HSBC Subsidiary Results

HSBC Holdings PLC
15 August 2001



                        HSBC Republic Bank (Suisse) SA

    THREE MONTHS RESULTS TO END OF JUNE 2001 AFTER CORPORATE RESTRUCTURING




HSBC Republic Bank (Suisse) SA ('HSBC Republic') underwent a corporate
restructuring during the second quarter of 2001. The Swiss private banking
entity was reorganised to permit the integration of the Hong Kong, Singapore
and Nassau offices into HSBC Republic, which is the principal subsidiary of
HSBC Private Banking Holdings (Suisse) SA.


HSBC Private Banking Holdings (Suisse) SA was created to permit the
integration of the HSBC Group's international private banking businesses, to
improve client focus while acknowledging the importance of the Swiss market as
a centre of international private banking.


The following information was as of 30 June 2001 for the balance sheet and for
the period from 1 April 2001 to 30 June 2001 (i.e. three months) for the
income statement. 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 June 2001 financial
information.


Financial information for the 'old' HSBC Republic Bank (Suisse) SA as of and
for the three-month period ended 30 June 2000 has been included for
information purposes.


* Net income: CHF64.4 million


* Return on average equity: 15.45% (annualised)


* Total client assets, on and off-balance sheet: CHF61.2 billion


* Total shareholders' equity: CHF1.7 billion




Financial Commentary


STRUCTURE AND CLIENT ASSETS AT 30 JUNE 2001

Total assets were CHF32.8 billion (30 June 2000: CHF18.1 billion). The primary
increase was due to the merger with the former Geneva branches of HSBC Bank of
the Middle East and HSBC Investment Bank.

Amounts due from banks were CHF20.7 billion (30 June 2000: CHF8.6 billion) and
reflected the increase in client deposits.

Amounts due from customers were CHF3.8 billion, of which 98.9% were
collateralised by deposits, funds and securities (30 June 2000: CHF3.3
billion).

On balance sheet client deposits were CHF20.9 billion (30 June 2000: CHF13.5
billion).

Client portfolio assets were CHF40.3 billion (30 June 2000: CHF25.6 billion),
making total client assets under management at 30 June 2001, both on and
off-balance sheet, CHF61.2 billion (30 June 2000: CHF39.1 billion). This 55.7%
increase was due to the merger mentioned above and the growth in client
relationships.

Total shareholders' equity at 30 June 2001 was CHF1.7 billion (30 June 2000:
CHF1.0 billion). This capital injection of approximately CHF700 million
reflects the decision by the HSBC Group to centre its international private
banking operations in Geneva. In addition to the above, HSBC Republic
benefited from subordinated debt of CHF178 million from HSBC Holdings plc
during this period.


STATEMENT OF INCOME FOR THE THREE-MONTH PERIOD ENDED 30 JUNE 2001

The income statement results for 2001 were for the three-month period from 1
April 2001 to 30 June 2001. The income results given for 2000 were for the
three-month period from 1 April 2000 to 30 June 2000 (information purposes
only).


Net interest income was CHF51.1 million (30 June 2000: CHF40.2 million). This
reflects the increased capital of HSBC Republic and the overall growth in
interest earning assets.


Commission income for the three-months ended 30 June 2001 was CHF62.6 million
(30 June 2000: CHF51.1 million), a 22.5% increase. After deduction of the
additional commissions generated in 2001 by the clients of the former Geneva
branches of HSBC Bank Middle East and HSBC Investment Bank, the 2001
commissions for the three-month period ending 30 June 2001 were CHF54.4
million, a 6.6% increase over the same period in 2000.


Trading income, primarily foreign exchange, resulted in profits of CHF12.5
million (30 June 2000: CHF7.3 million).


Other ordinary results were CHF77.5 million (30 June 2000: loss of CHF29.3
million) and included CHF72.9 million of revenues from the Hong Kong and
Singapore private banking operations.


Total operating expenses were CHF116.1 million (30 June 2000: CHF54.8 million)
and included CHF39.7 million in operating expenses from the Hong Kong and
Singapore entities.


Total depreciation, amortisation, losses and valuation adjustments amounted to
CHF18.7 million (30 June 2000: CHF12.7 million). One item in 2001 was the
reclassification of CHF9.6 million from the general reserve for banking risks
to a specific reserve.


Other extraordinary income was CHF9.6 million (30 June 2000: CHF24.3 million)
which was the reclassification to a specific reserve mentioned above.


On 4 July 2001, HSBC Republic received a license to open a branch in Nassau,
Bahamas. With this approval HSBC Republic, headquartered in Geneva, has
branches in Zurich, Lugano, Guernsey, Hong Kong, Singapore and Nassau.


