HSBC Likely to Post Sharply Higher Second-Quarter Net Profit

Dow Jones
08/03
 
 

HSBC Holdings is scheduled to report second-quarter results on Tuesday. Here is what you need to know:

 

NET PROFIT: HSBC's net profit is expected to have risen 61% to $7.36 billion for the three months ended June, according to a poll of analysts by Visible Alpha. The bank reported net profit of $4.58 billion in the year-earlier period, weighed by $2.1 billion of losses related to associate Bank of Communications.

The stock has risen about 36% in Hong Kong year to date, following a 61% increase in 2025. Continued hopes for the bank's restructuring efforts and eased fears about U.S.-China trade tensions have fueled the gains.

 

WHAT TO WATCH:

--First-quarter net interest income--the difference between interest earned on loans and that paid on deposits--rose 7.7% to $8.9 billion. Investors will be closely watching for signs of further growth in the bank's primary source of earnings.

--The London-based bank booked a roughly $300 million increase in credit allowances in the first quarter to reflect heightened uncertainty in the economic outlook following the onset of the Iran war. The bank's credit costs will remain key focus for investors, as economic uncertainty continues in many parts of the world amid the Middle East conflict.

--In October, HSBC said it would pause share buybacks for three quarters to rebuild a capital buffer against losses following its announcement of a plan to take private Hang Seng Bank, a smaller Hong Kong lender it had long controlled. Investors will pay attention to any updates on the potential buyback resumption.

 
 

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