3/3: Hang Seng 1H04 PT 1

HSBC Holdings PLC
02 August 2004


                               HANG SENG BANK LIMITED
                         2004 INTERIM RESULTS - HIGHLIGHTS

   •Operating profit before provisions up 0.4 per cent to HK$6,096 million
    (HK$6,073 million for the first half of 2003).

   •Operating profit up 22.1 per cent to HK$6,859 million (HK$5,617 million
    for the first half of 2003).

   •Pre-tax profit up 23.5 per cent to HK$7,323 million (HK$5,928 million for
    the first half of 2003).

   •Attributable profit up 24.4 per cent to HK$6,245 million (HK$5,022
    million for the first half of 2003).

   •Return on average shareholders' funds of 30.9 per cent (24.4 per cent for
    the first half of 2003).

   •Total assets of HK$503.9 billion, in line with 2003 year-end (HK$503.0
    billion at 31 December 2003).

   •Earnings per share up 24.3 per cent to HK$3.27 (HK$2.63 per share for the
    first half of 2003).

   •Second interim dividend of HK$1.10 per share; total dividends of HK$2.20
    per share for the first half of 2004 (HK$2.10 per share for the first half
    of 2003).

   •Total capital ratio of 12.8 per cent (13.2 per cent at 31 December 2003);
    tier 1 capital ratio of 11.4 per cent (11.3 per cent at 31 December 2003).

   •Cost:income ratio of 24.5 per cent (23.1 per cent for the first half of
    2003).

Hang Seng Bank attributable profit up 24.4 per cent to HK$6,245 million

Hang Seng Bank Limited (the bank) and its subsidiary and associated companies
(Hang Seng) reported an unaudited profit attributable to shareholders of
HK$6,245 million for the first half of 2004, a growth of 24.4 per cent compared
with the first half of 2003. Earnings per share of HK$3.27 was 24.3 per cent
higher than the first half of 2003.

Operating profit before provisions rose by HK$23 million, or 0.4 per cent, to
HK$6,096 million, attributable to a strong growth of 25.7 per cent in other
operating income, which outweighed a 9.8 per cent fall in net interest income
and an 8.6 per cent rise in operating expenses. Other operating income benefited
from the active stock market and positive investor sentiment, which boosted
revenue from brokerage, retail fund distribution and funds under management.
Life insurance also grew significantly in both market share and profitability,
reflecting the success of an innovative range of products designed to give
extended protection but with a shorter premium payment period. Net interest
income, however, was affected by the exceptionally low HK dollar interest rates
in the first half of the year which reduced deposit spreads, and the fierce
competition in the mortgage markets which negatively impacted margins.

Operating profit after provisions rose 22.1 per cent, benefiting from a release
of HK$763 million in provisions for bad and doubtful debts, compared with a
charge of HK$456 million for the same period last year. There was a net release
in specific provisions of HK$65 million, reflecting the reduction of credit
charge-offs, and an increase in recoveries from mortgages and commercial
customers. This was in line with the benign credit conditions during the first
half of the year as the economic recovery continued to take shape, with falling
unemployment, reduced levels of bankruptcies, and rising property prices. A
release of HK$698 million in general provisions reflects the result of a review
of the required provisions in light of historical loss experience, and the
improving credit environment as detailed above. Profit before tax amounted to
HK$7,323 million, which was HK$1,395 million, or 23.5 per cent, higher than the
first half of 2003, after accounting for the surplus on property revaluation.
Attributable profit, after taxation and minority interests, rose by HK$1,223
million, or 24.4 per cent. Excluding the impact of the release in general
provisions and the related deferred taxation, attributable profit for the first
half of 2004 increased by HK$647 million, or 12.9 per cent, over the first half
of 2003.

Compared with the second half of 2003, operating profit before provisions and
attributable profit rose by HK$694 million, or 12.8 per cent, and HK$1,728
million, or 38.3 per cent, respectively.

Total assets grew HK$0.9 billion, or 0.2 per cent, to HK$503.9 billion at 30
June 2004. Advances to customers recorded an encouraging growth of 7.5 per cent,
mainly in advances to the industrial and commercial sectors, trade finance and
personal loans. Private sector residential mortgages rose but those under the
suspended Government Home Ownership Scheme (GHOS) continued to fall. Customer
deposits, including certificates of deposit, fell by 2.6 per cent since the end
of 2003 in a persistently low interest rate environment.

