Key Takeaways
- HSBC (HSBC) reported a significant 26% drop in first-half pretax profit to $15.81 billion, missing analyst estimates for Q2.
- CaixaBank (CABK) exceeded expectations with a Q2 net income of €1.48 billion, surpassing the estimated €1.38 billion.
- Tesla (TSLA) has secured a substantial $4.3 billion deal with LG Energy (373220.KS) for lithium iron phosphate (LFP) batteries.
- A powerful 8.8 magnitude earthquake off Kamchatka, Russia, has triggered widespread tsunami warnings across the Pacific, including Japan and China.
Banking Sector Performance: HSBC Misses, CaixaBank Beats
HSBC (HSBC) announced a notable decline in its financial performance for the first half of 2025, with pretax profit falling by 26% to $15.81 billion. The bank's second-quarter pretax profit stood at $6.3 billion, missing analyst estimates of $6.99 billion. Revenue for Q2 also came in below expectations at $16.47 billion against an estimated $16.67 billion. The bank declared an interim dividend of $0.10 per share and maintained a CET1 Ratio of 14.6%, with an ECL Net Charge of $1.07 billion.
In contrast, Spanish lender CaixaBank (CABK) delivered strong Q2 2025 earnings, reporting a net income of €1.48 billion. This figure surpassed analyst estimates of €1.38 billion, indicating a robust performance. The bank's net interest income aligned with expectations at €2.64 billion. For the first half of the year, CaixaBank's net income reached €2.95 billion. The bank also reported solid capital and asset quality metrics, with a CET1 Capital Ratio of 12.5%, Return on Tangible Equity (ROTE) of 18.5%, and a Bad Loan Ratio of 2.3% at the end of June.
Tesla Secures Major Battery Supply Deal
Electric vehicle giant Tesla (TSLA) has entered into a significant $4.3 billion agreement with South Korean battery manufacturer LG Energy (373220.KS). The deal involves the supply of lithium iron phosphate (LFP) batteries, marking a crucial step for Tesla in securing its battery supply chain. This partnership represents the second major tie-up for Tesla in South Korea this month, highlighting the company's efforts to diversify its sourcing and potentially reduce reliance on Chinese imports due to tariffs. The LFP batteries are expected to be supplied from LG Energy's U.S. factory, with the contract spanning from August 2027 to July 2030, including an option for extension.
Pacific Region on Alert Following Powerful Kamchatka Earthquake
A powerful magnitude 8.8 earthquake struck off Russia's Kamchatka Peninsula, triggering widespread tsunami warnings and advisories across the Pacific. Russia's Geophysical Service confirmed that approximately 30 aftershocks, ranging in magnitude from 2 to 5, have been recorded since the main quake. The Japan Meteorological Agency has warned that the tsunami threat could persist for more than a day, with initial waves reaching coastal areas of Japan and Russia. China has also issued a yellow-level tsunami alert, warning of potential "disastrous impact" on its coastline. Evacuations have been ordered in various coastal regions, including parts of Japan, Russia, and Hawaii, as authorities urge residents to seek higher ground.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.