HSBC Holdings plc pt 4/4

HSBC Holdings PLC
05 March 2007


HSBC Rest of Asia-Pacific Operations
                     Half-year ended                          Half-year ended
Figures in 
  US$m         30Jun06       31Dec06         2006       30Jun05       31Dec05         2005
Interest 
  income         3,548         4,145        7,693         2,669         3,004        5,673
Interest
  expense       (2,069)       (2,577)      (4,646)       (1,512)       (1,749)      (3,261)
Net interest
  income         1,479         1,568        3,047         1,157         1,255        2,412
Fee income         949           963        1,912           763           856        1,619
Fee expense       (164)         (126)        (290)         (131)         (148)        (279)
Net fee income     785           837        1,622           632           708        1,340
Net trading
  income           551           630        1,181           387           473          860
Net income from 
  financial
  instruments
  designated at
  fair value        (5)           84           79            14            44           58
Gains less losses 
  from financial
  investments       27            14           41             2            16           18
Dividend income      -             5            5             4             1            5
Net earned 
  insurance
  premiums          89            85          174            29           126          155
Other operating
  income           288           477          765           131           204          335
Total operating
  income         3,214         3,700        6,914         2,356         2,827        5,183
Net insurance
  claims 
  incurred and
  movement in
  policyholders'
  liabilities      (63)         (129)        (192)          (37)         (129)        (166)
Net operating
  income before
  loan impairment
  charges and
  other credit 
  risk
  provisions     3,151         3,571        6,722         2,319         2,698        5,017
Loan
impairment
charges and
other credit
risk
provisions        (271)         (241)        (512)          (23)         (111)        (134)
Net operating
  income         2,880         3,330        6,210         2,296         2,587        4,883
Total operating
  expenses      (1,609)       (1,939)      (3,548)       (1,264)       (1,498)      (2,762)
Operating 
  profit         1,271         1,391        2,662         1,032         1,089        2,121
Share of profit 
  in associates 
  and joint 
  ventures         386           479          865           248           205          453
Profit before
  tax            1,657         1,870        3,527         1,280         1,294        2,574

HSBC North American Operations
                     Half-year ended                           Half-year ended
Figures in 
  US$m         30Jun06       31Dec06          2006       30Jun05       31Dec05         2005
Interest
  income        13,514        14,445        27,959        10,886        11,303       22,189
Interest
  expense       (6,518)       (7,173)      (13,691)       (4,315)       (4,579)      (8,894)
Net interest
  income         6,996         7,272        14,268         6,571         6,724       13,295
Fee income       2,702         2,909         5,611         2,149         2,456        4,605
Fee expense       (390)         (455)         (845)         (300)         (353)        (653)
Net fee income   2,312         2,454         4,766         1,849         2,103        3,952
Net trading
  income           959           399         1,358           450           435          885
Net income from 
  financial
  instruments
  designated at
  fair value        24           (87)          (63)          284           150          434
Gains less losses 
  from financial
  investments       40            18            58            39             8           47
Dividend income     39            46            85            18            23           41
Net earned 
  insurance
  premiums         238           254           492           228           249          477
Other operating
  income           364           558           922           220           422          642
Total operating
  income        10,972        10,914        21,886         9,659        10,114       19,773
Net insurance
  claims
  incurred and
  movement in
  policyholders'
  liabilities     (117)         (142)         (259)         (120)         (112)        (232)
Net operating
  income before
  loan impairment
  charges and
  other credit
  risk
  provisions    10,855        10,772        21,627         9,539        10,002       19,541
Loan impairment
  charges and
  other credit
  risk
  provisions    (2,172)       (4,624)       (6,796)       (2,030)       (2,886)      (4,916)
Net operating
  income         8,683         6,148        14,831         7,509         7,116       14,625
Total operating
  expenses      (4,973)       (5,220)      (10,193)       (4,288)       (4,470)      (8,758)
Operating 
  profit         3,710           928         4,638         3,221         2,646        5,867
Share of profit 
  in associates 
  and joint 
  ventures          31            (1)           30            46             2           48
Profit before
  tax            3,741           927         4,668         3,267         2,648        5,915