Shareholders' funds (excluding proposed dividends) rose by HK$3,042 million, or
8.4 per cent, to HK$39,242 million at 30 June 2004, attributable to the rise in
retained profits and property revaluation reserves.

The return on average total assets was 2.5 per cent (2.1 per cent for the first
half of 2003). The return on average shareholders' funds was 30.9 per cent,
compared with 24.4 per cent in the first half of 2003 and 22.5 per cent in the
second half of 2003.

The advances to deposits ratio rose to 57.6 per cent at 30 June 2004 compared
with 52.2 per cent at 31 December 2003, reflecting the growth in customer
advances and a reduction in customer deposits during the first half of 2004.
Hang Seng continued to maintain a strong liquidity position, with the average
liquidity ratio for the first half of 2004 (calculated in accordance with the
Fourth Schedule of the Hong Kong Banking Ordinance) at 48.1 per cent (45.0 per
cent for the first half of 2003).

The total capital ratio at 30 June 2004 was 12.8 per cent (13.2 per cent at 31
December 2003) and the tier 1 capital ratio was 11.4 per cent (11.3 per cent at
31 December 2003).

The cost:income ratio was 24.5 per cent, compared with 23.1 per cent for the
first half of 2003.

The Directors have declared a second interim dividend of HK$1.10 per share,
which will be payable on Thursday, 2 September 2004 to shareholders on the
Register of Shareholders as of Tuesday, 24 August 2004. Together with the first
interim dividend of HK$1.10 per share, the total distribution for the first half
of 2004 will amount to HK$2.20 per share (HK$2.10 per share for the first half
of 2003).

Comment by David Eldon, Chairman

"Hang Seng's performance improved in the first half of 2004, supported by Hong
Kong's recovery from the economic low point of early 2003. Attributable profit
grew by 24.4 per cent, underpinned by growth in other operating income and the
release of provisions for bad and doubtful debts.

"Although interest margins remained depressed, an increase of 25.7 per cent in
other operating income more than offset the fall in net interest income.
Operating profit before provisions grew by 0.4 per cent.

"During the first half of 2004, we made a breakthrough in our mainland China
business through the acquisition of a 15.98 per cent interest in Industrial Bank
Co., Ltd. This strategic move opens the door for cooperation with a major
mainland joint-stock commercial bank and complements Hang Seng's mainland
network and business expansion.

"Buoyant exports and the revival in consumer spending will continue to support
Hong Kong's economy during the rest of the year. The pace of recovery will,
however, be dependent to a large extent on the macro-economic realignment
initiatives in mainland China and the strength of the recovery in the United
States. Against this backdrop, Hang Seng will continue to deliver growth through
service excellence, product diversification and cost efficiency."

Contents

The financial information in this news release is based on the unaudited
consolidated accounts of Hang Seng Bank Limited and its subsidiary and
associated companies for the six months ended 30 June 2004.

Highlights of Results and Chairman's Comment
Contents
Consolidated Profit and Loss Account (Unaudited)
Consolidated Balance Sheet (Unaudited)
Consolidated Statement of Changes in Equity (Unaudited)
Economic Profit (Unaudited)
Consolidated Cash Flow Statement (Unaudited)
Financial Review
        Net interest income
        Other operating income
        Operating expenses
        Provisions for bad and doubtful debts
        Profit on tangible fixed assets and long-term investments
        Taxation
        Earnings per share
        Dividends per share
        Segmental analysis
        Cash and short-term funds
        Placings with banks maturing after one month
        Certificates of deposit
        Securities held for dealing purposes
        Advances to customers
        Provisions against advances to customers
        Non-performing advances to customers and provisions
        Overdue advances to customers
        Rescheduled advances to customers
        Repossessed assets
        Segmental analysis of advances to customers by geographical area
        Gross advances to customers by industry sector
        Long-term investments
        Investments in associated companies
        Other assets
        Current, savings and other deposit accounts
        Deposits from banks
        Other liabilities
        Shareholders' funds
        Capital resources management
        Liquidity ratio
        Reconciliation of cash flow statement
        Contingent liabilities, commitments and derivatives
        Cross border claims
Additional Information
        Accounting policies
        Comparative figures
        Property revaluation
        Market risk
        Foreign currency positions
        Material related-party transactions
        Statutory accounts
        Ultimate holding company
        Statement of compliance
        Register of shareholders
        Proposed timetables for the remaining quarterly dividends for 2004
        News release

