HSBC subsid FY02 results

HSBC Holdings PLC
10 April 2003

The following is a translation of a news release issued today by Societe
Marseillaise de Credit, a wholly-owned, indirectly-held subsidiary of HSBC
Holdings plc.

                         SOCIETE MARSEILLAISE DE CREDIT

                              2002 ANNUAL RESULTS

Societe Marseillaise de Credit delivered strong profit growth in 2002,
capitalising on a continued buoyant economy in Southern France despite the
difficult economic and market conditions at national level.

* Operating income was up 7.5 per cent to €186 million.

* Operating costs, which have been reduced significantly in past years, remained
stable at €122 million.

* Operating profit before provisions was up 23.1 per cent to €64 million, with a
further improvement in the cost:income ratio, from 69.9 per cent to 65.6 per
cent.

* Profit after tax increased by 35.1 per cent to €50 million, the third
consecutive year of growth in net profits.

* Overall client funds rose by 7.0 per cent to €4,093 million, driven by a 5.5
per cent growth in sight deposits and a notable increase in life insurance and
mutual funds.

* New lending grew by 22.2 per cent, led mainly by retail mortgage finance and
medium/long-term business lending. Business loans continue to account for 60.0
per cent of the total loan book.

* Credit exposure remained under tight control, allowing a net write-back of
provisions of €16 million.

The bank continued to invest in its branch network during the year, spending
some €4 million on renovating, refitting and improving security at 30 branches.


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