HSBC Bnk Canada 2Q & Interims

HSBC HOLDINGS PLC
22 July 1999


                            HSBC BANK CANADA
              SECOND QUARTER 1999 RESULTS - HIGHLIGHTS

*  Consolidated net income was C$40 million for the quarter ended 30 June    
   1999, an increase of 3.0 per cent over the comparative quarter ended 
   31 July 1998.

*  Return on equity was 18.4 per cent for the three months ended 30 June 1999.

*  Total assets of C$25.5 billion at 30 June 1999.

*  Total capital ratio of 10.1 per cent, tier 1 capital ratio of 5.6 per cent 
   at 30 June 1999.

*  Funds under management of C$10.6 billion at 30 June 1999.

HSBC Bank Canada reports net income of C$40 million

HSBC Bank Canada's net income was C$40 million for the three months ended 
30 June 1999, an increase of 3.0 per cent over the comparative quarter 
ended 31 July 1998.

The retention of capital to finance growth following recent acquisitions and
to increase the bank's capital ratios resulted in a fall in the return on
equity compared to the comparative periods in 1998. Capital ratios were raised
to help meet the higher industry-wide standards required by the Office of the
Superintendent of Financial Institutions.

Net interest income for the second quarter of 1999 was higher than the
equivalent quarter ended 31 July 1998, as a result of loan growth and higher
levels of interest recoveries on non-performing loans which was offset by a
fall in net interest margin. The growth in the bank's loan portfolio,
particularly in commercial and personal consumer loans, was driven by a
combination of factors. These included new business gained, particularly in
the latter part of 1998, through previously-proposed consolidations in
Canadian financial services, and the acquisition of National Westminster Bank
of Canada.

The fall in net interest margin was due to a narrowing in spread as a result
of continuing competitive pressures and a change in funding mix. These were
only partially offset by an increased contribution from higher levels of net
free funds, mainly as a result of the acquisitions of Gordon Capital
Corporation and Moss, Lawson. In addition, a further C$383 million of
residential mortgages and personal loans were securitised during the quarter.

Other income was significantly higher than the comparative periods in 1998.
This was the result of the acquisitions which helped increase equity trading
income and securities transfer fees. Revenues generated from credit services
such as bankers' acceptances, letters of credit and guarantees remained
strong. Volatility in the financial markets contributed to the increase in
equity and foreign exchange revenues but had an adverse impact on the level of
corporate finance fees earned when measured against the comparative periods in
1998.

Higher operating expenses reflected the growth in HSBC Bank Canada's
operations, acquisitions made during the year and increased investment in new
business and delivery channels. In addition, costs were incurred in the
centralisation of some of the bank's operating functions which should provide
increased efficiencies and help improve customer services in the future.

On 21 June 1999, Hongkong Bank of Canada was renamed HSBC Bank Canada as part
of the global initiative by the HSBC Group to create a unified brand, using
the name HSBC and the Group's hexagon symbol as its marketing name everywhere
it operates.

Youssef Nasr, President and Chief Executive Officer, said: 'We are generally
satisfied with our results for the second quarter of 1999. Our name change
reflects the building of a global brand by HSBC and gives us a competitive
advantage in addition to our reputation for superior customer service. As a
full-service Canadian bank with access to HSBC's global resources, we can
bring the world to our customers.'

HSBC Bank Canada, an indirectly-held, wholly-owned subsidiary of HSBC Holdings
plc, has more than 140 offices. With over 5,000 offices in 79 countries and
territories and assets of US$483 billion at 31 December 1998, the HSBC Group
is one of the world's largest banking and financial services organisations.

HSBC Bank Canada                                               Highlights
___________________________________________________________________________

                                  Quarter ended       Six months ended 
                               30 June     31 July*   30 June   31 July*
                                  1999        1998       1999      1998
                                                                        
Earnings (C$ millions)                                                  

Net interest income                130         127        263       255 
Net income                          40          39         78        81 
                                                                        
Financial ratios (%)                 %           %          %         % 
Return on average equity                                                
  (annualised)                    18.4        21.0       18.4      22.4
Return on average assets                                                
  (annualised)                    0.60        0.61       0.60      0.65
Cost:income                       69.7        67.3       69.4      66.8 
Provision for credit                                                    
  losses/average assets            0.2         0.2        0.2       0.4
Other income/total income         43.7        36.2       42.5      35.9 
                                                                        
