CCF Results (1/1)

HSBC Holdings PLC
05 August 2002

The following is an English translation of the results news release issued in
French by CCF, HSBC Holdings plc's subsidiary in France.

                            CCF 2002 INTERIM RESULTS

Despite the very tough financial market environment and uncertain economic
conditions, CCF maintained its profit growth in the first half of 2002.

Attributable profit was €418.9 million, an increase of 24.6 per cent on the
first half of 2001.

This figure includes the effect of numerous reorganisations 1 in CCF's business
operations between the first half of 2001 and the first half of 2002. Restated
for these changes and for some exceptional items 2, the underlying attributable
profit of ongoing businesses managed by CCF was €340.7 million, up 9.8 per cent
from the first half of 2001. The rise in net profit was achieved despite weak
earnings of only €24 million from portfolio management activities, due to poor
equity market performance, compared with profits of €116 million from this
business for the same period in 2001.

Two years after joining the HSBC Group, CCF is making good progress with its
strategic objective of becoming one of France's leading banks in its core
businesses and supporting the HSBC Group's strategy in the eurozone.

CCF's integration into the HSBC Group has already brought major successes in the
Corporate, Investment Banking and Markets businesses. In two years, revenues in
Corporate Banking have increased by 20 per cent on a like-for-like basis and
HSBC CCF ranked first in the European league table for euro corporate bond
issues for UK and French issuers. CCF has also increased corporate finance
revenues and substantially improved its position in the primary equity market.

The integration is also reaping rewards in other businesses, with, for example,
the creation of an 'international banking centre'. This is tailored to the needs
of international customers and offers French customers the HSBC Group's Premier
service, a service offered to HSBC's most valued personal customers around the
world.

CCF continues to expand through selective acquisitions. After acquiring Banque
Hervet in 2001, CCF acquired Banque Worms branches in eleven major provincial
French cities on 1 July 2002, thereby strengthening its network.



1     Details of which are set out in Note ^ .

2     These consist mainly of capital gains on the transfers mentioned, along
with restructuring costs and provisions for contractual commitments to
subsidiaries' employees.

Using the resources of the HSBC Group - one of the world's largest banking and
financial services organisations - and its own resources, CCF was able to exceed
its economic profit growth target in its core businesses in the first half of
2002. This target involves doubling economic profit in core businesses every
five years.

Amongst CCF's main businesses, performance from Personal Financial Services
(PFS) and Commercial Banking was particularly strong, with operating income up
9.3 per cent and operating profit before provisions up 28.5 per cent on a
like-for-like basis. There was strong growth in both the CCF network (operating
profit up 20.7 per cent) and its regional banking subsidiaries (operating profit
before provisions up 34.2 per cent). Banque Hervet, acquired 15 months ago, made
an after-tax profit of €27.1 million. These performances were due to firm
business volumes - average loans outstanding rose by 4 per cent and average
sight deposits by 10 per cent compared to the first half of 2001 - and robust
margins.

Performance was also reflective of the strong impetus in the CCF Group's
networks, which are winning new customers due to the build-up in sales forces,
the quality of the multichannel offering and new products developed in
conjunction with HSBC, such as the international banking centre and cash
management services.

Corporate, Investment Banking and Markets (CIBM) showed resilience in this
difficult market environment, with operating income globally down by only 4.0
per cent and operating profit before provisions by only 7.8 per cent, on a
like-for-like basis. The brokerage subsidiary suffered from a 30 per cent
decrease in revenues, but maintained a positive result after tax, while several
businesses continued to generate revenue growth. Notably, revenues increased in
Corporate Banking by 5 per cent, Treasury Capital Markets by 2 per cent and
Corporate Finance was up by 48 per cent, all largely due to CCF's integration
into the HSBC Group.

Asset Management and Private Banking revenues were flat on a like-for-like
basis, with a 10 per cent like-for-like fall in funds under management to €57
billion, due to market falls. Operating profits decreased by 4.4 per cent.
Despite the adverse environment, both Asset Management and Private Banking had
positive net new business acquired during this half-year.

