HSBC Restarts Buyback of Up to USD 1 Billion as CEO Cites Capital Priorities
HSBC Holdings (00005) announced a share buyback of up to USD 1 billion, with Chief Executive Georges Elhedery saying capital will be prioritised to support business growth amid strong loan demand across segments. The bank will maintain its 50% payout ratio guidance. Chief Financial Officer Guo Peiying said second-quarter loan growth was the strongest in several quarters, with Hong Kong personal banking driving lending demand. HSBC also raised its net interest income guidance, citing a fund return rate of about 2.8%.
Chief Executive Georges Elhedery said capital will be prioritised to support business development, noting that several business segments are showing strong loan growth momentum and therefore require more capital allocation. HSBC will continue to use buybacks as a tool to adjust excess capital and maintain its 50% payout ratio guidance.