        Consolidated Profit and Loss Account (Unaudited)

                                     Half-year   Half-year   Half-year
                                         ended       ended       ended
Figures in HK$m                        30Jun04     30Jun03     31Dec03

Interest income                          5,871       6,662       6,184
Interest expense                        (1,160)     (1,442)     (1,225)
Net interest income                      4,711       5,220       4,959
Other operating income                   3,362       2,674       2,524
Operating income                         8,073       7,894       7,483
Operating expenses                      (1,977)     (1,821)     (2,081)
Operating profit before provisions       6,096       6,073       5,402
Provisions for bad and doubtful debts      763        (456)       (336)
Operating profit                         6,859       5,617       5,066
Profit on tangible fixed assets
  and long-term investments                339         341         120
Net surplus/(deficit) on
  property revaluation                     119         (48)         11
Share of profits of
  associated companies                       6          18          12
Profit on ordinary activities
  before tax                             7,323       5,928       5,209
Tax on profit on ordinary activities      (998)       (846)       (577)
Profit on ordinary activities
  after tax                              6,325       5,082       4,632
Minority interests                         (80)        (60)       (115)
Profit attributable to shareholders      6,245       5,022       4,517
Retained profits at beginning
  of period                             19,720      19,440      20,504
Transfer of depreciation to
  premises revaluation reserve              32          35          33
Realisation on disposal of premises
  and investment properties                110          23           -
Exchange and other adjustments              (6)         (1)         19
Dividends                               (4,206)     (4,015)     (5,353)
Retained profits at end of period       21,895      20,504      19,720

Figures in HK$

Earnings per share                        3.27        2.63        2.36
Dividends per share                       2.20        2.10        2.80

Consolidated Balance Sheet (Unaudited)

Figures in HK$m                   At 30Jun04   At 30Jun03   At 31Dec03

Assets
Cash and short-term funds             62,376       67,309       71,903
Placings with banks maturing
  after one month                      5,315       27,738       18,029
Certificates of deposit               31,478       29,625       28,683
Securities held for dealing
  purposes                             1,180        1,047        1,232
Advances to customers                246,779      226,171      229,466
Amounts due from immediate
  holding company and fellow 
  subsidiary companies                 5,777        7,596       13,715
Long-term investments                120,997       99,077      113,881
Investments in associated 
  companies                            2,183          675          549
Tangible fixed assets                 11,056        9,555        9,565
Other assets                          16,788       13,515       15,936
                                     503,929      482,308      502,959

Liabilities
Current, savings and
  other deposit accounts             428,370      419,083      439,913
Deposits from banks                    6,082        2,359        1,202
Amounts due to immediate
  holding company and fellow
  subsidiary companies                 7,530          757        2,412
Other liabilities                     19,878       18,850       19,147
                                     461,860      441,049      462,674

Capital resources
Minority interests                       724          529          644
Share capital                          9,559        9,559        9,559
Reserves                              29,683       27,156       26,641
Proposed dividends                     2,103        4,015        3,441
Shareholders' funds                   41,345       40,730       39,641
                                      42,069       41,259       40,285
                                     503,929      482,308      502,959

Figures in HK$

Net asset value per share              22.00        21.58        21.07

Consolidated Statement of Changes in Equity (Unaudited)

                                     Half-year   Half-year   Half-year
                                         ended       ended       ended
Figures in HK$m                        30Jun04     30Jun03     31Dec03

Shareholders' funds at
  beginning of period                   39,641      43,085      40,730

Increase/(decrease) in
  revaluation reserve of premises        1,126        (432)        147
Deferred tax adjustment on
  revaluation of premises                 (203)         17         (97)
Increase/(decrease) in revaluation
  reserve of investment properties
- bank and subsidiary companies            460        (288)         15
- associated company                         -           -        (125)
Long-term equity investment
  revaluation reserve
- unrealised (losses)/gains on
  revaluation                              (59)        (48)        458
- realisation on disposal                 (319)       (320)        (90)
Deferred tax adjustment on
  revaluation of long-term equity 
  investment                                 4           4          (6)
Exchange and other adjustments              (6)         (1)         19
Net gains/(losses) recognised in
  shareholders' funds for the period     1,003      (1,068)        321
Profit attributable to shareholders
  for the period                         6,245       5,022       4,517
Dividends                               (5,544)     (6,309)     (5,927)
Shareholders' funds at end of
period                                  41,345      40,730      39,641

