HSBC Trinkaus 3Q 06 Results

HSBC Holdings PLC
09 November 2006


The following text is the English translation of a news release issued in
Germany by HSBC Holdings plc's subsidiary.

                           HSBC TRINKAUS & BURKHARDT
                           THIRD QUARTER 2006 RESULTS

   •Operating profit up 57.2 per cent to €137.4 million in the first nine
    months of 2006, matching the full year 2005 level.

   •Profit after tax up 13.2 per cent to €90.0 million.

   •Interest income increased by 20.9 per cent to €69.5 million during the
    first nine months of 2006.

   •Fees and commissions income grew by 8.9 per cent to €212.7 million.

   • Return on equity before tax of 28.8 per cent during the first three
    quarters, compared with 25.4 per cent for the same period last year.

   •Cost:income ratio improved to 61.8 per cent during the first nine months
    of 2006, compared with 63.7 per cent during the same period last year.

HSBC Trinkaus & Burkhardt AG showed a significant increase in operating profit,
growing by €50.0 million during the first nine months of 2006 and reaching 2005
full year operating profit levels. Growth in profit after tax was moderate as
there were no significant one-off effects in the first nine months of 2006,
compared to 2005. Profit after tax increased 13.2 per cent, to €90.0 million
from €79.5 million for the same period last year. Return on equity increased to
28.8 per cent from 25.4 per cent in the corresponding period in 2005.

Trading and Institutional Customers divisions showed strong improvement. The
Institutional Customers division managed to further increase its revenues
compared to the previous year despite deteriorating market conditions during the
summer. The division contributed €45.0 million in operating profit, the highest
contribution of any segment. The strong contribution was primarily due to the
highly successful asset management business.

During the first nine months of the year, corporate and commercial banking and
private banking businesses were also able to significantly increase revenues.
The increase in trading revenues was particularly strong due to the firm growth
of the equities and equity derivatives business.

Components of operating profit reflected an overall positive performance during
the first three quarters of 2006. Interest income rose by 20.9 per cent to 
€69.5 million during the nine month period.

Fee income, the most important performance indicator of the bank, showed an
increase of 8.9 per cent to €212.7 million. Fee income from foreign exchange and
derivatives increased significantly. Fee income from structuring and issuance
businesses also increased due to placement of a structured mezzanine issue for
medium-sized businesses (H.E.A.T Mezzanine 2006).

Trading profits recorded the biggest increase, growing by 69.8 per cent to 
€81.0 million from €47.7 million in the corresponding period last year. The 
highest share of trading profits came from equities and equity/index derivatives
activities, contributing €62.4 million, largely driven by the HSBC Trinkaus
Investment Products proposition. Interest trading was able to increase profits
by 58.8 per cent to €12.7 million during the first nine months of 2006.

Higher provisions for performance-related remuneration, increased costs for
information technology and higher staff expenses due to increased staff levels
led to an increase in administrative expenses of 7.8 per cent to €229.5 million.
The strong increase in revenues contributed to an improved cost:income ratio of
61.8 per cent during the first three quarters of 2006, from 63.7 per cent for
the same period in 2005.

The management board does not expect fourth quarter results to benefit from
extraordinary gains from disposals as it had in 2005. However, it does expect
operating profit for the full year to increase significantly based on continued
stable revenues. Since the change in HSBC Trinkaus & Burkhardt's legal structure
to a stock corporation in July 2006, the board has intensified its successful
strategy of combining the strengths of the customer-oriented private bank with
the HSBC Group's network and product capabilities.






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