HSBC Rep Bk Suisse results

HSBC Holdings PLC
24 May 2002


                         HSBC REPUBLIC BANK (SUISSE) SA


     NINE MONTHS RESULTS TO 31 DECEMBER 2001 AFTER CORPORATE RESTRUCTURING

HSBC Republic Bank (Suisse) SA is the principal subsidiary of HSBC Private
Banking Holdings (Suisse) SA. HSBC Private Banking Holdings (Suisse) SA was
created in September 2000 to integrate the HSBC Group's international private
banking businesses and improve client focus, while acknowledging the importance
of the Swiss market as a centre of international wealth management.


HSBC Republic Bank (Suisse) SA integrated HSBC's Hong Kong, Singapore and Nassau
private banking operations in the second quarter of 2001. Following this
reorganisation, HSBC Republic Bank (Suisse) SA confirms its position as the
largest foreign-owned bank in Switzerland, with shareholders equity of CHF1.8
billion.


As HSBC Republic Bank (Suisse) SA commenced operations in its new legal form on
1 April 2001, the following information reflects the financial results from that
date until 31 December 2001, a period of nine months. Financial information for
the previous HSBC Republic Bank (Suisse) SA for the nine-month period ended 31
December 2000 has been included for information purposes. It should be noted
that the private banking operations of the former Geneva branches of HSBC Bank
Middle East and HSBC Investment Bank were acquired on 1 July 2000 and were
included in the 2000 financial information from date of acquisition.

2001 Final results (nine months from 1 April 2001 to 31 December 2001) -
financial highlights

HSBC Republic Bank (Suisse) SA (new legal entity)
                                                                 2001                           2000

* Net income                                               CHF180.8 million                CHF82.2 million

* Return on average equity                                       13.9%                          10.8%

* Total client assets                                       CHF75.1 billion                CHF53.6 billion

* Total shareholders' equity                                CHF1.8 billion                 CHF1.0 billion


Eliminating the effects of the new Hong Kong, Singapore and Nassau branches, and
the operations of the former Geneva branches of HSBC Bank Middle East and HSBC
Investment Bank, the financial highlights would be as follows:

                                                         2001                                    2000

* Net income                                       CHF102.8 million                        CHF87.2 million

* Return on average equity                               11.1%                                  11.5%

* Total client assets                               CHF47.8 billion                        CHF40.8 billion

Balance sheet and client assets at 31 December 2001

Total assets were CHF35.7 billion (31 December 2000: CHF21.2 billion). The
primary increase was due to the acquisition of the HSBC Group's private banking
operations in Hong Kong, Singapore and Nassau.


Amounts due from banks were CHF18.7 billion (31 December 2000: CHF12.0 billion)
and reflected the increase in client deposits.

Financial fixed assets were CHF9.7 billion (31 December 2000: CHF4.4 billion).
This growth was driven by the increase in client deposits.


Amounts due from customers were CHF4.9 billion, of which 98 per cent were
collateralised by deposits, funds and securities (31 December 2000: CHF3.7
billion).

On balance sheet client deposits were CHF24.5 billion (31 December 2000: CHF16.9
billion). Client portfolio assets were CHF50.6 billion (31 December 2000:
CHF36.7 billion), making total client assets under management at 31 December
2001, both on and off-balance sheet, CHF75.1 billion (31 December 2000: CHF53.6
billion). This 40 per cent increase was due to the merger mentioned above and
the growth in client relationships.


Total shareholders' equity at 31 December 2001 was CHF1.8 billion (31 December
2000: CHF1.0 billion). This capital increase of approximately CHF800 million
reflects the decision by the HSBC Group to centre its international private
banking operations in Geneva. In addition to the above, HSBC Republic Bank
(Suisse) SA benefited from subordinated debt of CHF502.5 million from HSBC
Holdings plc during this period.

Statement of income for the nine-month period ended 31 December 2001

The income results given for 2000 were for the nine-month period from 1 April
2000 to 31 December 2000 (information purposes only).

Net interest income was CHF172.0 million for the nine-month period from the 1
April 2001 to 31 December 2001 (31 December 2000: CHF116.6 million). This
reflects the increased capital of HSBC Republic Bank (Suisse) SA and the overall
growth in interest earning assets.

Net commission income for the nine months ended 31 December 2001 was CHF192.6
million (31 December 2000: CHF163.0 million), an 18 per cent increase. After
deduction of the additional commissions generated as a result of the
acquisitions and mergers in the two periods, the 2001 commissions for the
nine-month period ended 31 December 2001 were CHF156.6 million, a 7 per cent
increase over the CHF146.5 million earned in the same period in 2000.

Trading income, primarily foreign exchange, resulted in profits of CHF49.9
million (31 December 2000: CHF25.2 million).

Other ordinary results were CHF185.4 million (31 December 2000: CHF9.7 million)
and included CHF183.3 million of revenues acquired from the existing Hong Kong,
Singapore and Nassau private banking entities.


Total operating expenses were CHF354.3 million (31 December 2000: CHF179.7
million) and included CHF124.0 million in operating expenses from the Hong Kong,
Singapore and Nassau entities.

Total depreciation, amortisation, losses and value adjustments amounted to
CHF53.4 million (31 December 2000: CHF57.6 million). Net other extraordinary
income was CHF22.8 million (31 December 2000: CHF29.4 million) which included a
gain on the sale of a building and a partial release of the general reserve for
banking risks.

