HSBC reported more than doubled first half pretax profit of $21.7 billion and plans a new $2 billion share buyback program, as rising central bank interest rates boosted the bank's net interest income.
The robust results helped the British bank raise its return on tangible equity target to at least mid-teens for 2023 and 2024, up from 12% for this year.
CEO Noel Quinn warned "tougher times are ahead" for many customers due to higher interest rates and mounting economic uncertainty.
HSBC's results were driven by a near-40% jump in revenue from commercial banking and retail divisions, buoyed by higher lending margins. Net interest income is forecast to be above $35 billion this year, up from a previous estimate of $34 billion.
The bank aims to continue expanding in China despite its slowing economy. It won a fund distribution license last week.
HSBC, which generates two-thirds of revenue from Asia, is considering exiting up to a dozen countries as part of a global restructuring aimed at boosting profits. It announced plans to sell its Oman unit on Tuesday.
HSBC shares rose 2.7% on the news, outperforming the benchmark FTSE 100 index.