Economic Profit (Unaudited)

Economic profit is calculated from profit after tax, adjusted for non-cash
items, and takes into account the cost of capital invested by Hang Seng's
shareholders. For the first half of 2004, the economic profit was HK$4,262
million, an increase of HK$1,460 million, or 52.1 per cent over the same period
last year. This was attributable to the growth of HK$1,054 million in profit
after tax (adjusted for non-cash items) and the reduction of HK$406 million in
cost of capital, following management's decision to revise the capital cost from
15.0 per cent to 11.5 per cent to reflect changes in long-term interest rates
and equity risk premia. The trend of economic profits in the analysis indicates
that Hang Seng continues to create value for its shareholders.

                           Half-year        Half-year         Half-year
                               ended            ended             ended
                             30Jun04          30Jun03           31Dec03
                        HK$m       %     HK$m       %      HK$m       %

Average invested
  capital             33,277           31,067            30,976

Return on invested
  capital^             6,164    37.3    5,110    33.2     4,539    29.1
Cost of capital       (1,902)  (11.5)  (2,308)  (15.0)   (2,340)  (15.0)
Economic profit        4,262    25.8    2,802    18.2     2,199    14.1

^Return on invested capital represents profit after tax adjusted for non-cash
 items.

Consolidated Cash Flow Statement (Unaudited)

                                                 Half-year   Half-year
                                                     ended       ended
Figures in HK$m                                    30Jun04     30Jun03

Net cash inflow from operating activities              826      10,113

Cash flows from investing activities
Net cash outflow from investment in
  an associated company                             (1,634)          -
Dividends received from an associated company            4          12
Purchase of long-term investments                  (30,345)    (58,294)
Proceeds from sale or redemption of
  long-term investments                             21,455      41,874
Purchase of tangible fixed assets                      (58)        (84)
Proceeds from sale of tangible fixed assets            141          36
Interest received from long-term investments         1,395       1,249
Dividends received from long-term investments           76          37
Net cash outflow from investing activities          (8,966)    (15,170)

Cash flows from financing activities
Dividends paid                                      (5,544)     (6,309)
Net cash outflow from financing activities          (5,544)     (6,309)

Decrease in cash and cash equivalents              (13,684)    (11,366)

Cash and cash equivalents at beginning of
  period                                            77,575      76,817
Effect of foreign exchange rate changes               (371)      1,729
Cash and cash equivalents at end of period          63,520      67,180

Financial Review

Net interest income
                                   Half-year   Half-year   Half-year
                                       ended       ended       ended
Figures in HK$m                      30Jun04     30Jun03     31Dec03

Net interest income                    4,711       5,220       4,959
Average interest-earning assets      470,141     437,045     456,749
Net interest spread                     1.95%       2.33%       2.09%
Net interest margin                     2.02%       2.41%       2.15%

Net interest income decreased by HK$509 million, or 9.8 per cent, compared with
the first half of 2003. Average interest-earning assets rose by HK$33.1 billion,
or 7.6 per cent. Net interest margin narrowed by 39 basis points to 2.02 per
cent with a reduction in net interest spread of 38 basis points to 1.95 per cent
and a fall in contribution from net free funds of one basis point to 0.07 per
cent.

Spreads on time deposits fell by 12 basis points, or HK$279 million, as in the
low interest rate environment, the bank was unable to reduce deposit rates paid
to customers. Compression in corporate loan margins and in average mortgage
yield accounted for a further fall of 14 basis points, or HK$325 million,
reflecting intense market competition. Lower spreads were also earned as higher
yielding debt securities repriced or matured, and were replaced with securities
at lower yields, contributing to a fall of HK$284 million, or 12 basis points.
Contribution from net free funds was lower by HK$23 million, or one basis point,
due to the fall in interest rates. The increase in average earning assets of 7.6
per cent, with average loan growth of 5.2 per cent, contributed HK$402 million,
that in part offset the above.

Compared with the second half of 2003, net interest income fell by HK$248
million, or 5.0 per cent, with a 13 basis point fall in net interest margin. Net
interest spread narrowed by 14 basis points, mainly due to the further
compression of spreads on time deposits, HIBOR-based lendings, debt securities
and interbank placings.

