4/4: CCF FY03

HSBC Holdings PLC
01 March 2004

The following is an English translation of the results news release issued in
French by CCF, HSBC Holdings plc's subsidiary in France.

               CCF 2003 ANNUAL RESULTS (FRENCH GAAP) - HIGHLIGHTS

   •Attributable profit up 11.7 per cent to €627 million.

   •Operating profit before provisions and excluding gains on the equity
    investment portfolio up 11.3 per cent. Including equity investment portfolio
    gains, performance was marginally up at €731 million.

   •Efficiency improved as operating costs were well contained, with cost:
    income ratio falling from 71.8 per cent to 69.8 per cent excluding equity
    investment portfolio; 68.8 per cent including equity investment portfolio.

   •Credit quality was satisfactory with provisioning requirements dominated
    by provisions against two deteriorating industries.

   •Return on invested capital of 18.1 per cent compared with 16.3 per cent
    in 2002.

By business segment:

   •Retail and commercial banking: a good performance with operating profit
    before provisions up €75 million or 17.3 per cent.

   •Corporate, investment banking and markets: operating profit before
    provisions up €52 million or 29.3 per cent.

   •Asset management and private banking: funds under management up
    22.5 per cent to €63.6 billion, but operating profit before provisions
    depressed by €2 million because of a persistently difficult environment in
    private banking and the cost of restructuring the business.

Financial Results

Comment by Charles de Croisset, Chairman:

"Once again, CCF has delivered a robust performance amid a persistently
difficult economic climate. Drawing on the talent of our own teams and on
synergies with the HSBC Group, we continue to pursue our strategy of growth in
our target markets and have succeeded in achieving some very ambitious
commercial goals.

"I am leaving CCF today after 24 years with the senior management team. During
that time, net profit has risen thirtyfold. Since becoming part of the HSBC
Group in 2000, which was a particularly good year for the French banking sector,
CCF has maintained growth with a 31 per cent increase in net profit.

"Our integration with the HSBC Group is now complete and I believe CCF has the
means to continue its growth under optimum conditions, in the capable hands of
its new chairman, Charles-Henri Filippi."

CCF's financial results in 2003

CCF made a net attributable profit (excluding goodwill amortisation) of €692
million in 2003, an increase of 14.9 per cent compared with 2002. On a reported
basis, the net attributable profit for 2003 was €627 million, an increase of
11.7 per cent on 2002.

In a relatively difficult economic environment, operating income from CCF's core
businesses rose by 3.7 per cent to €2,306 million. Including the sharp decline
in private equity revenues, total operating income rose by 0.4 per cent to
€2,345 million.

Operating costs were kept well under control at €1,614 million, an increase of
just 0.4 per cent after 1.5 per cent in 2002. This was despite the cost of
restructuring the private banking business.

Operating profit before provisions from core businesses increased by 11.3
per cent and the cost:income ratio fell from 71.8 per cent to 69.8 per cent.
After taking into account private equity activity, operating profit before
provisions increased by 0.2 per cent to €731 million.

Below operating profit before provisions, an exceptionally low tax charge
following settlement of prior year items, together with a reduction in the
reserve for general banking risks, more than offset the movement in the charge
for provisions against two deteriorating industries and the decrease of
intra-group capital gains.

Shareholders' funds amounted to €3.4 billion after the year's transfer to
retained earnings and accruing for a payout ratio of 74.2 per cent. The tier one
capital ratio remained high at 8.8 per cent. Return on equity, calculated on the
basis of average shareholders' funds after the year's transfer to retained
earnings, stood at 18.1 per cent including the write-back from the reserve for
general banking risks, and at 15.7 per cent excluding this write-back.

In light of these results, the Board is proposing a dividend of €6.25 per share.
The total dividend payment will be €465 million, representing a payout of
74.2 per cent.

CCF's development within the HSBC Group

CCF's integration within the HSBC Group is now complete. The benefits can been
seen in the commercial and financial performance achieved by the company's core
businesses.

CCF has continued to develop its business activities and rationalise its
organisational structure to improve efficiency and productivity. Its goal is to
become one of France's leading banks in its target markets, drawing on the
resources of the one of the world's leading banking and financial services
organisations.

