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HSBC Holdings Plc announced a new buyback program and painted a bullish outlook for its 2023 earnings, joining peers in benefiting from global rate rises that have been boosting income.
The London-based lender, which generates most of its income in Asia, will repurchase an additional $2 billion on top of a previous programme announced just three months ago, according to a second-quarter earnings statement.
HSBC also said it is now expecting net interest income for 2023 to be above $35 billion, up from more than $34 billion.
Net interest margin rose to 1.72% pushing pretax profits to $8.8 billion in the three months through June, beating a company-compiled analyst estimate of $7.96 billion.
“If you take one thing from today’s results, it’s our strategy is working,” Chief Executive Officer Noel Quinn said in a media call, later stressing to analysts that the bank’s wealth business continues to gather momentum, particularly in Asia.
HSBC is in the midst of a strategic repositioning of its business in a pivot toward Asia with more of the group’s resources focused on capturing growth in faster-growing markets.
At HSBC’s global banking and markets arm, debt capital markets revenues offset falls in its global foreign exchange and equities business.