The average yield on the residential mortgage portfolio, excluding GHOS
mortgages and staff loans, fell to 192 basis points below BLR for the first half
of 2004, before accounting for the effect of cash incentive payments. This
compared with 170 basis points and 184 basis points below BLR in the first and
second half of 2003 respectively. Cash incentive payments on new mortgage loans
of HK$80 million have been written off against interest income in the first half
of 2004 compared with HK$45 million and HK$85 million in the first and second
half of 2003 respectively.

Other operating income

                                    Half-year   Half-year   Half-year
                                        ended       ended       ended
Figures in HK$m                       30Jun04     30Jun03     31Dec03

Dividend income:
- listed investments                       32          35          17
- unlisted investments                     44           2          38
                                           76          37          55
Fees and commissions:
- securities/stockbroking                 295         124         237
- retail investment products and
  funds under management                  871         725         271
- insurance                                54          45          37
- account services                        108         111         100
- remittance                               60          63          69
- cards                                   297         258         293
- credit facilities                       123         113         118
- import/export                           118         105         118
- other                                    67          56          61
Fees and commissions receivable         1,993       1,600       1,304
Fees and commissions payable             (170)       (159)       (190)
                                        1,823       1,441       1,114
Dealing profits:
- foreign exchange                        530         352         412
- securities and other
  trading activities                       28           9          34
                                          558         361         446
Insurance underwriting                    617         538         606
Rental income from
  investment properties                   102         104         106
Other                                     186         193         197
                                        3,362       2,674       2,524

Other operating income recorded strong growth of HK$688 million, or 25.7 per
cent, and contributed 41.6 per cent of total operating income, compared with
33.9 per cent for the first half of 2003.

Net fees and commissions rose 26.5 per cent, with strong growth of 137.9 per
cent in securities broking and related services, 20.1 per cent in retail
investment products and funds under management, 12.4 per cent in trade services
and 8.4 per cent in cards. Dealing profits grew 54.6 per cent, mainly in foreign
exchange income which included the profit on currency-linked investment products
provided to customers. Insurance commissions and underwriting profit together
grew by 17.8 per cent, reflecting strong growth in life insurance premiums.

Compared with the second half of 2003, other operating income grew by 33.2 per
cent, mainly attributable to the substantial growth of 221.4 per cent in income
from retail investment products and funds under management, 24.5 per cent in
securities/stockbroking and 25.1 per cent in dealing profits.

Analysis of income from wealth management business included in other operating
income

                                     Half-year   Half-year   Half-year
                                         ended       ended       ended
Figures in HK$m                        30Jun04     30Jun03     31Dec03

Investment income:
- retail investment products and
  funds under management                   871         725         271
- securities/stockbroking                  295         124         237
- margin trading                            33          28          27
                                         1,199         877         535
Insurance income:
- life (including embedded value)          466         365         486
- general and others                       150         158         124
                                           616         523         610
Total                                    1,815       1,400       1,145

Income from wealth management continued to grow strongly by 29.6 per cent to
HK$1,815 million, representing 54.0 per cent of total other operating income.
Income from investment services rose 36.7 per cent. Benefiting from the active
stock market and positive investor sentiment, securities accounts grew by 31.7
per cent since the end of 2003 and income from stockbroking and related
securities services rose by 137.9 per cent compared with the same period last
year. The increase of 20.1 per cent in income to HK$871 million and the rise of
24.3 per cent in sales of retail investment products reflected the successful
launch of new funds with capital protection and growth opportunities, and the
introduction of investment products designed to offer premium returns under the
low interest rate environment.

With further expansion of the Hang Seng series of investment funds and the
growth in private banking business, total funds under management grew by HK$12.6
billion, or 21.7 per cent, since the end of last year.

The satisfactory growth of 17.8 per cent in insurance income was mainly
attributable to life insurance which reported a growth of 115.7 per cent in
annualised premiums and 27.7 per cent in underwriting profit. This reflected the
success of promotions to increase cross-sales to Hang Seng's large customer
base.

