Subsidiary's Interim Report

HSBC HOLDINGS PLC
11 August 1999

    HSBC TRINKAUS & BURKHARDT : INTERIM RESULTS TO 30 JUNE 1999
                - PROFITS CONTINUE TO RISE -

HSBC Trinkaus & Burkhardt, Dusseldorf, which is approximately
73.5 per cent indirectly-owned by HSBC Holdings plc,
announced a further marked growth in profitability for the
first half of 1999. The interim results to 30 June 1999 have
been published in Euros for the first time. The operating
profit of EUR 68.1 million represents a 22.9 per cent
increase on the same period last year. Pre-tax profits rose
13.1 per cent to EUR 68.0 million. Post-tax profit rose 26.4
per cent to EUR 36.4 million.

Earnings per share, calculated in accordance with
International Accounting Standards, rose from EUR 1.10 to EUR
1.39.

The growth in profitability can be attributed to a number of
factors. Net interest income increased 9.5 per cent to EUR
63.6 million, mainly due to an increased securities
portfolio, but also due to slightly improved interest
margins. Commission income grew by a further
10.5 per cent to reach EUR 64.4 million, reflecting higher
net fee and commission income from securities transactions.
Trading income rose 14.9 per cent to EUR 32.4 million.
Trading in equities and equity derivatives was again the
prime contributor.

Strict cost control resulted in a modest increase of 6.7 per
cent in consolidated operating expenses to EUR 90.7 million,
despite Year 2000 preparation costs and increased profit
related salary costs. The cost:income ratio stood at 56.3 per
cent, compared with a ratio of 58.3 per cent for the same
period last year. The number of employees rose from 1,231 at
the beginning of the year to 1,248.

Risk provisions continued to be subject to strict evaluation
criteria; it was nonetheless possible to reduce the charge
for bad and doubtful debts from EUR 5.4 million to EUR 2.2
million. The consolidated balance sheet grew 16.1 per cent
from 31 December 1998 to EUR 13.1 billion. There was a
significant growth in assets, in amounts due from banks and
in financial assets. Liabilities increased mainly due to
increased amounts due to banks. Shareholders' funds grew from
EUR 560.1 million at the end of 1998 to EUR 569.5 million.
Subordinated capital rose from EUR 222.2 million to EUR 277.7
million. As at 30 June 1999, the total capital base
represented 10.7 per cent of risk weighted assets. The core
capital ratio stood at 7.4 per cent.

With regard to off-balance-sheet business, the nominal value
of derivatives at the end of the first half of 1999 stood at
EUR 81.9 billion. Of the total, EUR 64.0 billion related to
interest-rate derivatives, EUR 15.4 billion to currency
derivatives and EUR 2.5 billion to equity and index-related
derivatives. The gross positive mark-to-market value of
derivatives stood at EUR 1.7 billion.

The planned Internet Bank will commence business at the start
of next year and will provide the bank with a completely new
potential customer base. HSBC Trinkaus & Burkhardt, using the
stockbroking experience and software know-how of its joint
venture partners, aims to become a market leader in Internet
broking in Germany.

The partners anticipate a satisfactory performance for the
full year.