report and did not contain a statement under section
498(2) or (3) of the Companies Act 2006.
The information in this news release does not constitute the
unaudited interim condensed consolidated financial statements which
are contained in the Interim Report 2026. The Interim Report 2026
was approved by the Board of Directors on 4 August 2026. The
unaudited interim condensed consolidated financial statements
included in the Interim Report 2026 have been reviewed by the
Group's auditor, PwC, in accordance with International Standard on
Review Engagements (UK) 2410, 'Review of Interim Financial
Information Performed by the Independent Auditor of the Entity'
issued by the Financial Reporting Council for use in the United
Kingdom. The full report of its review, which was unmodified, is
included in the Interim Report 2026.
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11 Dealings in HSBC Holdings listed securities
HSBC has policies and procedures that, except where permitted by
statute and regulation, prohibit it undertaking specified
transactions in respect of its securities listed on The Stock
Exchange of Hong Kong Limited ('HKEx'). Except for dealings as
intermediaries or as trustees by subsidiaries of HSBC Holdings, or
in relation to HSBC Holdings ordinary share buy-backs, neither HSBC
Holdings nor any of its subsidiaries has purchased, sold or
redeemed any of its securities listed on HKEx during the half-year
ended 30 June 2026.
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12 Earnings release and final results
An earnings release for the three-month period ending 30 September
2026 is expected to be issued on 27 October 2026. The results for
the year to 31 December 2026 are expected to be announced on 23
February 2027.
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13 Corporate governance
We are subject to corporate governance requirements in both the UK
and Hong Kong. Throughout the six months ended 30 June 2026, we
complied with the applicable provisions of the 2024 UK Corporate
Governance Code, effective 1 January 2025 and also the requirements
of the Hong Kong Corporate Governance Code with the exception of
Provision 24 of the UK Corporate Governance Code in relation to the
Group Chairman being a member of the Group Audit Committee. Brendan
Nelson will step down as Chair of the Group Audit Committee, and
Richard Meddings will be appointed Chair of the Group Audit
Committee, following publication of the Interim Report 2026. The UK
Corporate Governance Code is available at www.frc.org.uk and the
Hong Kong Corporate Governance Code is available at
www.hkex.com.hk.
The Board has codified obligations for transactions in Group
securities in accordance with the requirements of the UK Market
Abuse Regulation and the rules governing the listing of securities
on the HKEx, save that the HKEx has granted waivers from strict
compliance with the rules that take into account accepted practices
in the UK, particularly in respect of employee share
plans.
All Directors have confirmed that they have complied with their
obligations in respect of transacting in Group securities
throughout the period.
There have been no material changes to the information disclosed in
the Annual Report and Accounts 2025 in respect of the remuneration
of employees, remuneration policies, bonus and share option plans
and training schemes. Details of the number of employees are
provided on page 24 of the Interim Report 2026.
The Board of Directors of HSBC Holdings plc as at the date of this
announcement comprises: Brendan Robert Nelson*, Georges Bahjat
Elhedery, Geraldine Joyce Buckingham†, Wei Sun
Christianson†, Rachel Duan†, Dame Carolyn Julie
Fairbairn†, James Anthony Forese†, Steven Craig
Guggenheimer†, Manveen (Pam) Kaur, Dr José Antonio Meade
Kuribreña†, Richard Henry Meddings†, Kalpana
Jaisingh Morparia†, Eileen K Murray† and Swee Lian
Teo†.
* Non-executive Group Chairman
† Independent non-executive Director
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14 Interim Report 2026
The Interim Report 2026 will be made available to shareholders on
or about 22 August 2026.
Copies of the Interim Report 2026 and this news release may be
obtained from Global Communications, HSBC Holdings plc, 8 Canada
Square, London E14 5HQ, United Kingdom; from Communications (Asia),
The Hongkong and Shanghai Banking Corporation Limited, 1 Queen's
Road Central, Hong Kong; or from US Communications, HSBC Bank USA,
N.A., 1 West 39th Street, 9th Floor, New York, NY 10018, USA. The
Interim Report 2026 and this news release may also be downloaded
from the HSBC website, www.hsbc.com.
A Chinese translation of the Interim Report 2026 is available upon
request from Computershare Hong Kong Investor Services Limited,
Rooms 1712-1716, 17th Floor, Hopewell Centre, 183 Queen's Road
East, Hong Kong.
The Interim Report 2026 will be available on The Stock Exchange of
Hong Kong Limited's website www.hkex.com.hk.
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15 Cautionary statement regarding forward-looking
statements
This news release may contain projections, estimates, forecasts,
ambitions, targets, commitments, opinions, prospects, results,
returns and forward-looking statements with respect to the
financial condition, results of operations, capital position,
environmental, social and governance ('ESG')- related matters,
strategy and business of the Group which can be identified by the
use of forward-looking terminology such as "may", "will", "should",
"expect", "anticipate", "project", "estimate", "seek", "intend",
"target", "plan", "believe", "potential" or "reasonably possible"
or the negatives thereof or other variations thereon or comparable
terminology (together, "forward-looking statements"), including the
strategic priorities and any financial, investment and capital
targets and any ESG ambitions, targets and commitments described
herein.
Any such forward-looking statements are not a reliable indicator of
future performance, as they may involve significant stated or
implied assumptions and subjective judgements which may or may not
prove to be correct. There can be no assurance that any of the
matters set out in forward-looking statements are attainable, will
actually occur or will be realised or are complete or accurate. The
assumptions and judgments may prove to be incorrect and involve
known and unknown risks, uncertainties, contingencies and other
important factors, many of which are outside the control of the
Group.