HSBC Latin America Operations
                      Half-year ended                          Half-year ended
Figures in
  US$m          30Jun06       31Dec06         2006       30Jun05       31Dec05         2005
Interest income   3,497         3,792        7,289         3,498         2,635        6,133
Interest expense (1,493)       (1,599)      (3,092)       (1,984)         (807)      (2,791)
Net interest
  income          2,004         2,193        4,197         1,514         1,828        3,342
Fee income          933         1,042        1,975           684           797        1,481
Fee expense        (163)         (182)        (345)         (122)         (168)        (290)
Net fee income      770           860        1,630           562           629        1,191
Net trading income  258           279          537           289           248          537
Net income from 
  financial
  instruments
  designated at
  fair value        106           131          237            46           140          186
Gains less losses 
  from financial
  investments        38            46           84            39            41           80
Dividend income       3             3            6             2             3            5
Net earned 
  insurance
  premiums          522           554        1,076           403           468          871
Other operating
  income             41            50           91            58           228          286
Total operating
  income          3,742         4,116        7,858         2,913         3,585        6,498
Net insurance
  claims incurred 
  and movement in
  policyholders'
  liabilities      (489)         (534)      (1,023)         (350)         (442)        (792)
 Net operating
  income before
  loan
  impairment
  charges and 
  other credit
  risk
  provisions      3,253         3,582        6,835         2,563         3,143        5,706
Loan impairment
  charges and
  other credit
  risk
  provisions       (442)         (496)        (938)         (235)         (441)        (676)
Net operating
  income          2,811         3,086        5,897         2,328         2,702        5,030
Total operating
  expenses       (1,946)       (2,220)      (4,166)       (1,540)       (1,886)      (3,426)
Operating profit    865           866        1,731           788           816        1,604
Share of profit in
  associates and
  joint ventures      -             4            4             -             -            -
Profit before tax   865           870        1,735           788           816        1,604

10. Registers of shareholders

The Overseas Branch Register of shareholders in Hong Kong will be closed for one
day on Friday 23 March 2007. 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 4.00pm on Thursday 22 March 2007
in order to receive the fourth interim dividend for 2006, which will be payable
on Thursday 10 May 2007. 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 4.00pm on Friday 23 March 2007 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 4.00pm on Friday 23 March 2007 in
order to receive the dividend.

Transfers of American Depositary Shares should be lodged with the depositary by
12 noon on Friday 23 March 2007 in order to receive the dividend.

11. Foreign currency amounts

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

Year end                       31Dec06                   31Dec05

Closing:    HK$/US$              7.776                     7.754
            £/US$                0.509                     0.581

Average:    HK$/US$              7.769                     7.778
            £/US$                0.543                     0.550

12. Litigation

HSBC is party to legal actions in a number of jurisdictions including the UK,
Hong Kong and the US, arising out of its normal business operations. HSBC
considers that none of the actions is regarded as material, and none is expected
to result in a significant adverse effect on the financial position of HSBC,
either individually or in the aggregate. Management believes that adequate
provisions have been made in respect of such litigation. HSBC has not disclosed
any contingent liability associated with these legal actions because it is not
practicable to do so.

13. Dealings in HSBC Holdings plc shares

Except for dealings as intermediaries by HSBC Bank plc, HSBC Financial Products
(France) and The Hongkong and Shanghai Banking Corporation Limited, which are
members of a European Economic Area exchange, neither the Company nor any
subsidiaries has bought, sold or redeemed any securities of the Company during
the year ended 31 December 2006.

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 2006 will be delivered to the
Registrar of Companies in England and Wales in accordance with Section 242 of
the Act. The auditor has reported on those accounts. Its 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 HSBC. These
forward-looking statements represent HSBC'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. HSBC Holdings plc
has complied throughout 2006 with the applicable code provisions of the Combined
Code on Corporate Governance issued by the Financial Reporting Council ('the
Combined Code'), save for code provision A.2.2 as the Group Chairman did not on
appointment meet the Combined Code's independence criteria. On 26 May 2006 S K
Green, who had previously served as Group Chief Executive, became Group
Chairman. In accordance with the provisions of the Combined Code in the
circumstance where a Chief Executive becomes Chairman, the Board consulted major
shareholders in advance of the appointment. Sir Brian Moffat, the senior
independent non-executive Director and the Chairman of the Nomination Committee,
wrote to all shareholders to explain the Board's decision and the reasons for
the appointment.

HSBC Holdings plc has complied throughout 2006 with all applicable code
provisions of the Code on Corporate Governance Practices in Appendix 14 to the
Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong
Limited.

