HSBC Holdings reported profit before tax of $19.5 billion for the first half of 2026, up $3.7 billion or 23% year-on-year, as its Asia-heavy franchise continued to convert higher rates and trading activity into stronger earnings. The London-headquartered group released its interim results on 4 August, offering shareholders one of the clearest reads yet on how the bank is navigating the rate environment.

Reported revenue rose $3.6 billion, or 11%, to $38.2 billion, boosted by market-related items that swing between periods. On the more closely watched underlying measure that strips out notable items, revenue was up 6% year-on-year, also at $38.2 billion, while profit before tax excluding notables rose 6% to $20.4 billion, giving a cleaner picture of run-rate performance.

UNDERLYING GROWTH RUNS AT 6%

The gap between the 23% headline profit growth and the 6% underlying figure reflects the impact of prior-year charges and disposal effects that flatter this year's comparison. HSBC and its analysts typically anchor on the ex-notables numbers when assessing run-rate performance, and the 6% pace is more representative of the underlying earnings trajectory.

On that basis, the 6% rise in both underlying revenue and underlying pre-tax profit points to a franchise still growing, even after two years of profit records driven by the sharp rise in global interest rates. Management has been signalling for several quarters that the tailwind from higher rates would ease, placing more emphasis on fee income, wealth and transaction banking.

At $20.4 billion, first-half underlying pre-tax profit already accounts for a substantial share of what a full year in the previous cycle might have produced, underlining how much the group's earnings base has been reset since 2022, when global central banks began raising policy rates in earnest.

REPORTED REVENUE HITS $38.2 BILLION

Reported revenue of $38.2 billion, up 11%, is one of the highest first-half top-line prints in HSBC's recent history. The 6% underlying rise indicates the majority of that gain is genuine, rather than a function of one-off gains, though the sizeable gap between reported and underlying figures underscores the importance of looking through headline noise.

HSBC's business mix – dominated by Asia and by transaction-heavy segments such as global payments, foreign exchange and trade finance – tends to amplify moves in cross-border activity. The group has also been re-shaping its geographic footprint, with disposals in Canada, France and Argentina completed over the past two years and further reorganisation still in progress across other markets.

The interim results were published on the group's website alongside a quick-read investor summary. Chief executive Georges Elhedery and finance director Pam Kaur will present the figures to analysts and investors in the customary post-results conference call, taking questions on capital plans and business mix.

The 23% rise in headline profit will be closely parsed by shareholders assessing HSBC's capacity for continued buybacks and dividends, which have been a central pillar of the group's shareholder proposition through its recent earnings upcycle and remain a key focus for institutional investors weighing the stock. Capital return has been one of the defining features of HSBC's story over the past several years, and interim results are a natural moment for the board to update investors on its intent.