Operating expenses

                              Half-year      Half-year      Half-year
                                  ended          ended          ended
Figures in HK$m                 30Jun04        30Jun03        31Dec03

Staff costs:
- salaries and other costs          953            908            952
- retirement benefit costs           84             91             92
                                  1,037            999          1,044
Depreciation                        153            171            158
Premises and equipment:
- rental expenses                    88             88             90
- other                             319            280            349
                                    407            368            439
Other operating expenses            380            283            440
                                  1,977          1,821          2,081

Cost:income ratio                  24.5%          23.1%          27.8%

Staff numbers by region^
                             At 30Jun04     At 30Jun03     At 31Dec03

Hong Kong                         7,233          7,026          7,076
Mainland and others                 242            148            204
Total                             7,475          7,174          7,280

^Full-time equivalent

Operating expenses increased by HK$156 million, or 8.6 per cent, to HK$1,977
million. Staff costs increased by HK$38 million, or 3.8 per cent, mainly due to
the increase in average headcount numbers and the provision for variable staff
bonuses. Depreciation reduced by HK$18 million, or 10.5 per cent, while premises
and equipment expenses rose by HK$39 million, or 10.6 per cent, mainly due to
the increase in IT expenditure. Other operating expenses rose by HK$97 million,
or 34.3 per cent, mainly in marketing expenditure and processing costs. The
increase in marketing expenditure was due to the relatively low marketing
activity level in the first half of 2003 during the SARS period.

Full-time equivalent staff (FTEs) increased by 195 during the first half of
2004, mainly to support the expansion of our mainland branches and personal
financial services business.

Compared with the second half of 2003, operating expenses fell by 5.0 per cent,
with reductions in staff costs, IT expenditure under premises and equipment
costs, and marketing expenditure under other operating expenses.

The cost:income ratio for the first half of 2004 was 24.5 per cent, 1.4
percentage points higher than the same period last year but 3.3 percentage
points lower than the second half of 2003.

Provisions for bad and doubtful debts

                             Half-year       Half-year       Half-year
                                 ended           ended           ended
Figures in HK$m                30Jun04         30Jun03         31Dec03

Net charge/(release) for
  bad and doubtful debts

Advances to customers
Specific provisions:
- new provisions                   242             666             501
- releases                        (252)           (182)           (133)
- recoveries                       (55)            (22)            (32)
                                   (65)            462             336
General provisions                (698)             (6)              -
Net (release)/charge to
  profit and loss account         (763)            456             336

Provisions for bad and doubtful debts showed a net release of HK$763 million
compared with a net charge of HK$456 million for the same period last year.
Specific provisions showed a net release of HK$65 million against a net charge
of HK$462 million for the same period last year. New and additional specific
provisions fell by HK$424 million, or 63.7 per cent, to HK$242 million, due to
the reduction in provisions on residential mortgages, credit card advances and
commercial banking customers. This was in line with the benign credit conditions
during the first half of the year as the economic recovery continued to take
shape, with falling unemployment, reduced levels of bankruptcies, and rising
property prices. Releases and recoveries rose by HK$103 million, or 50.5 per
cent, to HK$307 million, mainly from commercial banking accounts and residential
mortgages, reflecting improvement in the repayment capability of certain
corporate customers through disposal of assets and the increase in proceeds on
realisation of mortgage loan collateral. A release of HK$698 million in general
provisions was made in the current period (a release of HK$6 million for the
same period last year), reflecting the result of a review of the required
provisions in light of historical loss experience and the improving credit
environment.

Similar observations were derived when comparing with the second half of 2003,
which recorded a net charge in specific provisions of HK$336 million. New and
additional specific provisions fell substantially, mainly due to the decrease in
provisions on residential mortgages, credit card advances and commercial banking
customers. Higher releases and recoveries were recorded, mainly from residential
mortgages and corporate customers.

Profit on tangible fixed assets and long-term investments

                                              Half-year   Half-year   Half-year
                                                  ended       ended       ended
Figures in HK$m                                 30Jun04     30Jun03     31Dec03

Profit on disposal of long-term equity 
  investments
- realisation of amounts previously 
  recognised in revaluation reserves at 
  beginning of period                               291         358          60
- gain/(loss) arising in current period              28         (38)         30
                                                    319         320          90
Profit less loss on disposal of 
  held-to-maturity debt securities                    -          40           8
Profit less loss on disposal of tangible
  fixed assets                                       20           7          (4)
Provision for impairment of    
  long-term investments                               -         (26)         26
                                                    339         341         120

Profit on disposal of tangible fixed assets and long-term investments, mainly
from the sale of listed equities, was in line with the corresponding period in
2003.








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