EXECUTIVE SUMMARY


We are pleased with the expansion of our business from a Swiss platform, which
now includes our Asian business operations and opening of a branch in Nassau,
Bahamas.


Results have been steady, in spite of subdued markets, and commission income
has shown a 6.6% increase over the same period in 2000. Our costs have
increased in line with our expansion and are on target at CHF116.1 million
(April - June 2001).


Product development continues to be an area of emphasis, with structured
products being offered to clients to decrease, 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.


Further Information


1. HSBC Republic Bank (Suisse) SA

HSBC Republic Bank (Suisse) SA is part of HSBC Republic, the 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 33 locations in the Americas, Asia,
Europe and the Middle East, employing some 3,400 professionals worldwide. At
30 June 2001 HSBC Republic had client assets under management in excess of
US$145 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 6,500
offices in 78 countries and territories, across Europe, Asia-Pacific, the
Americas, the Middle East and Africa and, with total assets of US$692 billion
at 30 June 2001, is one of the world's largest banking and financial services
organisations.



Financial Commentary


Balance sheet at 30 June 2001

Assets
(CHF000)                                                  30Jun01      30Jun00*

Liquid assets                                              54,904        31,814
Receivables arising from money market paper               230,444       186,005
Amounts due from banks                                 20,691,173     8,627,329
Amounts due from customers                              3,847,293     3,313,197
Loans secured by mortgages                                 30,066        12,666
Securities and precious metals held for
 trading purposes                                             784         4,363
Financial fixed assets                                  6,968,961     5,269,502
Participations                                             15,312         1,529
Fixed assets                                              146,714       138,988
Goodwill                                                   93,197       110,075
Accrued income and prepaid expenses                       235,341       183,614
Other assets                                              457,446       216,437

Total assets                                           32,771,635    18,095,519


* The information presented is for comparison with the preceding legal entity


Liabilities
(CHF000)                                                   30Jun01     30Jun00*

Amounts due arising from money-market paper                 61,348       43,253
Amounts due to banks                                     9,177,983    3,038,267
Amounts due to customers in the form of savings or
 deposit accounts                                               12          174
Other amounts due to customers                          20,858,688   13,456,782
Subordinated debt                                          178,000            -
Accrued expenses and deferred income                       215,129      145,380
Other liabilities                                          357,350      252,469
Value adjustments and provisions                           152,711      100,516
Reserve for general banking risks                           67,882       84,850

Total amount due                                        31,069,103   17,121,691

Share capital                                              680,000      425,000
General legal reserve                                      958,124       26,000
Retained earnings at beginning of the year                       -      460,416
Net income for the period                                   64,408       62,412

Total shareholder's equity                               1,702,532      973,828

Total liabilities                                       32,771,635   18,095,519

Off-balance sheet transactions

Contingent liabilities                                 8,963,976        790,868
Irrevocable facilities granted                           353,768        292,930
Off-balance sheet financial instruments               27,282,319     15,484,911
Fiduciary transactions                                13,705,467      4,546,193


* The information presented is for the comparison with the preceding legal
entity

Statement of income for the period ended 30 June 2001
(CHF000)                                            30Jun01*       30Jun00**
                                                    (3months)       (3months)
Interest Income
Interest and discount income                         226,928         178,805
Interest and dividend income from trading                -                 3
portfolio
Interest and dividend income from investment          81,521          66,358
portfolio
Interest expense                                   (257,371)       (204,949)

Net interest income                                   51,078          40,217

Income from commissions, products and services
Commission income from credit-granting business        2,114           2,163
Commission income from securities and investment
 activities                                           64,355          49,929
Commission income from other services rendered         3,217           3,199
Commission expense                                   (7,104)         (4,198)
Net income from commissions, products and services    62,582          51,093

Trading income                                        12,466           7,268

Other ordinary results                                77,463        (29,283)

Operating expenses
Personnel expenses                                  (79,601)        (35,564)
Other operating expenses                            (36,492)        (19,243)

Total operating expenses                           (116,093)        (54,807)

Gross profit                                          87,496          14,488

Depreciation of fixed assets                         (4,258)         (7,860)
Depreciation of goodwill                             (4,220)         (4,220)
Value adjustment, provisions and losses             (10,197)           (661)

Sub-total                                             68,821           1,747

Provisions for general banking risks
Extraordinary income/(expenses)                        9,614          24,261
Taxes                                               (14,027)         (6,750)

Net profit                                            64,408          19,258


* 1 April to 30 June 2001-08-10

** The information presented is for comparisons with the preceding legal
entity (period 1 April to 30 June 2000)