CCF 2001 Interim Results

HSBC Holdings PLC
14 August 2001


                           CCF 2001 INTERIM RESULTS



The process of integration of CCF into HSBC is almost complete. The alignment
of corporate and investment banking activities in HSBC and CCF has provided
major corporate clients with access to HSBC's worldwide network, and has
improved HSBC's and CCF's competitive position. Management responsibility for
HSBC's businesses in France, Spain, Italy, Belgium and the Netherlands has now
been transferred to CCF, and HSBC's hexagon symbol is used in all CCF network
offices.

In March 2001, CCF, as part of HSBC, acquired Banque Hervet. The integration
of Banque Hervet, with 86 offices and over 100,000 customers, will allow CCF
to strengthen its position in the wealth management and commercial banking
businesses in the Paris area and also in the central region of France. Since
becoming part of HSBC, Banque Hervet has contributed EUR24.3 million to CCF's
profit before tax and before amortisation of goodwill.

* Despite a less favourable economic and financial environment, CCF's results
for the half-year to 30 June 2001 improved when compared to the same period in
2000. On a like-for-like basis, taking account of corporate restructuring (the
transfer of CCF's operations in Brazil and its foreign branches to other HSBC
operations, the disposal of a large part of CCF Charterhouse's UK activities,
the acquisition of Banque Hervet and the integration of HSBC branches into
CCF), a change in management responsibility and some extraordinary items(1),
CCF's profit attributable to shareholders was EUR359 million in the first half
of 2001, an increase of 19.1 per cent compared with the first half of 2000.

* Although the slowdown in the equities market weakened related business
revenues, operating income increased by 4.7 per cent to EUR1,303 million
compared with the EUR1,244 million earned in the first half of 2000.

* Retail banking performance was good, with high levels of lending activity.
Average customer loans outstanding increased by 10 per cent(2) and by 14.7 per
cent for corporate lending within the CCF network. Sight deposits increased by
4.6 per cent.

* Corporate banking revenues continued to grow strongly (up 14 per cent
compared with first half of 2000), illustrating CCF's improved position with
its large corporate and institutional clients since joining the HSBC Group.

* Asset management revenues increased slightly despite poor market conditions
which had a negative impact on funds under management (EUR70 billion, down 7
per cent, mainly due to the decline in market values).

* Equity portfolio and private equity activities performed well.

* CCF's investment banking and markets and private banking businesses were
affected by market conditions. Revenues in these areas fell by 12 per cent
compared with the first half of 2000 on a like-for-like basis.

* In response to the challenging market conditions and poor economic
prospects, a number of cost containment measures have been implemented.
Operating expenses (EUR799 million) increased by only 1.2 per cent compared
with the first half of 2000, leading to an increase in operating profit before
provisions (EUR504 million) of 10.9 per cent on a comparable basis.

Comment by Charles de Croisset, Chairman of CCF:

'It has taken less than one year for CCF to almost complete its integration
into the HSBC Group. This integration is already bearing fruit and we hope to
see continuing benefits in the coming years.'

(1) These items mainly consist of capital gains or losses arising on external
disposals and transfers of businesses, and restructuring costs and provisions
for stock-related compensation costs given to employees of certain
subsidiaries (chiefly Framlington).

Before restatement, attributable profit amounts to EUR336 million, an increase
of 13.5 per cent compared with the first half of 2000.

(2) Excluding Banque Hervet