Two restructuring projects took place in 2003:

   •In private banking, CCF combined its four specialist subsidiaries - HSBC
    Republic, CCF Banque Privee Internationale, Banque Eurofin and Banque du
    Louvre - to create HSBC Private Bank France on 1 October 2003. Drawing on an
    internationally recognised brand name, the new bank will continue with all
    the business activities previously conducted by the four subsidiaries,
    combining their expertise and generating major synergies within the business
    area.

   •In employee savings, CCF bought out the minority interests in Elysees
    Fonds, which was then merged with Elysees Gestion to create HSBC CCF Epargne
    Entreprise on 1 January 2004. The new subsidiary is a leading player in the
    employee savings market and offers a comprehensive range of products and
    services.

The retail banking business continued to expand and improve its efficiency.
During the year, it acquired two additional Banque Worms branches following the
11 acquired in 2002, and combined all administrative support services for the
CCF branch network in the Paris region.

Lastly, CCF has embarked on a radical upgrade of its information systems and
databases. During the year, preparations were made for CCF's migration to HUB,
the HSBC Group's universal banking system, which will be rolled out gradually
from the end of 2004. In time, the new system will lead to large cost savings
and revenue synergies within the HSBC Group. CCF has also developed a financial
data warehouse for all its business units, which will facilitate reporting.

Business segment results

Retail and commercial banking

Retail and commercial banking accounts for 66.8 per cent of CCF's operating
income. Once again, this business produced good results in 2003, with
4.6 per cent growth in operating income to €1,566 million and a decrease of
0.6 per cent in operating costs to €1,058 million, leading to a 17.3 per cent
increase in operating profit before provisions to €508 million.

Both the CCF retail network (operating profit before provisions up
19.9 per cent) and the regional banking subsidiaries (operating profit before
provisions up 15.6 per cent) contributed to this growth. The cost:income ratio
improved by more than 3.5 percentage points to 67.6 per cent. This performance
reflects a dynamic commercial approach, supported by the implementation of
effective customer relations management (CRM) tools. The total number of retail
customers increased by 6.0 per cent during the year.

Net interest income was the main driver of growth in operating income,
reflecting an increase during the year in both customer assets and customer
loans, particularly in the personal segment. Another contributory factor was an
improvement in interest spreads.

Total loans and advances to customers increased by 2.2 per cent, although this
figure masks some contrasting trends: loans and advances to personal customers
progressed by 7.6 per cent, with 11.0 per cent growth in outstanding mortgage
loans and 25.0 per cent growth in new mortgage lending. By contrast, demand for
business loans (mainly on short-term loans) decreased by 1.3 per cent due to
poor economic conditions, although medium and long-term business loans rose by
3.9 per cent.

Sight deposits were up by 3.1 per cent in both the personal and commercial
segments. Special regulated savings accounts rose by 15.5 per cent, reflecting a
cautious attitude on the part of personal customers.

A dynamic commercial approach, particularly in the mid-corporate market, led to
an increase in fee income. Furthermore, the successful launch of new structured
products partly offset the decrease in equity-related fee and commission income.
International business services such as trade services, cash management and the
regional treasury centres made a strong contribution to winning new customers in
this market.

Personal customers now have access to HSBC's Visa Infinite card, which is aimed
at a highly selective customer base, as well as HSBC Premier International
Services, designed for the bank's most valuable international customers.

Multi-channel banking continues to develop, with the establishment of a call
centre with staff who are able to provide customers with immediate advice. The
number of customers using CCF's e-banking facilities has increased by
37.0 per cent, with more than six million log-ins during 2003.

Corporate, investment banking and markets

Corporate, investment banking and markets reported an excellent performance,
with 9.8 per cent growth in operating income to €473 million and a 4.0 per cent
decrease in operating costs to €243 million. Operating profit before provisions
rose by 29.3 per cent to €230 million and the cost:income ratio improved by
almost 8 percentage points to 51.3 per cent.

Corporate banking continued to grow, with operating profit before provisions up
by 10.5 per cent to €123 million. This performance was driven principally by
structured finance and syndicated finance. In this latter segment, CCF ranks
fourth in the French issuers market, according to Loanware Dealogic. International
project finance was affected by a weaker dollar and a decline in the number of
large contracts due to difficulties experienced by some major exporters. Property
lending was down slightly compared with 2002, a year in which CCF completed several
large deals.

