CCF 2000 Results

HSBC Hldgs PLC
26 February 2001

HSBC Hldgs PLC
News Release 6 Part (1)of(1)

The following is an English translation of a news release
issued in French by HSBC Holdings' subsidiary in France.


                 CCF 2000 RESULTS - HIGHLIGHTS


*  Integration within the HSBC Group now nearly completed,
   holding out great promise for the future.

*  Robust growth in retail and commercial banking operating
   profit, especially in the CCF network, thanks to an aggressive
   drive to win new business including the opening of 21 new
   branches.

*  New strategic ambitions for Corporate and Investment
   Banking in line with HSBC, resulting in important mandates for
   major international corporates.

*  Strong growth in Asset Management in France and the UK,
   with an increase in the most profitable services.

*  First-class performances from CCF subsidiaries Eurofin and
   Banque du Louvre in Private Banking.


Financial Discussion    
                                              
CCF's consolidated net profit rose for the seventeenth
consecutive year.

On a consolidated basis, net profit at EUR478 million was up
6.3 per cent over the published figures for 1999. Net banking
income rose 6.2 per cent to EUR2,549 million, and operating
profit before provision increased by 3.9 per cent to EUR891
million. Net profit at CCF's parent company rose by 20.9 per
cent to EUR287 million. The tier one ratio remained high, at
8.5 per cent, confirming the strength of its balance sheet.

Integration into the HSBC Group, changes in CCF's structure
and various non-recurring items have changed like-for-like
comparisons of year-to-year published earnings. After
restatements^, operating income increased by 10.2 per cent,
operating profit before provisions rose 13.3 per cent and the
net profit was up 21.5 per cent. This was in line with CCF's
original objectives.

In a favourable economic environment, especially at the
beginning of 2000, all lines of business performed well.
Retail and commercial banking showed excellent growth with
operating income up 9.6 per cent and operating profit before
provisions up 28.9 per cent. Despite growing market
uncertainty in the second half of the year, investment and
corporate banking activities and results strengthened.
Operating income rose 13.7 per cent. Operating profit before
provisions increased by 25 per cent. Working alongside HSBC,
the prospects for CCF's business here are good. This is also
true for asset management and private banking, where
significant investments continued in 2000. Operating income
increased by 25.6 per cent and operating profit before
provisions rose 23.3 per cent.

Commenting on these results, Chairman and CEO Charles de
Croisset said:

'CCF has essentially completed its integration within the HSBC
Group in only four months. This integration is beginning to
pay off and will generate substantial synergies starting in
2001.

'CCF is now embarking on an ambitious growth plan. We plan to
accelerate growth in each of our businesses, optimising
synergies with the HSBC Group for the benefit of our
customers. CCF can now compete on equal terms with the largest
players in the market.'

^The main restatements concern changes in CCF's structure
(namely foreign branches, CCF Brazil, Charterhouse UK and the
absorption of HSBC's business in France, together with Banque
Pelletier). They also concern profits and charges relating to
the acquisition by HSBC and provisions for stock-related
compensation costs given to employees of certain subsidiaries
(chiefly Framlington). After restatements, operating income
increased to EUR2,393 million, operating profit before
provisions rose to EUR813 million and profit after tax was
EUR502 million.


Business Segment Results 

Retail and commercial banking

CCF's dynamism remains strong, as reflected in strong
performance in spite of market uncertainty and a less buoyant
environment at the year-end.

Operating income at EUR1,197 million was up 9.6 per cent
relative to 1999, primarily due to robust growth in fee income
and commissions (up 14.6 per cent), which accounted for 44 per
cent of operating income. Operating profit before provision
grew by 28.9 per cent to EUR350 million, leading to a
significant improvement in the cost:income ratio (67.5 per
cent excluding Societe Marseillaise de Credit (SMC)). This was
despite the impact of development costs in the CCF banking
network, following 10 branch openings and the recruitment of
additional sales staff. Net profit grew strongly again, up
40.3 per cent, thanks to particularly low bad debt charges.
ROE of 27.6 per cent improved significantly on the 1999 figure
of 23.1 per cent.

