HSBC Holdings plc - ADR

Strong momentum in 2Q and 1H results (growth + profitability) - 2Q (ex notable items): Revenues +7% YoY (constant currency) to $19bn; PBT +13% to $10.3bn; annualized RoTE 19.5% (group 19.1% for 1H). - Balance sheet growth: Deposits +$46bn (about +8% YoY), loans +$20bn (about +6% YoY); 1H deposits +$129bn (+8%), 1H loans +$55bn (+6%). - Good: Broad-based performance—all 4 businesses grew revenues and delivered annualized RoTE >18%, above the group target (≥17%).

Investor-friendly capital returns resumed + dividend policy reaffirmed - Dividend: Another $0.10 quarterly interim dividend (so $0.20 for 1H). - Buybacks: Restarted with up to $1bn announced today (after pausing 3 quarters due to Hang Seng Bank privatization). - Capital planning: CET1 14.1%, up 10 bps vs Q1, after supporting ~$20bn loan growth; dividend payout target remains ~50% of earnings per share (excluding material notable items).

Strategy execution translating into capacity (savings + exits + simplification) - Organizational simplification savings upgraded: Target raised to $2bn (from $1.5bn), with $1.7bn already achieved (“action saves”) and restructuring costs $1.4bn lower than originally expected; remaining savings to be actioned before year-end (full delivery in 2027). - Business exits / divestments continue (creating redeployment capacity): 15 exits since 2025, including Singapore Insurance sale, Australia Retail exit, and Egypt retail banking sale (subject to approvals). - Good / opportunity: Management emphasized that these moves free capacity to invest in leading franchises while maintaining cost discipline.