HSBC BankCanada Interim Rslts

HSBC Hldgs PLC
25 July 2000


                       HSBC BANK CANADA
               2000 INTERIM RESULTS - HIGHLIGHTS


*  Net income was C$94 million for the half year ended 30 June
   2000, up 20.5 per cent over the same period last year.

*  Net income was C$47 million for the second quarter ended 30
   June 2000, up 17.5 per cent over the comparative quarter in
   1999.

*  Return on average common equity was 13.6 per cent for the
   second quarter 2000, and 16.2 per cent for the half year
   ended 30 June 2000.

*  Total assets of C$28.1 billion at 30 June 2000 (C$25.1
   billion at 31 December 1999).

*  Total capital ratio of 10.5 per cent and tier 1 capital
   ratio of 7.7 per cent at 30 June 2000 (10.9 per cent and 7.9
   per cent at 31 December 1999).

*  Funds under administration of C$14.3 billion at 30 June
   2000 (C$13.0 billion at 31 December 1999).


HSBC Bank Canada                   Highlights/Financial Commentary


HSBC Bank Canada reports improved results

Net income was C$47 million for the second quarter ended 30
June 2000, an increase of 17.5 per cent compared to C$40
million for the second quarter of 1999. Net income for the half
year ended 30 June 2000 was C$94 million, up 20.5 per cent over
the same period in 1999.

The results include the contribution from Republic National
Bank of New York (Canada) ('Republic Canada') following its
acquisition effective 1 April 2000. Republic Canada's three
branches in Montreal and Toronto, which had assets at 31 March
2000 of approximately C$1.3 billion, were successfully
integrated into HSBC's Canadian branch network.

Martin Glynn, President and Chief Executive Officer, said: 'Our
results met expectations. Our continued focus on wealth
management initiatives and cross selling of investment products
resulted in an increased contribution from personal financial
services. We also launched retail internet banking and are
developing additional functionality for both personal and
business users.

'The strong Canadian economy assisted good growth in our
commercial portfolio, and increased revenues from commercial
financial services, particularly in lending, cash management,
and import trade finance where HSBC continues to be the market
leader.'

'The successful integration of Republic Canada's branches into
our branch network enhanced our results. We look forward to
working with our new colleagues and customers.'


Financial commentary

Net interest income

Net interest income for the second quarter was C$164 million,
26.2 per cent higher than the same period in 1999. For the
first half of 2000, net interest income increased 20.2 per cent
to C$316 million over the same period in 1999. Growth in the
commercial loan portfolio came from a buoyant economy and the
acquisition of Republic Canada. Increases in prime and base
lending rates, a continued focus on loan pricing and a strong
contribution from loan fees included in interest income also
enhanced earnings. In addition, net interest income benefited
by C$8 million in the first half from the repayment of C$270
million of subordinated debentures in December 1999. These were
replaced by preferred shares as part of a capital restructuring
programme.

Other income

Other income of C$118 million for the second quarter and C$243
million for the first six months was 16.8 per cent and 25.3 per
cent higher respectively than the same periods in 1999. The
contribution from wealth management initiatives, including
brokerage commissions and mutual funds, increased significantly
over 1999. The second quarter contribution was lower than the
exceptional levels in the first quarter of 2000 which was
driven by buoyant equity markets. Corporate finance revenues
also benefited from the exceptional conditions of the first
quarter of 2000. The acquisition of Republic Canada increased
business opportunities, particularly in trade finance and
personal banking, which complemented HSBC's existing
activities. There were smaller increases in revenues from other
commercial services, including bankers' acceptance and cash
management fees which increased as clients took advantage of
good economic conditions.

Volatile currency markets resulted in increased foreign
exchange trading revenues over the same period in 1999. This
was offset by unfavourable treasury trading resulting from
increases in interest rates and a lower contribution from
equity structured trading revenues.

Non-interest expenses

Non-interest expenses increased by 20.5 per cent to C$194
million for the second quarter and 21.5 per cent to C$385
million for the first half, compared to the same periods in
1999. These increases were primarily due to the acquisition of
Republic Canada and included amortisation of identifiable
intangible assets and goodwill. Growth in performance-based
compensation and volume-related transaction expenses associated
with increases in revenues from brokerage operations also
pushed up expenses.

Efficiency ratios, excluding goodwill and intangible asset
amortisation of C$2 million, were 68.1 per cent in the second
quarter and 68.5 per cent for the first half, slight
improvements over the same periods in 1999.

