1/4: HSBC HOLDINGS FY04 PT3

HSBC Holdings PLC
28 February 2005


8. Analysis of fees and commissions receivable and payable

                       2004 Half-year ended      2003 Half-year ended
Figures in US$m      30Jun    31Dec     2004   30Jun    31Dec     2003

Account services     1,336    1,443    2,779   1,089    1,228    2,317
Credit facilities      579      600    1,179     465      501      966
Remittances            166      187      353     138      150      288
Cards                1,837    1,945    3,782   1,119    1,857    2,976
Imports/Exports        332      360      692     285      324      609
Underwriting           117      117      234      99       76      175
Insurance              586      591    1,177     455      506      961
Mortgage servicing      
 rights                 39       41       80      36       39       75
Trust income            99      105      204      72       73      145
Broking income         517      441      958     379      494      873
Global custody         279      285      564     151      187      338
Maintenance income      
 on operating leases    95       95      190      84       87      171
Funds under            
 management            788      710    1,498     523      573    1,096
Unit trusts            297      203      500     206      152      358
Corporate finance      100       93      193      81      108      189
Other                  762      732    1,494     452      571    1,023
Total fees and       
 commissions
 receivable          7,929    7,948   15,877   5,634    6,926   12,560
Less: fees          
 payable            (1,352)  (1,432)  (2,784)   (984)  (1,182)  (2,166)

Net fees and         
 commissions         6,577    6,516   13,093   4,650    5,744   10,394

9. Geographical distribution of results

HSBC European Operations

    
                    2004 Half-year ended        2003 Half-year ended
Figures in US$m  30 Jun    31Dec      2004    30Jun    31Dec      2003

Net interest      
 income           4,313    4,749     9,062    3,508    4,032     7,540

Dividend income     294      251       545      106       44       150
Net fees and      
 commissions      3,047    3,248     6,295    2,446    2,746     5,192
Dealing             
 profits            511      442       953      531      429       960
Other income        798      794     1,592      570      683     1,253
Other operating   
 income           4,650    4,735     9,385    3,653    3,902     7,555

Operating income  8,963    9,484    18,447    7,161    7,934    15,095


Staff costs      (3,222)  (3,361)   (6,583)  (2,632)  (2,944)   (5,576)
Premises and       
 equipment         (591)    (644)   (1,235)    (506)    (552)   (1,058)
Other            (1,284)  (1,459)   (2,743)    (950)  (1,118)   (2,068)
Depreciation and
 amortisation
 (excluding         
 goodwill)         (477)    (532)   (1,009)    (396)    (431)     (827)
Goodwill           
 amortisation      (447)    (500)     (947)    (376)    (382)     (758)
Operating        
 expenses        (6,021)  (6,496)  (12,517)  (4,860)  (5,427)  (10,287)

Operating profit
 before
 provisions       2,942    2,988     5,930    2,301    2,507     4,808

Customers:
- new specific     
  provisions       (895)  (1,154)   (2,049)    (551)    (934)   (1,485)
- releases and     
  recoveries        459      404       863      207      286       493
                   (436)    (750)   (1,186)    (344)    (648)     (992)
- net general        
  release            13      148       161        1      117       118
Total bad and
 doubtful
 debt charge       (423)    (602)   (1,025)    (343)    (531)     (874)

Provisions for
 contingent
 liabilities and    
 commitments        (79)      67       (12)     (17)     (16)      (33)

Amounts written
 off fixed asset        
 investments        (10)    (10)      (20)     (46)     (18)      (64)
Operating profit  2,430    2,443     4,873    1,895    1,942     3,837


Share of
 operating (loss)
 / profit in 
 joint ventures       4        1         5     (132)       5      (127)


Share of
 operating
 profits in
 associates          21       33        54       18       29        47

Investment and
 fixed asset
 disposal gains     165      128       293       88      124       212

Profit before     
 tax              2,620    2,605     5,225    1,869    2,100     3,969

HSBC Hong Kong Operations

                     2004 Half-year ended       2003 Half-year ended
Figures in US$m    30 Jun    31Dec     2004    30Jun    31Dec     2003
Net interest       
 income             1,780    1,859    3,639    1,991    1,910    3,901

Dividend income        17        2       19       15       16       31
Net fees and          
 commissions          904      822    1,726      647      736    1,383
Dealing profits       360      270      630      186      135      321
Other income          373      408      781      274      322      596
Other operating     
 income             1,654    1,502    3,156    1,122    1,209    2,331

