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HSBC Announces Fresh $1 Billion Share Buyback After Profit Beats
['Harry Wilson', 'Denise Wee', 'Tue', 'August At Am Bst', 'Min Read']
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(Bloomberg) -- HSBC Holdings Plc announced a fresh stock buyback as it reported second-quarter earnings that beat estimates, marking a resumption of the program it suspended after its acquisition of Hang Seng Bank Ltd.
Earnings were driven by $2.6 billion in "notable items" as well as growth in banking and wealth income.
Last week, rival Standard Chartered Plc reported better-than-estimated second-quarter profit and a record first-half performance driven by its expanding wealth business, allowing the lender to announce a new $1 billion share buyback.
Still, Beijing's actions have stoked fears that wealth growth could falter if citizens face greater restrictions when moving money offshore.
Bloomberg Intelligence analysts estimate that, under a worst-case scenario, new money inflows could plunge as much as 30% this year.