Actual achievements, results, performance or other future events or
conditions may differ materially from those stated, implied and/or
reflected in any forward-looking statements due to a variety of
risks, uncertainties and other factors including, without
limitation, those which are referable to general market or economic
conditions, regulatory and government policy changes, continued
volatility in trade and tariff policies, increased volatility in
interest rates and inflation levels and other macroeconomic risks,
geopolitical tensions such as the Russia-Ukraine war, the conflict
in the Middle East or any potential military action or conflict
elsewhere, specific economic developments, such as the uncertain
performance of the commercial real estate sector and the
residential property sector in the Chinese mainland and Hong Kong,
or the efficacy of the Group's actions in managing and mitigating
ESG-related risks, and in progressing towards the Group's ESG
ambitions, targets and commitments, technology and cybersecurity
risks (including risks relating to deployment of artificial
intelligence), sanctions compliance risks, and regulatory
enforcement actions.
Any such forward-looking statements are based on the beliefs,
expectations and opinions of the Group at the date the statements
are made, and the Group does not assume, and hereby disclaims, any
obligation or duty to update, revise or supplement them if
circumstances or management's beliefs, expectations or opinions
should change. For these reasons, recipients should not place
reliance on, and are cautioned about relying on, any
forward-looking statements. No representations or warranties,
expressed or implied, are given by or on behalf of the Group as to
the achievement or reasonableness of any projections, estimates,
forecasts, ambitions, targets, commitments, prospects or returns
contained herein.
Additional detailed information concerning important factors,
including but not limited to ESG-related factors, that could cause
actual results to differ materially from this news release is
available in our Annual Report and Accounts for the fiscal year
ended 31 December 2025, filed with the Securities and Exchange
Commission (the "SEC") on Form 20-F on 26 February 2026, our 1Q
2026 Earnings Release, furnished to the SEC on Form 6-K on 5 May
2026 and our Interim Report 2026 for the six months ended 30 June
2026, which we expect to furnish to the SEC on Form 6-K on or
around 4 August 2026.
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16 Use of alternative performance measures
Our reported results are prepared in accordance with International
Financial Reporting Standards as issued by the International
Accounting Standards Board ('IFRS Accounting Standards') as
detailed in the interim condensed consolidated financial statements
starting on page 80 of the Interim Report 2026.
To measure our performance, we supplement our IFRS Accounting
Standards figures with non-IFRS Accounting Standards measures,
which constitute alternative performance measures under European
Securities and Markets Authority guidance and non-GAAP financial
measures defined in and presented in accordance with US Securities
and Exchange Commission rules and regulations. These measures
include those derived from our reported results that eliminate
factors that distort period-on-period comparisons. The 'constant
currency performance' measure used in this report is described
below. Definitions and calculations of other alternative
performance measures are included in 'Alternative performance
measures' on pages 41 to 44 of the Interim Report 2026, which is
available at www.hsbc.com. All alternative performance measures are
reconciled to the closest reported performance
measure.
The business segmental results are presented on a constant currency
basis in accordance with IFRS 8 'Operating Segments' as detailed in
Note 5: 'Segmental analysis' on page 89 of the Interim Report
2026.
Constant currency performance
Constant currency performance is computed by adjusting reported
results for the effects of foreign currency translation
differences, which distort period-on-period
comparisons.
We consider constant currency performance to provide useful
information for investors by aligning internal and external
reporting, and reflecting how management assesses period-on-period
performance.
Notable items
We separately disclose 'notable items', which are components of our
income statement that management considers as outside the normal
course of business and generally non-recurring in nature. Certain
notable items are classified as 'material notable items', which are
a subset of notable items. Categorisation as a material notable
item is dependent on the nature of each item in conjunction with
the financial impact on the Group's income statement.
Ñ For further information on our
use of alternative performance measures, see pages 20 and 41 of the
Interim Report 2026.
|
|
17 Certain defined terms
Unless the context requires otherwise, 'HSBC Holdings' means HSBC
Holdings plc and 'HSBC', the 'Group', 'we', 'us' and 'our' refer to
HSBC Holdings together with its subsidiary undertakings. Within
this document the Hong Kong Special Administrative Region of the
People's Republic of China is referred to as 'Hong Kong'. When used
in the terms 'shareholders' equity' and 'total shareholders'
equity', 'shareholders' means holders of HSBC Holdings ordinary
shares and those preference shares and capital securities issued by
HSBC Holdings classified as equity. The abbreviations '$m' and
'$bn' represent millions and billions (thousands of millions) of US
dollars, respectively.
|
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18 Investor Relations/Media Relations contacts
For further information contact:
Investor Relations Media Relations
UK - Alastair Ryan UK - HSBC Group Press Office
Telephone: +44 (0)7468 703 010 Telephone: +44 (0)20 7991
8096
Email: investorrelations@hsbc.com Email:
pressoffice@hsbc.com
Hong Kong - Yafei Tian Hong Kong - Aman Ullah
Telephone: +852 2899 8909 Telephone: +852 3941 1120
Email: investorrelations@hsbc.com.hk Email:
aspmediarelations@hsbc.com.hk
Please click on the link below to view the accompanying data
pack.
http://www.rns-pdf.londonstockexchange.com/rns/1203P_1-2026-8-4.pdf
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
HSBC
Holdings plc
|
|
|
|
|
|
|
By:
|
|
|
Name:
Angela McEntee
|
|
|
Title:
Group Company Secretary
|
|
|
|
|
|
Date:
04 August 2026
|