HSBC reported a constant currency profit before tax of $10.1 billion for the first quarter of 2026, excluding notable items. This figure remained broadly stable compared to the same period in 2025. This performance was primarily fueled by robust revenue growth in Wealth and higher banking net interest income (NII), though these gains were largely offset by increased expected credit losses (ECL) and rising operating expenses.
On a reported basis, profit before tax for 1Q26 was $9.4 billion, reflecting a slight decrease of $0.1 billion compared to 1Q25. Profit after tax stood at $7.4 billion, down $0.2 billion from the prior year. The bank's banking NII, excluding funding costs associated with trading and fair value income, increased by $0.7 billion to $11.3 billion. Overall NII saw a rise of $0.6 billion compared to 1Q25, despite an adverse $0.1 billion one-off item in 1Q26, mainly attributed to deposit balance growth and the reinvestment of a structural hedge at higher yields.
Despite higher operating expenses and an adverse impact from notable items, the bank benefited from strong fee and other income growth in its Wealth businesses, particularly in IWPB and Hong Kong, as well as the increased banking NII. The annualized return on tangible equity (RoTE) for 1Q26 was 17.3%. The Board has approved a first interim dividend for 2026 of $0.10 per share.
Separately, HSBC has previously announced substantial share buyback programs. For the first half of a recent year, HSBC reported a pretax profit of $21.6 billion, beating analyst estimates. The bank also authorized a $3 billion share buyback, following a previous $5 billion buyback earlier in the year, and an additional $2 billion buyback in a separate announcement. These buybacks highlight the bank's strategy to return capital to shareholders, alongside significant dividend payouts.
