The Hong Kong equity market’s financial sector remains resilient, as several banks and brokerages listed in the city have reported or forecast stronger-than-expected quarterly results in the latest earnings season.

The focus was on HSBC Holdings on Tuesday, as the global diversified banking titan posted a pretax profit of $19.5 billion for the first half of 2026, up $3.7 billion, or 23 percent, from a year earlier. The second quarter alone delivered $10.1 billion before taxes, an increase of more than 60 percent year-on-year, exceeding the widely held market expectation of about 50 percent growth.

First-half revenue increased by 11 percent to $37.7 billion compared with the same period last year, while net interest income (NII) improved 8 percent to $18.2 billion, driven by deposit balance growth and the benefit of reinvestments of the lender’s structural hedge at higher yields.

The London-based lender said the profit gain was primarily due to a year-on-year net favorable impact from notable items, as well as growth in banking net interest income, higher fees, and other income, primarily in wealth and wholesale transaction banking.

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It also attributed the increases to its robust Hong Kong business segments, which are “supported by higher customer activity”. The group’s regional subsidiary in Hong Kong, The Hongkong and Shanghai Banking Corp Ltd, contributed over 66 percent — $12.8 billion — to the banking group’s profit before tax, followed by HSBC UK Bank’s 20 percent.

“We grew our deposits franchise by $129 billion, and grew customer lending by $55 billion, where we are seeing improved lending demand in Hong Kong and consistent strong growth in the United Kingdom,” said group CEO Georges Elhedery.

Elhedery added that Hong Kong “remains front and center” in the growth of HSBC’s wealth business in Asia, and the group is confident in the opportunities that the city and the Chinese mainland provide.

Looking ahead, the lender remains confident that it will meet its goals for the year, including a return on average tangible equity of 17 percent or above, and expects banking NII of at least $46 billion for the whole year.

READ MORE: HSBC resumes buyback, ramps up cost saving after profit beat

HSBC Holdings on Tuesday also announced that its board has approved a second interim dividend of 10 US cents per share. The lender will also resume its share buyback with a plan of up to $1 billion, nine months after it was paused following its move to buy out minority investors in Hang Seng Bank in Hong Kong in October. The new buyback plan is expected to be completed by the third-quarter earnings announcement.

Kenny Tang Sing-hing, chairman of the Hong Kong Institute of Financial Analysts and Professional Commentators, is optimistic about the group’s stock performance. He said the group’s high earnings in its Hong Kong business division demonstrate that its concentration on the Chinese market is correct, and that momentum may continue to build.

The analyst added that the resumption of the long-anticipated buyback plan by many investors will likely boost the lender’s stock price.

The financial sector in Hong Kong stock market has remained resilient through the peak of earnings announcements. HSBC Holdings’ shares closed flat at HK$166.5 ($21.2) on the day, after once touching HK$169.7 — a 52-week high — during intraday trading.

Standard Chartered has maintained its upward run since its Hong Kong-listed stock hit an almost 19-year high on July 29 after unveiling a $1 billion buyback and a 20.4-cent interim dividend. The bank reported a first-half pretax profit of $4.7 billion, rising 9 percent year-on-year from $4.3 billion.

Meanwhile, CITIC Securities held firm on Tuesday, while China Merchants Securities gained 1.58 percent. CITIC Securities earlier projected its net profit attributable to shareholders to reach 23.3 billion yuan ($3.4 billion) for the first half, a 69.5 percent increase year-over-year. Meanwhile, China Merchants Securities forecasts net profit of 10 billion to 11 billion yuan over the period, spiking more than 90 percent.

Chen Fu, chief nonbanking financial analyst at GF Securities, said the brokerage sector is currently experiencing sustained upward momentum in earnings, with direct investment in innovation and technology and synergies with investment banking operations serving as key new sources of growth. Chen said these drivers could continue to lift investment returns across the sector.

Contact the writer at gabylin@chinadailyhk.com