The Board of HSBC Holdings plc has adopted a code of conduct for transactions in
HSBC Group securities by Directors that complies with The Model Code in the
Listing Rules of the Financial Services Authority and with The Model Code for
Securities Transactions by Directors of Listed Issuers ('Hong Kong Model Code')
set out in the Rules Governing the Listing of Securities on The Stock Exchange
of Hong Kong Limited save that The Stock Exchange of Hong Kong has granted
certain waivers from strict compliance with the Hong Kong Model Code, primarily
to take into account accepted practices in the UK, particularly in respect of
employee share plans. Following a specific enquiry, each Director has confirmed
he or she has complied with the code of conduct for transactions in HSBC Group
securities throughout 2006.

The Directors of HSBC Holdings plc are:
Baroness Dunn^, Sir Brian Moffat^^, S K Green, Lord Butler^^, R K F Ch'ien^^, J
D Coombe^^, R A Fairhead^^, D J Flint, W K L Fung^^, M F Geoghegan, S Hintze^^,
J W J Hughes-Hallett^^, Sir Mark Moody-Stuart^^, G Morgan^^, S W Newton^^, S M
Robertson^^, H Sohmen^, and Sir Brian Williamson^^.

^ Non-executive Director
^^ Independent non-executive Director

The Group Audit Committee has reviewed the annual results for 2006.

17. Annual Review and Annual Report and Accounts

The Annual Review 2006 and/or Annual Report and Accounts 2006 will be mailed to
shareholders on or about Tuesday 3 April 2007. Copies may be obtained from Group
Communications, 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; Employee Communications, HSBC -
North America, 2700 Sanders Road, Prospect Heights, Illinois, 60070, USA; HSBC
France, Direction de la Communication, 103 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 HSBC
France, Direction de la Communication, 103 avenue des Champs Elysees, 75419
Paris Cedex 08, France.

The Annual Report and Accounts will be filed with the United States Securities
and Exchange Commission.

The Annual Report and Accounts 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 Communications at the address given above. Custodians and
nominees will need to request copies of the Annual Review 2006 and/or Annual
Report and Accounts 2006 no later than 12 March 2007.

18. Annual General Meeting

The Annual General Meeting of the Company will be held at the Barbican Hall,
Barbican Centre, London EC2 on Friday 25 May 2007 at 11 am.

Notice of the meeting will be mailed to shareholders on or about Tuesday 3 April
2007.

19. Interim results for 2007

The interim results for the six months to 30 June 2007 will be announced on
Monday 30 July 2007.

20. Proposed dividends for 2007

The Board has adopted a policy of paying quarterly interim dividends on the
ordinary shares. 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 2007 will be US$0.17 per ordinary
share. The proposed timetables for the dividends on the ordinary shares in
respect of 2007 are:

                            Interim dividends on the ordinary shares for 2007
                              First         Second         Third        Fourth

Announcement                30Apr07        30Jul07       05Nov07       03Mar08

ADSs quoted ex-dividend in  
New York                    16May07        15Aug07       20Nov07       19Mar08

Shares quoted ex-dividend   
  in London, Hong Kong and 
  Bermuda                   16May07        15Aug07       21Nov07       19Mar08

Record date and closure of  
  Hong Kong Overseas Branch
  Register of shareholders  
  for one day               18May07        17Aug07       23Nov07       25Mar08

Shares quoted ex-dividend   
  in Paris                  21May07        20Aug07       26Nov07       26Mar08

Payment date                05Jul07        04Oct07       16Jan08       07May08

21. News release

Copies of this news release may be obtained from Group Communications, HSBC
Holdings plc, 8 Canada Square, London E14 5HQ, United Kingdom; The Hongkong and
Shanghai Banking Corporation Limited, 1 Queen's Road Central, Hong Kong; HSBC
Bank USA, 452 Fifth Avenue, New York, NY 10018, USA; HSBC France, Direction de
la Communication, 103 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
Richard Beck                               David Hall
Group Communications Director              Head of Group Public Affairs (Asia)
Telephone: [phone]             Telephone: [phone]

Danielle Neben                             Gareth Hewett
Manager Investor Relations                 Senior External Relations Manager
Telephone: [phone]             Telephone: [phone]

Chicago                                    Paris
Lisa Sodeika                               Chantal Nedjib
Executive Vice President,                  Managing Director, Corporate Communications
Corporate Affairs                          Telephone: [phone]
Telephone: [phone]

Linda Recupero                             Gilberte Lombard
Executive Vice President,                  Investor Relations Director
Group Public Affairs                       Telephone: [phone]
Telephone: [phone]



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