HSBC first-half profit falls 26%, misses estimates

[HONG KONG] HSBC reported a 26 per cent slide in first-half pretax profit on Wednesday, missing analyst estimates, as impairments from its investment in Bank of Communications and exposure to Hong Kong real estate weighed.

Europe’s largest bank posted a pretax profit of US$15.8 billion for the first six months of this year, versus US$21.6 billion a year earlier.

The result compared with the US$16.5 billion average of broker estimates compiled by HSBC.

The lender took a further US$2.1 billion hit from its stake in Bank of Communications, following a US$3 billion impairment it took in February 2024 amid mounting bad loans in China.

Expected credit losses grew by US$900 million compared to the first half of last year to US$1.9 billion, the bank said, partly due to its exposure to Hong Kong’s troubled commercial real estate sector.

Europe’s biggest bank, with a market value of US$225 billion, announced a new share buyback worth up to US$3 billion, on top of a US$3 billion buyback programme announced earlier this year. REUTERS