Operating income    3,434    3,361    6,795    3,113    3,119    6,232

Staff costs          (714)    (701)  (1,415)    (611)    (665)  (1,276)
Premises and         
 equipment           (121)    (135)    (256)    (109)    (131)    (240)
Other                (274)    (379)    (653)    (214)    (288)    (502)
Depreciation and
amortisation
 (excluding            
 goodwill)            (97)    (103)    (200)     (98)     (96)    (194)
Goodwill              
 amortisation          (4)      (5)      (9)      (3)       -       (3)
Operating expenses (1,210)  (1,323)  (2,533)  (1,035)  (1,180)  (2,215)


Operating profit
 before provisions  2,224    2,038    4,262    2,078    1,939    4,017

Customers:
- new specific        
  provisions           (7)    (238)    (245)    (389)    (266)    (655)
- releases and         
  recoveries           25      219      244      107      117      224
                       18      (19)      (1)    (282)    (149)    (431)
- net general         
  release/(charge)    205       19      224      (21)      52       31
Total bad and
 doubtful
 debt release/         
 (charge)             223        -      223     (303)     (97)    (400)

Provisions for
 contingent
 liabilities and        
 commitments           (6)       3       (3)      (3)      (3)      (6)

Amounts written
 back/(off)
 fixed asset            
 investments           27       (1)      26        5       26       31
Operating profit    2,468    2,040    4,508    1,777    1,865    3,642

Share of operating
 profit/(loss)
 in associates         (2)      10        8        6       12       18

Investments and
 fixed asset disposal   
 gains                110      118      228       57       11       68

Profit before tax   2,576    2,168    4,744    1,840    1,888    3,728

HSBC Rest of Asia-Pacific Operations

                         2004 Half-year ended    2003 Half-year ended
Figures in US$m       30Jun    31Dec     2004   30Jun   31Dec     2003
Net interest income     984    1,071    2,055     840     900    1,740

Dividend income           1        2        3       3       1        4
Net fees and            
 commissions            506      551    1,057     363     442      805
Dealing profits         265      229      494     231     190      421
Other income             81      114      195      56      64      120
Other operating         
 income                 853      896    1,749     653     697    1,350

Operating income      1,837    1,967    3,804   1,493   1,597    3,090

Staff costs            (520)    (584)  (1,104)   (427)   (525)    (952)
Premises and            
 equipment              (89)     (94)    (183)    (80)    (84)    (164)
Other                  (302)    (387)    (689)   (235)   (292)    (527)
Depreciation and
 amortisation
 (excluding goodwill)   (51)     (53)    (104)    (47)    (51)     (98)
Goodwill                
 amortisation           (34)     (34)     (68)    (19)    (16)     (35)
Operating expenses     (996)  (1,152)  (2,148)   (808)   (968)  (1,776)

Operating profit
 before provisions      841      815    1,656     685     629    1,314

Customers:
- new specific          
  provisions            (41)    (377)    (418)   (181)   (231)    (412)
- releases and           
  recoveries             33      237      270     151     192      343
                         (8)    (140)    (148)    (30)    (39)     (69)
- net general release    
  /(charge)              18       30       48       4     (20)     (16)
Total bad and
 doubtful debt 
 (charge)/ release       10     (110)    (100)    (26)    (59)     (85)


Provisions for
 contingent
 liabilities and        
 commitments            (14)      14        -      (4)      3       (1)

Amounts written off
 fixed asset              
 investments              -        -        -       -      (2)      (2)

Operating profit        837      719    1,556     655     571    1,226

Share of operating
 profit in
 associates              96      136      232      65      84      149

Investments and fixed
 asset disposal
 gains                    6       11       17      14       2       16
    
Profit before tax       939      866    1,805     734     657    1,391

HSBC North American Operations
                      2004 Half-year ended      2003 Half-year ended
Figures in US$m     30Jun    31Dec     2004    30Jun    31Dec     2003
Net interest      
 income             7,410    7,503   14,913    4,630    7,147   11,777

Dividend income        16       16       32       22       12       34
Net fees and        
 commissions        1,905    1,630    3,535    1,044    1,632    2,676
Dealing profits       221      218      439      238      102      340
Other income          556      602    1,158      424      508      932
Other operating    
 income             2,698    2,466    5,164    1,728    2,254    3,982

