HSBC reported a significant rise in profits for the first half of 2026, posting pre-tax earnings of £14.5 billion, a 23 percent increase from the same period last year. The bank also announced plans for a £740 million share buy-back, underscoring its strong financial position.

This robust performance came amid a broader trend of improved profitability among major UK lenders, with Lloyds, Barclays, and NatWest all recording year-on-year profit growth. HSBC attributed much of its earnings boost to increased interest and fee income, particularly in wealth management and banking services. However, the bank also experienced higher costs driven by inflation and investments in technology. Despite these expenses, efforts to streamline operations led to a reduction of £1.12 billion in costs. The firm reported expected credit losses totaling £1.79 billion, which included provisions related to ongoing geopolitical uncertainties and increased trade tariffs.

HSBC’s chief executive, Georges Elhedery, emphasized the importance of strong, well-capitalized banks for supporting economic growth. “UK growth requires strong banks,” he said, highlighting the resilience of the economy. The bank also reported positive lending trends, with loans to small and medium-sized enterprises rising 11 percent over the past year. Additionally, the number of new business banking customers increased by 48 percent to approximately 680,000.

The strong earnings reports from UK banks have reignited calls from the Trades Union Congress to raise the corporation tax surcharge on banks from the current rate of 3 percent to at least 8 percent. The union estimates this increase could generate an additional £9 billion in revenue over four years. However, HSBC’s leadership cautioned against measures that could hamper the capacity of banks to fund business investment and economic expansion.

Separately, Metro Bank recorded its most profitable half-year since its founding 16 years ago, with pre-tax profits rising 41 percent to £61 million. The challenger bank also saw a 43 percent increase in lending to £6.2 billion, driven by a 73 percent surge in specialist mortgage lending to £2.2 billion. Metro Bank is continuing to expand its physical branch network, currently numbering 78 locations. CEO Daniel Frumkin highlighted the importance of the bank’s face-to-face, relationship-based approach in sustaining growth.