HSBC · NYSE
Consensus is $2.21 EPS for Sep 2026 across 1 estimates, ranging $2.21 to $2.21.
No consensus figures were on file, so the quarter cannot be assessed as a beat or miss against expectations. HSBC delivered stronger momentum in the second quarter, with revenue growth accelerating to 7% from 6% in the first quarter and profit before tax rising 13% to USD 10.3 billion. Banking NII was the largest earnings driver, benefiting from growth in both deposits and loans and a supportive rate environment. Wealth was especially strong, with fee and other income up 21% to USD 2.8 billion, while Wholesale Transaction Banking accelerated to 7% growth. All four businesses grew revenue and each produced annualized ROTE above 18%, according to management. Group annualized ROTE was 19.5%, and CET1 increased to 14.1% despite USD 20 billion of loan growth. Cost growth was contained at 1%, offsetting 5% inflation, investment and other cost increases with simplification savings. Credit costs remained significant at USD 1.1 billion, including USD 0.2 billion tied to Hong Kong commercial real estate.
Management raised full-year Banking NII guidance to at least USD 46 billion, citing balance-sheet growth, a supportive rate environment and reinvestment of USD 50 billion of maturing structural hedge assets yielding 2.8% in the second half. The guidance includes buffers for HIBOR and foreign-exchange volatility, including weaker sterling. HSBC reiterated around 45 basis points for full-year credit costs, around 1% 2026 cost growth, a 50% dividend payout ratio and annual ROTE of at least 17%. Revenue growth is still expected to rise to 5% by 2028. Simplification savings were increased to USD 2 billion, to be actioned by year-end and delivered in full in 2027. No 2027 or 2028 cost guidance was given.