Operating income   10,108    9,969   20,077    6,358    9,401   15,759

Staff costs        (2,285)  (2,445)  (4,730)  (1,593)  (2,130)  (3,723)
Premises and         
 equipment           (415)    (463)    (878)    (319)    (426)    (745)
Other              (1,373)  (1,588)  (2,961)    (936)  (1,305)  (2,241)
Depreciation and
 amortisation
 (excluding          
 goodwill)           (154)    (164)    (318)    (106)    (132)    (238)
Goodwill             
 amortisation        (372)    (389)    (761)    (231)    (412)    (643)
Operating          
 expenses          (4,599)  (5,049)  (9,648)  (3,185)  (4,405)  (7,590)

Operating profit
 before
 provisions         5,509    4,920   10,429    3,173    4,996    8,169

Customers:
- new specific     
  provisions       (2,786)  (3,091)  (5,877)  (1,835)  (3,127)  (4,962)
- releases and        
  recoveries          274      416      690      143      279      422
                   (2,512)  (2,675)  (5,187)  (1,692)  (2,848)  (4,540)
- net general          
  (charge)/release     40      (39)       1       22     (158)    (136)
Total bad and
 doubtful
 debt charge       (2,472)  (2,714)  (5,186)  (1,670)  (3,006)  (4,676)

Provisions for
 contingent
 liabilities and
 commitments            1      (43)     (42)       2        1        3
Amounts written
 off fixed
 asset                  
 investments            -        -        -       (4)      (5)      (9)
Operating profit    3,038    2,163    5,201    1,501    1,986    3,487
Share of operating
 profit in
 joint ventures         -        -        -        8        3       11

Share of operating
 profit/(loss)
 in associates          4      (12)      (8)       3        3        6

Investments and
 fixed assets
 disposal gains        57      169      226       90       19      109

Profit before tax   3,099    2,320    5,419    1,602    2,011    3,613


HSBC South American Operations
                         2004 Half-year ended    2003 Half-year ended
Figures in US$m        30Jun   31Dec     2004   30Jun   31Dec     2003
Net interest income      619     736    1,355     252     388      640

Dividend income            1       1        2       1       2        3
Net fees and             
 commissions             215     265      480     150     188      338
Dealing profits           26      24       50      72      64      136
Other income             104     103      207     107      94      201
Other operating          
 income                  346     393      739     330     348      678

Operating income         965   1,129    2,094     582     736    1,318

Staff costs             (303)   (357)    (660)   (230)   (354)    (584)
Premises and             
 equipment               (80)    (94)    (174)    (55)    (69)    (124)
Other                   (243)   (306)    (549)   (127)   (200)    (327)
Depreciation and
 amortisation
 (excluding goodwill)    (27)    (34)     (61)    (19)    (21)     (40)
Goodwill                 
 amortisation            (26)     (3)     (29)     (3)     (8)     (11)
Operating expenses      (679)   (794)  (1,473)   (434)   (652)  (1,086)

Operating profit
 before provisions       286     335      621     148      84      232

Customers:
- new specific          
  provisions            (177)   (223)    (400)   (133)   (130)    (263)
- releases and            
  recoveries              30      99      129      32      49       81
                        (147)   (124)    (271)   (101)    (81)    (182)
- net general release/     
  (charge)                 6      (4)       2      69      55      124
Total bad and
 doubtful
 debt charge            (141)   (128)    (269)    (32)    (26)     (58)

Provisions for
 contingent
 liabilities             (11)     41       30     (34)     27       (7)

Amounts written off
 fixed asset               
 investments              (1)     (5)      (6)    (15)    (47)     (62)

Operating profit         133     243      376      67      38      105

Share of operating
 profit
 in associates             -       1        1       -       1        1
Investments and fixed
 assets
 disposal gains            1      37       38       -       9        9
Profit before tax        134     281      415      67      48      115

10. Registers of shareholders

The Overseas Branch Register of shareholders in Hong Kong will be closed for one
day, on Friday 18 March 2005. Any person who has acquired shares registered on
the Hong Kong Branch Register but who has not lodged the share transfer with the
Hong Kong Branch Registrar should do so before 4.00 pm on Thursday 17 March 2005
in order to receive the fourth interim dividend for 2004. Transfers may not be
made to or from the Hong Kong Overseas Branch Register while that Branch
Register is closed.

Any person who has acquired shares registered on the Principal Register in the
United Kingdom but who has not lodged the share transfer with the Principal
Registrar should do so before 4.00 pm on Friday 18 March 2005 in order to
receive the dividend.