                                                           At        At
                                                      30 June   31 July 
                                                         1999      1998 
Financial position (C$ millions)                                      
Total assets                                           25,473    24,813 
Shareholder's equity                                      895       754 
                                                                       
Capital ratios (%)                                          %         % 
Total capital                                            10.1       9.5 
Tier 1                                                    5.6       5.0 
                                                                       
Other                                                                  
Number of employees (full-time equivalent basis)        4,931     4,537 

*   As a result of the change in year-end from 31 October to 
    31 December, effective from 1998, the comparative figures are
    those for the three or six month period ended 31 July 1998.

HSBC Bank Canada        Consolidated Statement of Income (Unaudited)
____________________________________________________________________

Figures in C$              Quarter ended            Six months ended    
millions (except      30 June       31 July       30 June       31 July 
per share amounts)       1999          1998          1999          1998 
                                                                        
                                                                       
Net interest income       130           127           263           255 
                                                                        
Provision for credit                                                    
  losses                  (12)          (11)          (28)          (48)
                          118           116           235           207   
                                                                         
Other income              101            72           194           143 
                                                                        
Net interest and other                                                  
  income                  219           188           429           350
                                                                        
Non-interest expenses    (161)         (134)         (317)         (266)
                                                                        
Net income before                                                        
  provision for
  income taxes             58            54           112            84 
                                                                        
Provision for income                                                    
  taxes                   (18)          (15)          (34)           (3)
                                                                        
Net income                 40            39            78            81 
                                                                        
Average number of                                                       
  shares outstanding 
  (in millions)           280           280           280           280 
                                                                        
Net income per common                                                   
  share                  0.14          0.14          0.28          0.29

HSBC Bank Canada                 Condensed Consolidated Balance Sheet
                                                          (Unaudited)
______________________________________________________________________

Figures in C$            At 30 June     At 31 July 
millions                       1999           1998
                                                              
Cash resources                1,429          1,443 
Securities                    3,311          3,668 
Loans                        17,679         17,333 
Other assets                  3,054          2,369 
                                                         
Total assets                 25,473         24,813 
                                                         
Demand                          827            905 
Notice                        3,864          3,614 
Fixed date                   15,803         16,417 
                                                         
Total deposits               20,494         20,936 
                                                         
Other liabilities             3,470          2,505 
Subordinated debt               614            618 
Capital and reserves            895            754 
                                                         
                              4,979          3,877 
                                                         
Total liabilities            25,473         24,813 
                                                         
HSBC Bank Canada      Condensed Consolidated Statement of Changes in
                                      Financial Position (Unaudited)          
_______________________________________________________________________

Figures in C$ millions       Quarter ended           Six months ended 
                           30 June    31 July        30 June  31 July 
                              1999       1998           1999     1998 
                                                                      
Cash resources provided                                             
from (used in) operating 
activities:
Net income                      40         39             78       81 
Adjustments:                                                         
  Provision for credit losses   12         11             28       48 
  Depreciation and amortisation  7          6             16       12 
  Other items, net             (67)      (254)          (142)    (207)
                                (8)      (198)           (20)     (66)
Cash resources provided                                              
from (used in) financing
activities:
 
Net change in deposits        (751)      (175)           (56)     334 
Net change in advances from                                          
  Bank of Canada                 -       (129)             -       (3)
Dividends paid                   -        (36)             -      (36)
                              (751)      (340)           (56)     295 
Cash resources provided                                              
from(used in) investing
activities:

Businesses acquired              -       (125)           (75)    (125)
Net change in securities       543       (472)           193     (529)
Net change in loans             33         80           (248)     (56)
Net change in land,                                                  
buildings and equipment         (7)       (10)           (16)     (16)
 
                               569       (527)          (146)    (726)
                                                                      
Net increase (decrease) in                                           
  cash resources              (190)    (1,065)          (222)    (497)
Cash resources in business                                           
  acquired at date of           
  acquisition                    -         80             14       80
Cash resources at beginning  
  of period                  1,619      2,428          1,637    1,860 
Cash resources at end of     
  period                     1,429      1,443          1,429    1,443 
                                    
Certain prior period amounts have been reclassified to conform
with the current period's presentation.