HSBC Subsid 1Q04 Results

HSBC Holdings PLC
06 May 2004

The following text is the English translation of a news release issued in
Germany by HSBC Holdings plc's subsidiary.

                         HSBC TRINKAUS & BURKHARDT KGaA
                           FIRST QUARTER 2004 RESULTS

                   Operating profits up by nearly 60 per cent

HSBC Trinkaus & Burkhardt, which is indirectly approximately 73.5 per cent owned
by HSBC Holdings plc, reported a strong increase in profits for the first
quarter of 2004. The bank increased its operating profits by EUR10.8 million, or
59.9 per cent, to EUR28.8 million compared to the same period in 2003. Net
profit increased by EUR6 million, or 59.4 per cent, to EUR16.1 million compared
to the same period in 2003.

The main factors underlying this very positive development included, firstly,
consistent implementation of the well-proven strategy of concentration on three
target groups: high net worth private clients, corporate clients and
institutional investors. This clear customer focus enabled the bank to steadily
improve its competitive position, extend existing client relationships and win
new clients. Secondly, developments in the financial markets as well as
consistently modest lending provision costs both had a favourable impact on the
first quarter's results.

Net fees and commissions, the most important element of the bank's profits, rose
by 16.1 per cent, or EUR7.6 million, in the first quarter of 2004 compared to
the same period of 2003 to EUR54.9 million. Client business was boosted by
greater activity, in particular in securities transactions. In the corporate
segment, international business expanded considerably due to close co-operation
with the HSBC Group worldwide.

On the client business side, net interest income was virtually unchanged. Net
interest income from financial assets fell, owing to lower interest rates and
slightly lower volumes. Trading profits more than doubled in the first quarter,
compared to the first quarter of 2003, increasing by EUR11.9 million to EUR21.1
million. The strongest contribution came from trading in equities and equities
derivatives.

Lending provisions remained low as a result of a consistently conservative
approach to the assessment of lending risk and to the bank's effective risk
management policies and practice.

Despite an increase in total administrative expenses of 11.3 per cent, or EUR6.3
million, to EUR62.3 million, the cost:income ratio fell below the target
threshold of 70 per cent to 68.2 per cent. The main reason for the increase in
administrative expenses was higher profit-related remuneration linked to the
welcome growth in operating revenues.

The Managing Partners maintain the view that their target of a double digit
percentage increase in operating profits in the 2004 financial year is
realistic. The very good first quarter lays a solid foundation for the
achievement of this objective. Nevertheless, the Managing Partners expect the
rise in operating profits for the full year to be substantially lower than the
60 per cent increase achieved in the first quarter of 2004 compared to the first
quarter of 2003. This is because the strong first quarter performance from
proprietary trading is not expected to be maintained throughout the year.

In client business, with further success in winning new clients in all segments,
the profit base has been extended. The level of net fees and commissions
nevertheless continues to be heavily dependent on developments in the financial
markets. The Managing Partners expect that there will be a number of attractive
public offerings in Germany this year, from which HSBC Trinkaus & Burkhardt
should also benefit.

As already announced at the bank's 2003 annual results press conference, HSBC
Trinkaus & Burkhardt is selling within the HSBC Group its 12.65 per cent
indirect shareholding in HSBC Guyerzeller Bank. The sale, which was concluded in
April, will yield an exceptional gain of approximately EUR18 million in the
second quarter of 2004.



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