HSBC Holdings raised its key performance target on Tuesday as its first-half profit surged more than two-fold, supported by rising interest rates around the world and the planned sale of its French unit.
The bank also announced fresh buybacks of up to $2 billion, which starts immediately.
HSBC raised its near-term return on tangible equity goal, a key performance target, to at least mid-teens for 2023 and 2024, from a previous target of at least 12% from 2023 onwards. It reported return on tangible equity of 9.9% for 2022.
Europe’s largest bank with a market value of $162 billion posted a pretax profit of $21.7 billion for the first six months this year, versus $9.2 billion a year earlier.
The results were better than the $20.9 billion mean average estimate of brokers compiled by HSBC.
The London-headquartered bank said it would pay an interim dividend of 10 cents per share.
Despite the surge in profit, HSBC warned of pain to come for many customers given an uncertain economic outlook, particularly in Britain where a combination of the highest inflation rate among the G7 group of countries and steadily rising interest rates are squeezing households.