Any person who has acquired shares registered on the Overseas Branch Register of
shareholders in Bermuda but who has not lodged the share transfer with the
Bermuda Branch Registrar should do so before 4.00 pm on Friday 18 March 2005 in
order to receive the dividend.

Transfers of American Depositary Shares should be lodged with the depositary by
12 noon on Friday 18 March 2005 in order to receive the dividend.

11. Foreign currency amounts

The sterling and Hong Kong dollar equivalent figures in the consolidated profit
and loss account and balance sheet are for information only. These are
translated at the average rate for the period for the profit and loss account
and the closing rate for the balance sheet as follows:

Period end                                 31Dec04        31Dec03

Closing :         HK$/US$                    7.773          7.763
                  £/US$                      0.517          0.560

Average :         HK$/US$                    7.789          7.787
                  £/US$                      0.546          0.612

12. Litigation

HSBC, through a number of its subsidiary undertakings, is named in and is
defending legal actions in various jurisdictions arising from its normal
business. None of these proceedings is regarded as material litigation.

13. Dealings in HSBC Holdings shares

Except for dealings as intermediaries by HSBC Bank plc, HSBC CCF Financial
Products (France) SNC and The Hongkong and Shanghai Banking Corporation Limited,
which are members of a European Economic Area exchange in market-making and
other dealing activities, neither the Company nor any subsidiary undertaking has
bought, sold or redeemed any securities of the Company during the year ended 31
December 2004.

14. Statutory accounts

The information in this news release does not constitute statutory accounts
within the meaning of Section 240 of the Companies Act 1985 (the Act). The
statutory accounts for the year ended 31 December 2004 will be delivered to the
Registrar of Companies in England and Wales in accordance with Section 242 of
the Act and filed with the US Securities and Exchange Commission. The auditor
has reported on those accounts; the report was unqualified and did not contain a
statement under Section 237(2) or (3) of the Act.

15. Forward-looking statements

This news release contains certain forward-looking statements with respect to
the financial condition, results of operations and business of the Group. These
forward-looking statements represent the Group's expectations or beliefs
concerning future events and involve known and unknown risks and uncertainty
that could cause actual results, performance or events to differ materially from
those expressed or implied in such statements. Certain statements, such as those
that include the words 'potential', 'estimated', and similar expressions or
variations on such expressions may be considered 'forward-looking statements'.

16. Corporate governance

HSBC is committed to high standards of corporate governance. Throughout 2004,
HSBC Holdings has complied with the code provisions of the Combined Code on
corporate governance appended to the Listing Rules of the Financial Services
Authority and with the provisions of Appendix 14 to the Rules Governing the
Listing of Securities on The Stock Exchange of Hong Kong Limited.

Appendix 14 to the Rules Governing the Listing of Securities on The Stock
Exchange of Hong Kong Limited was substantially revised during 2004. The new
provisions of Appendix 14 will apply for subsequent reporting periods.

The members of the Board of Directors of HSBC Holdings plc are:
Sir John Bond, Baroness Dunn*, Sir Brian Moffat+, S K Green, A W Jebson, W F
Aldinger, Lord Butler+, R K F Ch'ien+, D G Eldon, R A Fairhead+, D J Flint, W K
L Fung+, M F Geoghegan, S Hintze+, Sir John Kemp-Welch+, Sir Mark Moody-Stuart+,
S W Newton+, H Sohmen*, C S Taylor+ and Sir Brian Williamson+.

J D Coombe+ and J W J Hughes-Hallett+ have been appointed Directors with 
effect from 1 March 2005.
           
* Non-executive Director
+ Independent non-executive director
            
The Group Audit Committee has reviewed the annual results for 2004.

17. Annual Review and Annual Report and Accounts

The Annual Review 2004 and/or Annual Report and Accounts 2004 will be mailed to
shareholders on or about 31 March 2005. Copies may be obtained from Group
Corporate Affairs, HSBC Holdings plc, 8 Canada Square, London E14 5HQ, United
Kingdom; Group Public Affairs, The Hongkong and Shanghai Banking Corporation
Limited, 1 Queen's Road Central, Hong Kong; Group Public Affairs, HSBC Bank USA 
N.A., 452 Fifth Avenue, New York, NY 10018, USA; CCF, Direction de la Communication,
109 avenue des Champs-Elysees, 75419 Paris Cedex 08, France; or from the HSBC
Group website - www.hsbc.com.

