Subsid's Interim Results-Pt 1

HSBC HOLDINGS PLC
2 August 1999

Part 1
                   HANG SENG BANK LIMITED
              1999 INTERIM RESULTS - HIGHLIGHTS
                              
*  Operating profit before provisions up 6.1 per cent to HK$5,680
   million (HK$5,351 million for the first half of 1998).

*  Pre-tax profit up 13.3 per cent to HK$5,044 million (HK$4,451
   million for the first half of 1998).

*  Attributable profit up 12.1 per cent to HK$4,261 million (HK$3,802
   million for the first half of 1998).

*  Return on average shareholders' funds of 18.0 per cent (14.8 per
   cent for the first half of 1998).

*  Total assets up HK$12.8 billion to HK$435.5 billion (HK$422.7
   billion at 31 December 1998).

*  Earnings per share up 12.1 per cent to HK$2.23 (HK$1.99 per share
   for the first half of 1998).

*  Interim dividend per share up 14.3 per cent to HK$1.60 (HK$1.40 per
   share for the first half of 1998).

*  Total capital ratio of 22.7 per cent (21.7 per cent at 31 December
   1998); tier 1 capital ratio of 19.5 per cent (18.5 per cent
   at 31 December 1998).

*  Cost:income ratio of 23.5 per cent (25.6 per cent for the first
   half of 1998).

Hang Seng Bank reports profit attributable to shareholders of
HK$4,261 million for the first six months of 1999, up 12.1
per cent on the same period last year

Hang Seng Bank Limited and its subsidiary companies (Hang Seng)
reported an unaudited profit attributable to shareholders of
HK$4,261 million for the first half of 1999, an increase of
12.1 per cent compared with the first half of 1998. Earnings
per share of HK$2.23 were 12.1 per cent higher than the first
half of 1998.

Operating profit before provisions increased by 6.1 per cent to
HK$5,680 million with an improvement in operating income and
a marked reduction in operating expenses. Operating profit
increased 9.9 per cent to HK$4,891 million, reflecting the
reduction in bad and doubtful debt provisions. Profit before
tax amounted to HK$5,044 million, 13.3 per cent higher than
the first half of 1998, and benefited from the increase in
profit on disposal of locally-listed equities and the absence
of a deficit on property revaluation.

Total assets increased by HK$12.8 billion, or 3.0 per cent, to
HK$435.5 billion compared with HK$422.7 billion at 31
December 1998 with increases in interbank assets and debt
securities. There was a slight decline in advances to
customers.

Shareholders' funds increased by HK$1,882 million, or 4.1 per cent,
to HK$47,387 million at 30 June 1999. This increase
represents retained profit for the first half of 1999 and an
increase in investment revaluation reserve due to the rise in
fair value of long-term equities. The total amount of this
revaluation reserve at 30 June 1999 was HK$3,098 million.

The return on average total assets was 2.0 per cent (1.9 per cent
for the first half of 1998) while the return on average
shareholders' funds was 18.0 per cent (14.8 per cent for the
first half of 1998).

The advances to deposits ratio was 54.1 per cent at 30 June 1999
compared with 56.2 per cent at the end of 1998, reflecting
growth in customer deposits and a small decrease in advances
to customers. Hang Seng continued to maintain a strong
liquidity position, with the average liquidity ratio for the
first half of 1999 (calculated in accordance with the Fourth
Schedule of the Banking Ordinance), standing at 42.3 per cent
(average liquidity ratio of 38.0 per cent for the first half
of 1998).

Hang Seng's capital position has further strengthened. The total
capital ratio at 30 June 1999 was 22.7 per cent (21.7 per
cent at 31 December 1998) and the tier 1 capital ratio was
19.5 per cent (18.5 per cent at 31 December 1998).

Interim dividend

The Directors have declared an interim dividend of HK$1.60 per
share (HK$1.40 for the first half of 1998), to be payable on
Monday 6 September 1999 to shareholders on the Register of
Shareholders on Friday 3 September 1999. The dividend as
declared should not be taken as an indication of the level of
profit or dividend for the full year.

Comment by David Eldon, Chairman

'Hang Seng performed well in the first half, despite the difficult
economic environment, with an increase in attributable profit
of 12.1 per cent. Operating income grew and we achieved a
marked reduction in operating expenses. The charge for bad
and doubtful debts has been reduced from the high levels of
1998.

'While the economic downturn may have bottomed out, there are few
indications of a strong turnaround in the remainder of the
year. Nonetheless, Hang Seng is well placed to take advantage
of any improvement in market conditions.'

Hang Seng Bank Limited                                     Contents
____________________________________________________________________

The financial information in this news release is based on the
unaudited consolidated accounts of Hang Seng Bank Limited and
its subsidiary companies for the six months ended 30 June
1999.

Highlights of Results and Chairman's Comment
Contents
Consolidated Profit and Loss Account (Unaudited)
Financial Information Extracted from the Consolidated Balance Sheet
Financial Review
      Net interest income
      Other operating income
      Operating expenses
      Provisions for bad and doubtful debts
      Profit/(loss) on disposal of tangible fixed assets and
       long-term investments
      Taxation
      Earnings per share
      Dividends per share
      Cash and short-term funds
      Placings with banks maturing after one month
      Advances to customers
      Provisions against advances to customers
      Non-performing advances to customers and provisions
      Overdue advances to customers
      Rescheduled advances to customers
      Advances to customers by industry sectors
      Long-term investments
      Other assets
      Current, savings and other deposit accounts
      Shareholders' funds
      Contingent liabilities, commitments and derivatives
Additional Information
      Accounting policies
      Comparative figures
      Capital ratios
      Year 2000 readiness
      Statutory accounts
      Ultimate holding company
      Statement of compliance
      Register of shareholders
      News release

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