Subsidiary Interim Results

HSBC Holdings PLC
17 August 2006



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

                           HSBC TRINKAUS & BURKHARDT
               DOUBLES OPERATING PROFIT IN THE FIRST HALF OF 2006

   • Operating profit in the first half of 2006 increased 110.7 per cent to
    EUR104.3 million from EUR49.5 million in the first half of 2005.


   • Profit after tax in the first half of 2006 increased 72.0 per cent to
    EUR70.7 million from EUR41.1 million in the first half of 2005.


   • Cost:income ratio fell to 58.3 per cent at the end of the first half of
    2006 from 68.6 per cent at the same point in 2005.

HSBC Trinkaus & Burkhardt more than doubled operating profit in the first half
of 2006 to EUR104.3 million. Profit after tax increased by 72.0 per cent from
EUR41.1 million to EUR70.7 million. Return on equity at the end of June 2006 was
33.9 per cent, up from 19.1 per cent at the same point last year.

Across all client segments, strong growth was recorded in asset management
activities. Meanwhile, Corporate Banking improved its revenues, largely through
increased customer appetite for interest rate products. The bank's Institutional
Clients and Private Banking units profited from higher transaction volumes in
equities.

Net interest income rose by 30.8 per cent to EUR46.3 million. Declining interest
income from financial assets was more than compensated for by, amongst other
things, higher revenues from the securities services joint venture -
International Transaction Services GmbH (ITS).

Fee income increased significantly, rising by 22.4 per cent to EUR151.2 million.
Growth in fee income from securities business was moderate due largely to the
recent decline in stock prices, however, fee income from derivatives and foreign
exchange business grew strongly.

Encouragingly, trading profit rose to EUR62.5 million in the first half of 2006
from EUR27.3 million in the same period last year. All trading segments
contributed to this increase, but equities and equity-/index-derivatives stood
out contributing EUR49.2 million.

Administrative expenses rose by 15.3 per cent to EUR156.0 million, largely due
to an increase in personnel expenses which were up 22.0 per cent to EUR105.1
million. This was due to an increase in performance-related remuneration.
Provisions for pensions were lower than last year, as pension obligations were
moved to a Contractual Trust Arrangement (CTA). Depreciation decreased due to
the sale of the securities execution system GEOS to the affiliated company ITS.
The overall effect of these measures and the strong business performance was a
decrease in the cost:income ratio from 68.6 per cent to 58.3 per cent at the end
of the first half 2006.

The management board is encouraged by these results but stock markets have
weakened since May this year, which is likely to affect some business in the
second half. Nevertheless, the management board continues to pursue its goal of
increasing operating profit for the full year, over the results posted for 2005.




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