Chinese translations of the Annual Review and Annual Report and Accounts may be
obtained on request from Computershare Hong Kong Investor Services Limited,
Hopewell Centre, 46th Floor, 183 Queen's Road East, Wan Chai, Hong Kong.

A French translation of the Annual Review may be obtained on request from CCF,
Direction de la Communication, 109 avenue des Champs-Elysees, 75419 Paris Cedex
08, France.

The Annual Report and Accounts and Annual Review will be available on the Stock
Exchange of Hong Kong's website - www.hkex.com.hk.

Custodians or nominees that wish to distribute copies of the Annual Review and/
or Annual Report and Accounts to their clients may request copies for collection
by writing to Group Corporate Affairs at the address given above. Requests must
be received no later than 7 March 2005.

18. Annual General Meeting

The Annual General Meeting of the Company will be held at the Barbican Hall,
Barbican Centre, London EC2 on Friday 27 May 2005 at 11 a.m.

Notice of the meeting will be mailed to shareholders on or about 31 March 2005.

19. Interim results for 2005

The interim results for the six months to 30 June 2005 will be announced on
Monday 1 August 2005.

20. Proposed dividends for 2005

The Board has adopted a policy of paying quarterly dividends. Under this policy
it is intended to have a pattern of three equal interim dividends with a
variable fourth interim dividend. It is envisaged that the first interim
dividend in respect of 2005 will be US$0.14 per share. The proposed timetables
for the dividends in respect of 2005 are:

First interim dividend for 2005

Announcement                                                          3 May 2005

Shares quoted ex-dividend in London, Hong Kong and Bermuda;
American Depositary Shares quoted ex-dividend in New York            18 May 2005

Record date and closure of Hong Kong
Overseas Branch Register of shareholders for one day                 20 May 2005

Shares quoted ex-dividend in Paris                                   23 May 2005

Payment date                                                         6 July 2005

Second interim dividend for 2005

Announcement                                                       1 August 2005

Shares quoted ex-dividend in London, Hong Kong and Bermuda;
American Depositary Shares quoted ex-dividend in New York         17 August 2005

Record date and closure of Hong Kong
Overseas Branch Register of shareholders for one day              19 August 2005

Shares quoted ex-dividend in Paris                                22 August 2005

Payment date                                                      5 October 2005

Third interim dividend for 2005

Announcement                                                     7 November 2005

American Depositary Shares quoted ex-dividend in New York       22 November 2005

Shares quoted ex-dividend in London, Hong Kong and Bermuda      23 November 2005

Record date and closure of Hong Kong
Overseas Branch Register of shareholders for one day            25 November 2005

Shares quoted ex-dividend in Paris                              28 November 2005

Payment date                                                     19 January 2006

Fourth interim dividend for 2005

Announcement                                                        6 March 2006

Shares quoted ex-dividend in London, Hong Kong and Bermuda;
American Depositary Shares quoted ex-dividend in New York          22 March 2006

Record date and closure of Hong Kong
Overseas Branch Register of shareholders for one day               24 March 2006

Shares quoted ex-dividend in Paris                                 27 March 2006

Payment date                                                         11 May 2006

21. News release

Copies of this news release may be obtained from Group Corporate Affairs, HSBC
Holdings plc, 8 Canada Square, London E14 5HQ, United Kingdom; Group Public Affairs, 
The Hongkong and Shanghai Banking Corporation Limited, 1 Queen's Road Central, 
Hong Kong; HSBC Bank USA N.A., 452 Fifth Avenue, New York, NY 10018, USA; CCF, Direction 
de la Communication, 109 avenue des Champs-Elysees, 75419 Paris Cedex 08, France. The
news release will also be available on the HSBC Group website - www.hsbc.com.

22. For further information contact:

London                                        Hong Kong
Michael Broadbent                             David Hall
Director of Group Corporate Affairs           Head of Group Public Affairs (Asia)
Telephone: [phone]                   Telephone : [phone]

Richard Beck                                  Gareth Hewett
Head of Group External Relations              Senior External Relations Manager
Telephone: [phone]                   Telephone: [phone]

Patrick McGuinness
Senior Manager Investor Relations
Telephone: [phone]

New York                                      Paris
Linda Stryker-Luftig                          Chantal Nedjib
Senior Vice President                         Managing Director, Corporate Communications
Group Public Affairs                          Telephone: [phone]
Telephone: [phone]

                                              Gilberte Lombard
                                              Investor Relations Director
                                              Telephone: [phone]







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