In addition, strict cost and credit risk control has been maintained. Underlying
operating expenses increased only by 1.6 per cent, on a like-for-like basis.

Two new independent directors were appointed, on the occasion of the Board
meeting held on 30 July 2002: Mr. Martin Bouygues, Chairman and CEO of Bouygues
Group, and Mr. Igor Landau, CEO of Aventis. They replace Mr. Bertrand Collomb,
and Mr. Manfred Zobl. The Board of Directors would like to express its sincere
thanks to both outgoing directors for the important contribution they have made
to CCF over the last few years.

Commenting on the results, Charles de Croisset, Chairman of CCF, said: "Once
again, CCF has shown the strength of its ability to generate profits. At the
same time, we are continuing to develop new projects as part of the HSBC Group,
which gives us exciting prospects for the future."

Main items of consolidated profit and loss accounts

Published results
Figures in € millions                          H1 2002         H1 2001        % Change      H2 2001       % Change
Operating income                               1,239.0         1,302.0            -4.8%     1,154.0          +7.4 %
Operating expenses                              (777.3)         (797.2)           -2.5%      (829.9)         -6.4 %
Operating profit before provisions               461.7           504.8            -8.5%       324.1         +42.5 %
Net provisions for loan losses, off-
 balance sheet, other items                       32.9            57.3              ns        (56.5)          ns
Profit attributable to shareholders              418.9           336.4           +24.6%       180.6        +131.9 %



Restated results (business managed by CCF) ^

Figures in € millions                     H1 2002         H1 2001          % Change         H2 2001        % Change
Operating income                           1,183.5          1,170.3            +1.1 %       1,080.5            +9.5 %
Operating expenses                          (776.3 )         (764.2 )          +1.6 %        (799.7 )          -2.9 %
Operating profit before provisions           407.2            406.1            +0.3 %         280.8          +45.10 %
Net provisions for loan losses, off-
balance sheet, other items                    30.8 ^^          57.1              ns           (61.2 )            ns
Profit attributable to shareholders          340.7            310.4            +9.8 %         169.0          +101.7 %




Analysis of restated figures by business lines (business managed by CCF)

Figures in € millions                                          H1 2002           H1 2001           % Change
Operating income
PFS and Commercial Banking                                       736.6             673.7               +9.3 %
CIBM (incl. eurozone)                                            241.2             251.4               -4.0 %
Asset Management and Private Banking                             127.0             125.3               +1.4 %
Other activities and miscellaneous (1)                            78.7             119.9                 ns
Total                                                          1,183.5           1,170.3

Operating profit before provisions
PFS and Commercial Banking                                       225.6             175.6              +28.5 %
CIBM (incl. eurozone)                                             99.1             107.5               -7.8 %
Asset Management and Private Banking                              29.4              30.7               -4.4 %
Other activities and miscellaneous (1)                            53.1              92.3                 ns
Total                                                            407.2             406.1


(1) Portfolio activities return on free capital, miscellaneous items.


^ Results for H1 2001 and H1 2002 have been restated in order to integrate on
a like-for-like basis many changes in the scope of businesses managed by CCF
(disposal of Credit International d'Egypte; transfer of CCF Brazil, several
private banking subsidiaries, and various businesses in the UK to other HSBC
entities; the removal of UK asset management business and the integration of
Banque Hervet and certain of the HSBC eurozone branches for the full six month
period) and the restatement of some exceptional items (mainly capital gains and
losses on the transfers mentioned, along with restructuring costs and provisions
on contractual commitments granted to some subsidiaries' employees).

^^ In 2002, as in 2001, net provisions for loan losses were reduced by
provision recoveries, mainly in respect of country risk provisions and
recoveries of loan loss provisions in Societe Marseillaise de Credit. Excluding
these items loan provisions were €15.7 million.




                      This information is provided by RNS
            The company news service from the London Stock Exchange