HSBC Q2 Results Down, Backs FY25 Outlook; Plans Up To $3 Bln Share Buyback

(RTTNews) - British lending major HSBC Holdings Plc (HSBA.L, HSBC) reported Wednesday lower profit in its second quarter, with weak revenues, and maintained fiscal 2025 outlook. Further, the company said it intends to initiate a share buy-back of up to $3 billion, which is expected to be completed by its third quarter 2025 results announcement.

In the second quarter, profit before tax decreased 29 percent year-over-year to $6.3 billion, primarily due to the recognition of dilution and impairment losses of $2.1 billion in BoCom.

Profit after tax was $4.9 billion, down 29 percent from last year. On a constant currency basis, profit before tax decreased 30 percent.

Revenue for the quarter fell by $0.1 billion from the prior year to $16.5 billion. On an adjusted basis, revenues increased primarily due to fee and other income growth in Wealth in IWPB and Hong Kong business segments.

Constant currency revenue excluding notable items rose by $0.8 billion.

Further, the Board approved a second interim dividend of $0.10 per share.

Looking ahead, the company continues to expect banking NII of around $42 billion in 2025.

The company still expects a mid-teens return on average tangible equity in each of the three years from 2025 to 2027 excluding notable items.

HSBC further said it continues to expect demand for lending to remain muted during 2025. However, over the medium to long term, the firm expects mid-single digit percentage growth for year-on-year customer lending balances.

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