Credit quality and provision for credit losses

The provision for credit losses of C$11 million for the second
quarter and C$22 million for the first half decreased compared
to the same periods in 1999 due to continuing stable credit
quality requiring lower general and specific provisions. During
the second quarter there was a small release of general
allowances although, as a result of the acquisition of Republic
Canada, they increased to C$220 million at 30 June 2000.

The combination of the HSBC Group's financial strength,
international diversity and a guarantee from HSBC Holdings plc
led rating agency DBRS to upgrade the ratings of HSBC Bank
Canada's Long Term Deposits and Senior Debt to AA(low), the
same rating as the five major Canadian banks, in the second
quarter.

Balance sheet

HSBC Bank Canada's assets grew by C$1.7 billion during the
second quarter and by C$3.0 billion since 31 December 1999. The
increase was primarily due to the acquisition of Republic
Canada which added C$1.3 billion in assets and strong organic
growth in commercial loans, fuelled by general economic
conditions.

Funds under administration (which includes mutual funds,
brokerage accounts and other off balance sheet accounts) grew
to C$14.3 billion at 30 June 2000, an increase of 10.2 per cent
from 31 December 1999. This increase contributed in part to the
growth in fee income.

Capital

The bank's issues of C$125 million non-cumulative preferred
shares and C$200 million of innovative asset trust securities
was successfully completed on 28 June 2000. Immediately
following, C$270 million of class 2 preferred shares were
redeemed after declaring a dividend of C$11 million. This is
expected to improve net income attributable to common
shareholders because the weighted average after tax cost of the
recent issues is approximately 5.1 per cent compared to 8.5 per
cent for the class 2 preferred shares that were redeemed.

On 21 July 2000 the board approved a dividend of C$0.39 per
share on class 1 preferred shares series A payable on 2 October
2000 for shareholders of record on 15 September 2000.

Shareholder information

HSBC Bank Canada, an indirectly-held, wholly-owned subsidiary
of HSBC Holdings plc, has more than 140 offices. With over
5,000 offices in 80 countries and territories and assets of
US$569 billion at 31 December 1999, the HSBC Group is one of
the world's largest banking and financial services
organisations.

Copies of the Interim Report will be sent to shareholders
during August 2000.

This news release may contain forward-looking statements,
including statements regarding the business and anticipated
financial performance of HSBC Bank Canada. These statements are
subject to a number of risks and uncertainties that may cause
actual results to differ materially from those contemplated by
the forward-looking statements. Some of the factors that could
cause such differences include legislative or regulatory
developments, competition, technological change, global capital
market activity, changes in government monetary and economic
policies, changes in prevailing interest rates, inflation
levels and general economic conditions in geographic areas
where HSBC Bank Canada operates.


HSBC Bank Canada                                             Highlights
 

                                 Quarter ended         Half year ended
Figures in C$ millions     30 June  31 March  30 June  30 June  30 June
(except per share amounts)    2000      2000     1999     2000     1999

Earnings

Net interest income            164       152      130      316      263 
Net income                      47        47       40       94       78 
Net income per common share   0.13      0.17     0.14     0.30     0.28 

Financial ratios (%)
Return on average common ^   13.61     18.92    18.36    16.21    18.38 
  equity
Return on average assets      0.52      0.72     0.60     0.62     0.60 
Net interest margin           2.69      2.64     2.22     2.68     2.28 
Efficiency ratio ^^           68.1      69.0     69.7     68.5     69.4 
Provision for credit
  losses/average loans
  and acceptances             0.21      0.23     0.25     0.22     0.29 
Other income/total income     41.8      45.1     43.7     43.5     42.5 

^    After declaration of a dividend on class 2 preferred
     shares of $11 million in the first half of June 2000. If a
     dividend on class 2 preferred shares had been declared on
     a quarterly basis, return on average common equity for the
     second and first quarters of 2000 would have been 15.87
     per cent and 16.70 per cent respectively.
^^   Excluding amortisation of goodwill and intangible assets


                                At 30 June   At 31 December   At 30 June
Figures in C$ millions                2000             1999         1999

Financial position
Total assets                         28,107          25,051       25,473
Total loans                          19,232          17,130       17,679
Total deposits                       22,367          20,170       20,494
Shareholders' equity                  1,182           1,252          895

Funds under administration           14,334          13,013       10,623

Capital ratios (%)
Total capital                          10.5            10.9         10.1
Tier 1 capital                          7.7             7.9          5.6


HSBC Bank Canada         Consolidated Statement of Income (Unaudited)