Fixed income and forex capital market activities reported strong growth of
87.6 per cent in operating profit before provisions to €102 million. CCF
continued to win new major clients in both the corporate and institutional
segments, particularly in fixed income derivatives in Europe and Asia, and in
origination business for clients in the eurozone. HSBC CCF has continued to rise
in the league tables and now ranks second in euro corporate bonds and third for
corporates and financial institutions combined. This illustrates the continued
synergies brought by integration with the HSBC Group. HSBC CCF has also
strengthened its government bond trading capability, helping increase market
share among the HSBC Group's institutional clients.

Investment banking continued to suffer in persistently volatile markets,
reporting a 45.8 per cent decrease in operating profit before provisions to €8
million. Mergers and acquisitions remained active in a weak market. HSBC CCF
ranked 14th in the 2003 M&A league tables compiled by Les Echos and F&A
magazine, up two places compared with 2002. CCF now ranks second in the French
leveraged buy-out market (according to Mergermarket). The volatile
stockmarkets continued to put pressure on the equities business. In addition,
CCF's performance in 2002 was bolstered by the HSBC Group's participation in
Europe's largest initial public offering for the year, for Autoroutes du Sud de
la France (ASF). This was managed by HSBC's corporate finance team in France.
Major investment has been made in the equity derivatives business and CCF has
become the centre of expertise in this area for the HSBC Group.

Asset management and private banking

Asset management achieved a strong performance. Funds under management increased
by 28.9 per cent to €47.3 billion. Operating income rose by 12.1 per cent to
€115 million and operating costs by 7.8 per cent to €96 million leading to
41.3 per cent growth in operating profit before provisions of €19 million.

HSBC Asset Management Europe consolidated its presence in the institutional
segment with a number of major commercial successes. Funds under management
increased by 17.3 per cent to €31.1 billion. This growth was achieved through an
influx of new corporate clients and the distribution in Europe of two equity
products new to the region, HGIF Chinese Equity and HGIF Indian Equity. This is
another example of the benefits of integration with the HSBC Group. HSBC AME
also won several awards for its investment performance. The HSBC GIF Pan European
Equity fund was awarded best five-year performance by La Tribune/S&P and was
ranked third by the Journal des Finances.

Sinopia enjoyed considerable success in Hong Kong and the United Kingdom with
its capital protected investment funds, bringing in more than €5.7 billion of
new business. Funds under management increased by 68.4 per cent to €14.1
billion. This success is an excellent illustration of CCF's role as a specialist
for the HSBC Group in certain businesses, including quantitative investment
management.

In private banking, CCF combined its four specialist subsidiaries to create HSBC
Private Bank France, a leading player in the French market. Funds under
management grew by 7.2 per cent to €16.3 billion despite a continued volatile
environment. The business produced a positive result before provisions despite
merger-related costs of restructuring, and for employee stock options and
liquidity contracts. Results are expected to recover sharply in 2004, driven by
revenue and cost synergies generated by the merger.

Finally, several funds managed by Louvre Gestion, a subsidiary of the new bank,
won various industry awards, including one for best performance, from La Tribune
/S&P for the Integral Valor fund (five-year, three-year and one-year).

Eurozone

Group branches in the eurozone managed by CCF^ reported a 9.3 per cent increase
in banking revenues, following a series of prime lending transactions to major
corporates in Italy, Spain, France and Belgium. A further contributory factor
was a 4.6 per cent decrease in operating costs, principally due to disposal of
the private banking business in Italy. Operating profit before provisions was up
40.0 per cent.

^CCF's published figures only include the results of HSBC branches in
Belgium and Greece, which are legally owned by CCF. HSBC branches in Italy,
Spain, France and the Netherlands are managed by CCF but are legally owned
by HSBC Bank plc.

Equity portfolio operations

Private equity and equity investment operations made a contrasting contribution
to results. In 2003, Charterhouse's private equity portfolio did not generate
the significant capital gains it did in 2002. Operating profit before provisions
therefore amounted to only €34 million in 2003 compared with €103 million in
2002, a decrease of €70 million which depressed growth in CCF's overall
operating results. However, following the recovery of the stockmarkets during
2003, capital gains were realised on the listed portfolio which had been
affected last year by substantial write-downs. Net profit amounted to
€47 million in 2003 compared with €29 million the previous year, a rise of
€18 million. At 31 December 2003, CCF's equity investment portfolio was valued
at €887 million, based on latest prices for listed equities and most recent
valuations for unlisted equities, generating unrealised capital gains of
€253 million.