CCF's retail banking networks achieved strong growth in
business volumes. Loan commitments and outstandings increased
by 16.1 per cent to EUR14.3 billion, with an even greater
increase (up 20.2 per cent) in corporate lending for the CCF
network and in personal lending in the regional banks (up 16.2
per cent excluding SMC). Inflows of funds were again strong,
with a 12.7 per cent rise in sight deposits. Life insurance
products and equity unit trusts both registered robust growth.

Overall, the regional banks performed well. Union de Banques a
Paris (UBP) in particular reported excellent results. The
recovery plan being implemented at SMC is beginning to pay
off, and sales among personal clients were encouraging.

Loxxia and Slibail (a subsidiary of Credit Lyonnais) merged at
the end of the year, creating one of France's leading
equipment leasing companies.

Corporate and investment banking

In a year of contrasts, results in corporate and investment
banking were highly encouraging in terms of the potential for
synergies with HSBC.

After adjusting for changes in CCF's structure, operating
income (EUR558 million) rose 13.7 per cent relative to 1999.
This was aided by an excellent performance in corporate
banking (operating income up 25.2 per cent) and a combination
of vigorous growth in volumes due to strong demand for
financing from large corporates and improved margins. Fixed
income and foreign exchange activities faced more difficult
conditions, but generated a 13.2 per cent rise in revenues.
The integration of HSBC CCF Investment Bank into HSBC was a
major focus of attention during the second half of the year
and results in equity markets, advisory and structured
financing activities were generally satisfactory, with
revenues up 12.7 per cent. Globally, operating profit before
provisions advanced 25 per cent to EUR217 million primarily
due to careful cost control, and net profit rose by 31.4 per
cent. As a result, ROE improved to 17.7 per cent (adjusted for
changes in CCF's structure).


Asset management and private banking

Despite deteriorating market conditions at the end of the
year, after adjusting for changes in CCF's structure, asset
management and private banking revenues were up sharply, by
25.6 per cent, to EUR450 million. Growth was especially robust
in asset management, where operating income advanced 35.6 per
cent, due mainly to faster growth in equity products offering
better returns, and to an outstanding performance by
Framlington. Meanwhile, Banque du Louvre and Eurofin performed
well in France, contributing to a 18.9 per cent increase in
private banking sector revenues. In spite of start-up costs in
asset management (with Be-Partner and CCF SEI), together with
investments in technology and recruitment to bolster the
private banking teams, operating profit before provisions rose
23.3 per cent to EUR140 million.

Total funds under management by CCF were up 7.5 per cent at
EUR83.5 billion. This growth in outstandings stems from new
inflows of funds, because of the negative impact of market
trends at the end of the year. Equity and diversified products
increased their share of assets under management from 46 per
cent at the end of 1999 to 51 per cent at the end of 2000.

Additional Information

1. Dividends
The Board will propose to the Ordinary Annual General Meeting
called for 29 March 2001 to declare a dividend of EUR4.10 per share,
representing a dividend pay-out equal to EUR307 million, as
against EUR114 million in respect of 1999.

2. Financial review

Balance sheet

Figures in euros m                          1999       2000
Total assets                              69,273     72,139
                                                           
Shareholder's funds (group share)          3,137      3,335
                                                           
Capital ratios                                             
- Tier one capital (%)                       8.9        8.5
- Total capital (%)                         10.9       10.1

Results of major lines of business
  (same scope, without Brazil and non-recurrent items)


                      Operating income   Operating profit    ROE (%)
Figures in euros m                       before provision
                                        %                   %            
                       1999  2000  change  1999  2000  change  1999  2000
Retail and                                                            
 commercial banking   1,092 1,197     9.6   271   350    28.9  23.1  27.6
Corporate and                                                         
  investment banking    491   558    13.7   174   217    25.0  16.0  17.7
Asset management and                                                  
  private banking       358   450    25.6   114   140    23.3    NS    NS