                                  Quarter ended             Half year ended
Figures in C$ millions     30 June  31 March  30 June      30 June  30 June
(except per share amounts)    2000      2000     1999         2000     1999

Interest and dividend income

Loans                          347       304      291          651      586
Lease financing                  7         7        6           14       13
Securities                      42        36       46           78       94
Deposits with regulated
  financial institutions        32        41       25           73       50
Total interest income          428       388      368          816      743

Interest expense
Deposits                      (257)     (229)    (228)        (486)    (459)
Debentures                      (7)       (7)     (10)         (14)     (21)
Total interest expense        (264)     (236)    (238)        (500)    (480)

Net interest income            164       152      130          316      263

Provision for credit
  losses                       (11)      (11)     (12)         (22)     (28)

Net interest income after
  provision for credit 
  losses                       153       141      118          294       235

Other income
Investment and securities
  services                      52        68       35          120        68
Deposit and payment
  services                      15        13       13           28        26
Lending fees                     4         4        4            8         9
Bankers' acceptance,
  letter of credit and
  guarantee fees                14        12       11           26        23
Trading revenue                 20        17       24           37        44
Other                           13        11       14           24        24
Total other income             118       125      101          243       194

Net interest and other
  income                       271       266      219          537       429

Non-interest expenses
Salaries and employee
  benefits                    (100)     (101)     (86)        (201)     (167)
Premises and equipment         (29)      (28)     (26)         (57)      (52)
Other                          (65)      (62)     (49)        (127)      (98)
Total non-interest
  expenses                    (194)      (191)   (161)        (385)     (317)

Income before provision
  for income taxes              77         75      58          152       112
Provision for income taxes     (30)       (28)    (18)         (58)      (34)
Net income                      47         47      40           94        78
Preferred share dividends      (11)         -       -          (11)        -

Net income attributable to
  common shares                 36         47      40           83        78

Net income per common
  share                       0.13       0.17    0.14         0.30      0.28


HSBC Bank Canada                 Condensed Consolidated Balance Sheet
                                                          (Unaudited)


                                At 30 June  At 31 December    At 30 June
  Figures in C$ millions             2000             1999          1999

  Assets

  Cash and deposits with Bank
    of Canada                         218              341           141

  Deposits with regulated
    financial institutions          1,330            1,954         1,288
                                    1,548            2,295         1,429

  Investment securities             3,288            2,437         2,925
  Trading securities                  462              410           386
                                    3,750            2,847         3,311

  Assets purchased under reverse
    repurchase agreements             415              378           275

  Loans
    Businesses and government      11,362            9,634         9,614
    Residential mortgage            6,065            5,769         6,411
    Consumer                        2,094            2,014         1,965

  Allowance for credit losses        (289)            (287)         (311)
                                   19,232           17,130        17,679 

  Customers' liability under        2,002            1,705         1,657
    acceptances
  Land, buildings and equipment       125              124           114
  Other assets                      1,035              572         1,008
                                    3,162            2,401         2,779
  Total assets                     28,107           25,051        25,473

  Liabilities and shareholders' equity

  Deposits
  -  Regulated financial
      institutions                    663            1,303         1,996
  -  Individuals                   11,582           10,858        10,298
  -  Businesses and governments    10,122            8,009         8,200
                                   22,367           20,170        20,494

  Acceptances                       2,002            1,705         1,657
  Assets sold under repurchase
    agreements                         25              179           106
  Other liabilities                 1,906            1,323         1,677
  Subordinated debt                   395              392           614
  Minority interests                  230               30            30
                                    4,558            3,629         4,084

  Shareholders' equity
  -  Preferred shares                 125              270             -
  -  Common shares                     75               75            75
  -  Contributed surplus              165              165           165
  -  Retained earnings                817              742           655
                                    1,182            1,252           895

  Total liabilities and
    shareholders' equity           28,107           25,051        25,473


  HSBC Bank Canada    Condensed Consolidated Statement of Cash Flows
                                                         (Unaudited)


                                                 Half-year ended
 Figures in C$ millions                    30 June 2000   30 June 1999

 Cash flows from operating activities               109             44

 Cash flows from (used in) financing activities   1,032           (263)

 Cash flows used in investing activities         (1,748)           (91)

 Increase (decrease) in cash and cash
   equivalents                                     (607)          (310)
 
 Cash and cash equivalents, beginning of
   period                                         2,092          1,436

 Cash and cash equivalents, end of period         1,485          1,126