HSBC (0005) reiterated that there will be no layoff plan arising from the privatization of Hang Seng Bank, and the group will not integrate the customer-facing frontline business divisions of its Hong Kong business and Hang Seng Bank.
Chief executive George Elhedery noted that HSBC HK and Hang Seng Bank are integrating functional capabilities, back-office technology, and product manufacturing, while retaining the two banks' independent operations and brands.
Regarding Beijing's curbs on illegal cross-border investment, Elhedery said the bank has not seen a change in the behaviour of new client onboarding, with 640,000 new clients recorded across the HSBC and Hang Seng brands for the first six months of this year.
The group remains confident for the medium- to long-term outlook on the strong commitment of authorities in Hong Kong and the mainland to ensuring the city plays its role as a leading international financial center, he added.
In terms of artificial intelligence development, Elhedery said HSBC is preparing to establish an AI research institute in Hong Kong that focuses on research, capability building, ecosystem development, and the commercialization of innovative technologies.
The group currently has a team consisting of 150 AI experts in the city, and the team's expansion work is ongoing, he added.
For the first half of 2026, HSBC's Hong Kong business reported a 13.9 percent year-on-year growth in pre-tax profit to US$5.14 billion (HK$40.09 billion) in the first half of the year, accounting for more than 26.3 percent of the group's total on a constant currency basis.
Revenue increased 6.07 percent to US$8.13 billion, while expected credit losses narrowed by 37 percent to US$540 million during the period.
The lender recorded HK$200 million in expected credit losses related to the Hong Kong commercial real estate sector during the period, primarily reflecting pressure on the valuations of retail and office properties in non-core districts, said chief financial officer Pam Kaur.
By legal entities, the Hongkong and Shanghai Banking Corporation's pre-tax profit jumped 37.4 percent to US$12.9 billion, accounting for 66.1 percent of the group's figure.
Revenue also climbed 16.9 percent to US$20.27 billion.
