HSBC Trinkaus Q3 2007 Results

HSBC Holdings PLC
08 November 2007


The following text is the English translation of a news release issued in
Germany by HSBC Trinkaus & Burkhardt, a 78.6 per cent indirectly owned subsidiary 
of HSBC Holdings plc.

                          HSBC TRINKAUS & BURKHARDT AG
                           THIRD QUARTER 2007 RESULTS
                                        
• Operating profit up 18.3 per cent in the first nine months of 2007 to
  €162.6 million, compared with the same period in 2006.

• Profit after tax up 24.0 per cent in the first nine months of 2007 to
  €111.6 million versus the first nine months of 2006.

• Return on equity before tax of 26.5 per cent during the first nine months of 
  2007, compared with 24.7 per cent for the same period last year.

HSBC Trinkaus & Burkhardt AG showed strong results in the first nine months of
the year as all business segments exceeded comparable 2006 results. Operating
profit during the nine month period was up 18.3 per cent period on period to
€162.6 million. Profit after tax increased by 24.0 per cent compared with the
first nine months of 2006 to €111.6 million. Trading profit remained at a high
level despite the volatility in the capital markets. Net interest income and fee
income were the greatest contributors to earnings.

Net interest income rose significantly during the first three quarters, by 24.4
per cent to €83.6 million versus the comparable period in 2006. This was
primarily due to an increase in customer deposits which funded higher loans and
advances to banks and increased loans and advances to customers. Interest income
from financial assets, including investment income, remains at a high level.

Net fee income increased 14.2 per cent to €242.9 million compared to the previous 
year. This was due primarily to higher volumes in the securities business despite 
a slight slowdown in recent months. The issuing and structuring business also 
made a contribution to this growth.

Trading profit again improved, by 4.1 per cent to €84.3 million in the first
three quarters compared with the same period in 2006, despite an extremely high
starting base during the last two years. Volatility in capital markets in the
third quarter resulted in the weakest earnings contribution from trading profit
compared to the two preceding quarters in 2007. Equities and equity/index
derivatives remain the strongest earnings component.
                                                                            
Net credit for loan impairment of €3.7 million was primarily attributable to the
reversal of individually assessed impairments and a reduction in collectively
assessed impairments. Credit risk provisioning continues to remain cautious and
characterised by strong valuation standards.

Total administrative expenses increased 14.2 per cent compared with the first
nine months of 2006. This was due to both an increase in the number of employees
and higher performance-related remuneration. Other administrative expenses
increased due to higher fees for consultancy services in IT projects for the
further modernisation of IT infrastructure.

The cost efficiency ratio remained unchanged at 61.8 per cent compared with the
comparable nine month period in the previous year.

The Management Board is aiming to increase operating profit for the full year
compared with 2006. HSBC Trinkaus' business model and strategy joins up its
traditional full range of personalised service and local expertise with the HSBC
Group's worldwide network. To reinforce its strategy and distinctive image in
the German market, HSBC Trinkaus will today introduce a new HSBC-branded logo
campaign.

Notes to editors:

1. HSBC Trinkaus & Burkhardt AG
HSBC Trinkaus is one of the leading private banks in Germany and part of the
globally-operating HSBC Group. In addition to the head office in Dusseldorf,
HSBC Trinkaus is represented in six locations in Germany with over 1,800
employees and has access to the global network of the HSBC Group. With total
assets of €21.8 billion* and €86.3 billion in funds under management and
administration*, the bank has a Fitch IBCA rating of AA-. The core target groups
are private clients, corporate clients and institutional clients. *(figures as
at 30 September 2007)

Copies of all the bank's news releases can be found on the homepage
www.hsbctrinkaus.de.

2. Notes to the consolidated profit and loss account and the consolidated balance 
sheet
The Interim Report for the HSBC Trinkaus & Burkhardt Group as at 30 September
2007 was drawn up in accordance with International Financial Reporting Standards
(IFRS) as they are to be applied in the European Union. The interim reporting
requirements as set out in IAS 34 are fulfilled in particular. Furthermore, the
report takes into consideration the requirement of an interim management
statement pursuant to Section 37x German Securities Trading Act (WpHG). No
review of the Interim Report was carried out by external
auditors.








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