Re HSBC Trinkaus & Burkhardt

HSBC Hldgs PLC
10 August 2000


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


  HSBC TRINKAUS & BURKHARDT INTERIM RESULTS TO 30 JUNE 2000 -
                  GOOD PERFORMANCE CONTINUES

HSBC Trinkaus & Burkhardt, Dusseldorf, which is 73.5 per cent
indirectly-owned by HSBC Holdings plc, reported further
improvement in its results for the first half of 2000.
Operating profits rose 15.1 per cent over the same period to
EUR 78.4 million. Pre-tax profits increased 20 per cent to EUR
81.6 million. Post-tax profits rose 17.9 per cent to EUR 42.9
million. Earnings per share stood at EUR 1.67 in comparison to
EUR 1.39 for the same period last year. Pre-tax return on
equity rose - on an annualised basis - from 23 per cent to 25.2
per cent.

Net interest income rose 39 per cent to EUR 37.8 million. A key
factor here was the expansion of customer business together
with slightly improved margins, and an increased holding of
interest-bearing securities as financial assets. Risk
provisions continued to be subject to strict evaluation
criteria; it was nonetheless possible to reduce the charge for
bad and doubtful debts to EUR 1.5 million (EUR 2.2 million in
prior year). After risk provisions, net interest income rose
45.2 per cent to EUR 36.3 million.

Net commission income exceeded last year's excellent
performance by 39.1 per cent to reach EUR 120.6 million,
attaining 3.2 times net interest income. The strong growth was
due to the high transaction volumes in customer-related
securities business and a rise in new issues commission income
resulting from an increased number of IPOs.

Dr. Sieghardt Rometsch, Chairman of the Managing Partners,
explained that the rate of growth in net interest and
commission income demonstrated the bank's strategy was on the
right course.

Dealing results for the first six months of 2000 did not
achieve the exceptional levels seen last year. At EUR 36.9
million results were 20.6 per cent below the previous year and
were also below expectations. Share-related dealing and foreign
exchange trading produced good results, whilst interest-rate
dealing results proved disappointing.

There was a clear increase in operating expenses, up 28.3 per
cent to EUR 116.4 million. This reflected an increase in the
number of employees from 1,248 to 1,397, higher profit related
bonuses and, for the first time, start-up costs for the
internet broker, pulsiv.com. The internet broker, which
commenced business in April, is developing successfully.

All customer-related divisions of the bank contributed to the
positive development of the first half year's results. Both
corporate and private banking recorded a notable increase in
profitability. Institutional investor business grew
particularly strongly.

The consolidated balance sheet grew in the first half of the
year by 9.6 per cent to EUR 12.6 billion. Advances to customers
grew 25.8 per cent to EUR 3.2 billion. Shareholders' funds
amounted to EUR 602.5 million. As at 30 June 2000, the total
capital base represented 10.1 per cent of risk weighted assets.
The core capital ratio stood at 6.7 per cent.

With regard to off-balance sheet business, at 30 June 2000 the
nominal value of outstanding derivatives business stood at EUR
87.1 billion, compared with EUR 77.9 billion at 31 December
1999. Of the total, EUR 64.0 billion related to interest rate
derivatives, EUR 17.8 billion to currency derivatives and EUR
5.3 billion to equity and index related derivatives. The
replacement cost of OTC derivatives, which indicates the credit
risk of these contracts, stood at EUR 1.3 billion as against
EUR 1.8 billion at the end of 1999. The overall market risk as
defined by BIS reached EUR 28.3 million (EUR 17.7 million).

The partners are confident that, subject to market conditions
remaining the same, the overall positive trend of results for
the first half of the year will continue for the remainder of
the year. Despite planned increasing start-up losses for the
internet broker, pulsiv.com, the partners anticipate a
satisfactory performance for the year, which should allow a
slight increase in the dividend and continue the bank's
investor-oriented dividend distribution policy.