Europe's largest bank posted a pretax profit of $19.5 billion for the first six months of this year, up 23% from $15.8 billion a year earlier and ahead of the $18.9 billion that analysts forecast.
HSBC's solid performance reflects the payoff of its Asian focus, where an overhaul targeting wealth and cross-border banking drove fee income growth alongside a favourable rate backdrop.
It also caps a strong earnings season for Europe's big banks, which have extended a more than two-year-long recovery thanks to a surge in trading activity and resilient interest income despite dips in central bank rates.
HSBC lifted its guidance for net interest income for this year, saying it now expects to exceed $46 billion, having previously said it would hit that level.
The lender announced a resumption of its share buybacks with an up to $1 billion plan, the first since it announced late last year it was taking smaller Hong Kong lender Hang Seng Bank private.
HSBC also set a second interim dividend of $0.1 per share, following a $0.1 payout in May.
The bank's Hong Kong-listed shares gained 0.8% to HK$169.5 after the earnings release, hitting a new high.
The half-year update from HSBC showed CEO Georges Elhedery continuing his strategy of streamlining the lender by exiting markets where it lacks scale, as the bank sold its Singapore insurance, Egypt retail banking and Australian mortgage businesses.
Wealth revenue in the first half grew 18% from a year ago, backed by strong growth from its Asian markets.
Rival Standard Chartered (STAN.L) also announced a forecast-beating first-half profit last week, powered by a push for fee income.
