HSBC (LON:HSBA) shares slipped 4.4% at the open on Wednesday after the bank reported a 27% fall in first-half profit. Despite the drop, it held its dividend and announced a fresh $3 billion share buyback, aiming to complete it before third-quarter results.
Revenue dropped 8.5% to $34.12 billion, margins narrowed, and expenses crept up, a combination that cut pretax profit to $15.81 billion from $21.56 billion a year earlier. Net interest income barely moved, down 0.5%, while the net interest margin fell to 1.57%, dragged by currency hits and the Argentina exit.
Yet HSBC’s capital position strengthened slightly, with the CET1 ratio edging up to 14.6%. Fee income offered a rare bright spot, rising 7.1% to $6.64 billion.
The bank acknowledged muted loan demand for 2025 but maintained confidence in longer-term lending growth and reaffirmed its medium-term capital and dividend payout targets.
HSBC is leaning on its scale, capital strength and shareholder payouts to keep investors onside, even as pressure on margins and top-line growth keeps rising.