Executive summary

"We are pleased with the expansion of our business from a Swiss platform, which
now includes our Asian operations and a recently opened branch in Nassau,
Bahamas. Results for 2001 have been steady, in spite of subdued markets, and
commission income has shown a 7 per cent increase over the same period in 2000.
Our costs have increased in line with our expansion and are on target at
CHF354.3 million.


"Product development continues to be an area of emphasis, with structured
products being offered to clients to reduce, where possible, risk premiums and
maximise returns in an uncertain financial environment. Our funds offering
continues to grow in line with market and client demand, including strong growth
in the alternative and hedge fund sector.

"Drawing upon a long and consistently conservative background from both HSBC and
Republic, senior management's major emphasis will be to continue to safeguard
our clients' capital entrusted to us, while at the same time offering service
and investment performance levels consistent with their risk appetites and good
market practices.


"As this will be my last opportunity to comment on the results of HSBC Republic
(Suisse) in my present capacity, I would like to salute the contribution of my
colleagues over recent years and to state my satisfaction with the excellent
position of the bank in handing the reins of this business to Mr Peter
Braunwalder, who will succeed me today as President of the bank."


Sem Almaleh
President, Chief Executive Officer

                         HSBC Republic Bank (Suisse) SA

                       Balance sheet at 31 December 2001
(CHF 000)                                                                      At 31Dec01                At 31Dec00*

Assets

Liquid assets                                                                      95,928                     45,061

Receivables arising from money-market                                           1,027,504                    241,868

Amounts due from banks                                                         18,668,757                 11,974,349

Amounts due from customers                                                      4,903,525                  3,697,123

Loans secured by mortgages                                                         35,549                     26,131

Securities and precious metals held for trading                                     1,956                      1,523

Financial fixed assets                                                          9,749,471                  4,352,565

Participations                                                                     15,312                     15,312

Fixed assets                                                                      150,373                    132,891

Goodwill                                                                           84,757                    101,636

Accrued income and prepaid                                                        305,310                    231,765

Other assets                                                                      670,814                    405,289

Total assets                                                                   35,709,256                 21,225,513

Liabilities

Amounts due arising from money-market paper                                        43,335                     37,512

Amounts due to banks                                                            7,765,144                  2,276,516

Other amounts due to customers                                                 24,482,826                 16,891,534

Subordinated debt                                                                 502,500                    161,800

Accrued expenses and deferred income                                              209,954                    195,541

Other liabilities                                                                 652,353                    383,121

Value adjustments and provisions                                                  127,411                    153,161

Reserve for general banking risks                                                 106,783                     77,506

Total amounts due                                                              33,890,306                 20,176,691

Share capital                                                                     680,000                    437,060

General legal reserve                                                             958,124                     26,000

Retained earnings at beginning of the period                                            -                    460,416

Net income for the period                                                         180,826                    125,346

Total shareholders' equity                                                      1,818,950                  1,048,822

Total liabilities                                                              35,709,256                 21,225,513


* The information presented for comparative purposes is that of the preceding
legal entity.

                         HSBC Republic Bank (Suisse) SA

                              Statement of income

                for the nine-month period ended 31 December 2001


                                                                                 31Dec01                    31Dec00*
(CHF 000)                                                                     (9 months)                  (9 months)

Interest income

Interest and discount income                                                    660,308                     600,568

Interest and dividend income from investment
  portfolio                                                                     260,801                     202,194

Interest expense                                                               (749,124)                   (686,164)

Net interest income                                                             171,985                     116,598

Income from commissions, products and
  services

Commission income from credit-granting
  business                                                                        5,149                       4,712

Commission income from securities and
  investment activities                                                         194,640                     168,578

Commission income from other services
  rendered                                                                       10,282                       9,952

Commission expense                                                              (17,437)                    (20,280)

Net income from commissions, products and
  services                                                                      192,634                     162,962

Trading income                                                                   49,933                      25,176

Other ordinary results                                                          185,438                       9,659

Operating expenses

Personnel expenses                                                             (247,657)                   (116,799)

Other operating expenses                                                       (106,659)                    (62,881)

Total operating expenses                                                       (354,316)                   (179,680)

Gross profit                                                                    245,674                     134,715

Depreciation of fixed assets                                                    (13,851)                    (20,077)

Depreciation of goodwill                                                        (12,660)                    (12,660)

Value adjustments, provisions and losses                                        (26,886)                    (24,911)

Sub-total                                                                       192,277                      77,067

Extraordinary income/(expenses), net                                             22,774                      29,355

Taxes                                                                           (34,225)                    (24,230)

Net profit                                                                      180,826                      82,192

* The information presented for comparative purposes is that of the preceding
legal entity.

Further Information

1. HSBC Republic

HSBC Republic Bank (Suisse) SA is part of HSBC Republic, the principal
international private banking division of the HSBC Group. Headquartered in
Geneva, HSBC Republic provides private banking and trustee services for high net
worth individuals and their families through 37 locations in the Americas, Asia,
Europe and the Middle East, employing some 3,700 professionals worldwide. At 31
December 2001 HSBC Republic had client assets under management in excess of
US$150 billion.

2. HSBC Holdings plc

HSBC Holdings plc is headquartered in London and quoted on the London, Hong
Kong, New York and Paris stock exchanges. The HSBC Group has some 7,000 offices
in 81 countries and territories, in Europe, the Asia-Pacific region, the
Americas, the Middle East and Africa and, with total assets of US$696 billion at
31 December 2001, is one of the world's largest banking and financial services
organisations.


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