Main Items of Consolidated Profit and Loss Accounts

Financial results (French GAAP)^

                                                     Of which
                                                    portfolio                   Other
Figures in                                    %    activities         %    activities         %
€ million              2003      2002    change          2003    change          2003    change

Net interest income   1,010       975       3.6           (11)        -         1,021
Other operating
  income              1,335     1,362      (2.0)           50                   1,285
Operating income      2,345     2,337       0.4            39     (65.9)        2,306       3.7
Staff and
  administration
  expenses           (1,510)   (1,503)      0.5            (4)                 (1,506)
Depreciation and
  amortisation of
  intangibles          (103)     (104)     (0.6)           (1)                   (102)
Operating expenses^^ (1,614)   (1,607)      0.4            (5)    (52.3)       (1,609)      0.8
Operating profit
  before provisions     731       730       0.2            34     (67.2)          697      11.3
Provisions             (138)       34         -             -         -          (138)        -
Operating profit
  after provisions      594       764     (22.3)           34     (67.3)          559     (15.3)
Gains/(loss) on 
  disposal of
  fixed assets           32       (30)        -            22         -            10         -
Other income from
  associates and
  joint-ventures         16        16      (0.3)            7         -             9         -
Tax                     (44)     (213)        -           (16)        -           (28)        -
Profit on ordinary
  activities after
  tax                   598       538      11.3            47         -           551       8.3
Exceptional items        10        87         -             -         -            10         -
Goodwill amortisation   (65)      (40)        -             -         -           (65)        -
Reserve for general
  banking risks          85       (18)                      -         -            85
Minority interests       (2)       (5)        -             -         -            (2)
Profit attributable
  to shareholders       627       562      11.7            47      62.0           581       9.0
Profit attributable
 (excluding goodwill
  amortisation)         692       602      14.9            47      62.0           645      12.6

Analysis of figures by business segment (financial figures)^

Figures in € million                         2003     2002    % change

Operating income
Retail and commercial banking               1,566    1,497         4.6
Corporate, investment banking & markets       473      431         9.8
Asset management and private banking          239      229         4.7
Other activities and miscellaneous^^^          28       67           -
Total core businesses                       2,306    2,224         3.7
Equity investment portfolio                    39      113           -
                                   Total    2,345    2,337         0.4

Operating profit before provisions
Retail and commercial banking                 508      433        17.3
Corporate, investment banking & markets       230      178        29.3
Asset management and private banking           20       22        (7.4)
Other activities and miscellaneous^^^         (61)      (6)          -
Total core businesses                         697      627        11.3
Equity investment portfolio                    34      103           -
                                   Total      731      730         0.2

Results of Eurozone business line (managed perimeter)^^^^

                                                                     %
Figures in € million                      2003       2002       change

Operating income                           105         96          9.3
Operating expenses                         (63)       (66)        (4.6)
Operating profit before provisions          42         30         40.0

^Changes in scope have not been restated in the reported figures as they are
limited (disposal of Loxxia and HSIL in 2002 and acquisition of HSBC
Republic France in 2002) and have no significant impact:
- Impact of changes in scope of business on operating income: €(15) million
- Impact of changes in scope of business on operating profit before
  provisions: €(6) million
- Excluding changes in scope of business, operating income would have
  increased by 1.0 per cent and operating profit by 1.0 per cent.

^^2002 costs have been restated in order to integrate a change in accounting
methodology on two items. These items were previously included in
'exceptional results' and are now included in operating expenses: cost of
stock options (€17 million) and contribution towards the banking system
stabilisation mechanism (€2 million).

^^^Return on free capital and miscellaneous activities.

^^^^CCF's published figures do not include the results of all of the
Eurozone branches it manages, as only CCF Greece and CCF Brussels are
legally owned by CCF. The HSBC branches in Italy, Spain, France and the
Netherlands are managed by CCF but are legally owned by HSBC.

For more information about CCF, its activities, products and services, visit
www.ccf.com.








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