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Investing.com-- HSBC’s (LON:HSBA) (HK:0005) first-half profit rose 23% as higher net interest income and wealth management fees offset rising credit impairment charges, while the Asia-focused lender reaffirmed its medium-term profitability targets and announced a new $1 billion share buyback.

The London-headquartered bank on Tuesday reported profit before tax of $19.5 billion for the six months ended June 30, up from $15.8 billion a year earlier, while revenue increased 11% to $37.7 billion.

Second-quarter pre-tax profit climbed 60% to $10.1 billion.

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Growth was driven by stronger banking net interest income, higher fee income from wealth management and wholesale transaction banking, and increased customer activity, although expected credit losses rose to $2.4 billion in the first half from $2.0 billion a year earlier.

The charge included a $400 million fraud-related securitisation exposure in the UK, provisions tied to Hong Kong commercial real estate and allowances related to the ongoing conflict in the Middle East.

HSBC declared a second interim dividend of $0.10 per share and said it intends to launch a share buyback of up to $1 billion, expected to be completed before its third-quarter results.

Looking ahead, HSBC said it remains confident of achieving its target of return on average tangible equity of at least 17% in 2026, 2027 and 2028, excluding notable items.

It also maintained its target of year-on-year revenue growth through 2028 and a 50% dividend payout ratio.

The bank now expects banking net interest income of at least $46 billion in 2026, reflecting a more favourable interest-rate outlook, while continuing to forecast credit losses equivalent to around 45 basis points of average customer loans and target-basis operating expense growth of about 1% this year.

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