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HSBC Raises Earnings Target After Strong Annual Profit Beat

by THEFUTURE.TEAM

March 1, 2026

HSBC Holdings raised its medium-term earnings target after reporting annual results that exceeded market expectations. The bank said ongoing restructuring and cost discipline are helping reposition the group for stronger profitability and more focused growth.

Profit Beat and Strategic Repositioning

Despite $4.9 billion in one-off charges, HSBC reported pretax profit of $29.9 billion for the year, about $1 billion above analyst expectations. Management said the performance reflects progress in simplifying operations and strengthening core business areas. CEO Georges Elhedery said the bank is becoming more focused and operationally efficient as it adapts to changing market conditions.

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Overhaul Completion Paves Way For Enhanced Profitability

HSBC has largely completed a multi-year restructuring program that included reorganizing operations along East-West lines, exiting smaller investment banking activities in the U.S. and Europe, and reducing senior management layers. The group confirmed 11 global business exits as part of this process. Following the restructuring, HSBC raised its return on tangible equity target to 17% or higher by 2028, up from its previous mid-teens objective.

Impact Of One-Off Charges

Results were weighed down by several exceptional items. A $2.1 billion write-off linked to the bank’s stake in China’s Bank of Communications reflected dilution and ongoing weakness in China’s property market. Pretax profit in mainland China declined 66% to $1.1 billion. Additional legal provisions totalling $1.4 billion and restructuring costs of $1 billion also affected annual performance.

Realizing Synergies And Preparing For The Future

HSBC moved to strengthen its Asian footprint by completing a $13.7 billion transaction to take Hang Seng Bank private. The bank expects the integration to generate around $900 million in combined pretax revenue and cost synergies by the end of 2028, while restructuring costs are projected at approximately $600 million. Market reaction has been positive. Shares rose 2.5% in Hong Kong following the announcement, while the London-listed stock gained around 50% during 2025 and an additional 10% year-to-date, bringing HSBC’s market capitalization close to $300 billion.

Investor Outlook And Strategic Investments

While investors welcomed the results, some analysts remain cautious about the bank’s projection of only a 1% increase in costs for 2026. Continued competition and the need for investment in technologies such as AI could place pressure on cost discipline. HSBC said its updated strategy focuses on improving returns, maintaining operational efficiency, and supporting long-term growth in key markets.

The Future Forbes Realty Global Properties

by News Editor

August 24, 2026

Courts Are Still Applying Old Copyright Rules To AI

AI companies train models on enormous amounts of published material, including books, articles and academic research. Whether using that content without authors’ permission violates copyright law remains unresolved.

Much of the debate centres on fair use, which allows copyrighted material to be used without permission in certain circumstances. Courts consider factors such as the purpose of the use, how much material was involved and its impact on the original market.

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Anthropic Case Sets An Important Precedent

A major case involving Anthropic and a group of authors provided one of the clearest rulings so far. Judge William Alsup found that using copyrighted books to train AI models was lawful, comparing the process to people reading and studying literature before creating something new.

Anthropic was nevertheless ordered to pay $1.5 billion in a settlement. The penalty concerned books the company had obtained from illegal online libraries rather than the AI training itself.

For AI companies, that distinction could prove significant because it separates studying copyrighted material from directly copying it.

Competition Could Be The Key Issue

A case involving Thomson Reuters and Ross Intelligence offers a different perspective. A court ruled that Ross could not claim fair use after using Reuters’ copyrighted material to develop a competing AI-powered legal research platform.

The decision suggests courts may be less willing to consider AI training fair use when copyrighted content is used to build a product that directly competes with the original.

For authors, an unresolved question is whether AI-generated content should be considered competition for the works used to train these models.

The Law Has Yet To Catch Up

US copyright law predates generative AI by decades, leaving courts to apply old principles to new technology. Questions also remain over copyright protection for AI-generated works. In Thaler v. Perlmutter, a court ruled that material created entirely by AI cannot receive copyright protection.

Major AI companies remain involved in copyright litigation, and different courts could reach different conclusions. For now, there is no universal rule: the legality of AI training will depend on the circumstances of each case and how courts ultimately interpret copyright and fair use.