HSBC Subsid Results

HSBC Hldgs PLC
26 April 2001

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


                   HSBC TRINKAUS & BURKHARDT
                 2000 RESULTS - A RECORD YEAR

HSBC Trinkaus & Burkhardt, which is approximately 73.5 per
cent indirectly owned by HSBC Holdings plc, achieved a very
positive increase in profits for the financial year ended 31
December 2000.

Consolidated operating profits increased 23.8 per cent to
EUR127.3 million. All income streams contributed to this
increase, but predominant in the year's successful
performance was net commission income, which increased 26.9
per cent to EUR230.5 million. Net interest income after risk
provisions increased 18.1 per cent to EUR68.5 million. New
risk provisions were further reduced, without any relaxation
of strict criteria, from EUR6.2 million to EUR4.2 million.
Profit from trading activities improved 7.9 per cent to
EUR66.7 million.

Operating costs rose by 18.6 per cent to EUR238.6 million,
primarily due to the increase in the number of employees to
1,517 from 1,297 in the previous year; to higher profit-
related performance payments, and to start-up costs for the
internet broker pulsiv.com. An extraordinary gain of EUR10.6
million arose on first-time consolidation, under
International Accounting Standards, of special investment
funds.

Profit after tax increased 17.3 per cent to EUR91.6 million.
Earnings per share rose from EUR2.98 in 1999 to EUR3.62 in
2000. At the Annual General Meeting on 12 June 2001 the
payment of an increased dividend of EUR1.75 per share
(previous year EUR1.50 per share) will be recommended. In
addition, a bonus dividend of EUR0.50 per share is to be
paid, relating to the profit on first consolidation of
special investment funds.

Consolidated assets fell by 10 per cent to EUR10.3 billion.
This was primarily caused by reduced dealing assets and
liabilities, on account of the substantially lower market
values of OTC interest rate derivatives. The total capital
base at 31 December 2000 was 11.7 per cent of risk-weighted
assets. The core capital ratio was 8.0 per cent.

At 31 December 2000, the total outstanding derivatives
business stood at EUR85.1 billion (prior year EUR77.9
billion) with a market value of EUR1.3 billion (EUR1.8
billion). The market risk fell from EUR17.7 million in 1999
to EUR8.2 million in 2000.

All business units of the bank increased their contribution
to operating profits in 2000. Dr. Sieghardt Rometsch,
Chairman of the Managing Partners, reiterated the balanced
earnings structure of the bank. In 2000, institutional
business contributed 29 per cent of the bank's income,
private banking 27 per cent, corporate banking 25 per cent
and proprietary trading 19 per cent.

Private banking, dedicated to the care and management of the
assets of wealthier clients, improved its results nearly 18 per
cent to achieve its best ever performance. Key to this was high
stock market volatility, which called for active management of
client portfolios. Despite the weakening of equity markets,
investments achieved on average modest gains. This was achieved
by substantially under-weighting Neuer Markt and Nasdaq stocks.

Corporate banking also achieved a record result in 2000. Dr
Rometsch emphasized that the bank remained strategically
committed to the corporate sector. Revenues from lending had
risen, due to higher volumes and improved margins. More
important, however, was the fact that the lending business was
an essential component of the client relationship, and thus the
reference point for a multitude of sophisticated financial
services. The bank's focus in corporate banking continued to be
on offering highly intelligent and innovative services, knit
into consistently implemented relationship management.
Corporate Finance had increased substantially in importance to
corporate clients, especially to those experiencing strong
growth. The service offering in this field was being extended
to cover Pre-IPO and Post-IPO requirements. In international
business, too, transaction volumes had increased materially.

Institutional investor business once again grew rapidly. The
profits of this segment exceeded in 2000 for the first time
those of both other client segments. Equities in particular
showed a high rate of growth. Bonds business was about the same
level as in 1999, although Schuldschein activity was
particularly satisfactory. Profits from foreign exchange
business increased again. A new advisory team was established,
focusing on alternative investments in the private equity and
venture capital fields.

Volatile stock markets and the widening spreads in bond markets
led during the year to increased demand for professional
portfolio management services. HSBC Trinkaus Capital Management
GmbH concentrated its efforts primarily on extending corporate
bonds portfolio management, and the reinforcement of its
successful European sectoral investment concept.
INKA (Internationale Kapitalanlagegesellschaft mbH) increased
the number of its special investment funds by 8 to 180, and of
its public funds by 7 to 29. The volume of assets under
management grew modestly to EUR16.4 billion. At the end of
2000, HSBC Trinkaus Investment Managers SA, Luxemburg, managed
29 public funds and one special fund: the volume of assets
under management remained virtually unchanged at EUR1.1
billion.

New issues business continued the positive trend of the
previous year. With 832 transactions, compared to 518 in 1999,
activity reached a new record level. The bank lead-managed the
placement and flotation of 7 IPOs and was involved in a further
21 capital issues by domestic and foreign corporations. In
addition, the bank issued 790 option certificates (prior year
451). Net commissions from new issues business more than
doubled in 2000 compared to 1999.


The expansion of corporate finance business in recent years has
fully met expectations, despite the generally difficult market
conditions which prevailed during most of the period under
review. With the establishment additionally of its Pre-IPO
participation activity and Post-IPO services, the bank is now
in a position to offer to its clients the full range of
corporate finance products. Besides the strong expansion in IPO
business, the number of advisory mandates also rose markedly,
and the profitability of this business increased substantially
compared to the prior year. Corporate tax reform opens up
further improved business prospects, especially in the year
that lies immediately ahead.

On 2 March 2001 the bank sold a majority stake in the internet
broker pulsiv.com to the Savings Banks Group. Since its launch
in April 2000, pulsiv.com had attracted well over 17,000
customers. Against the background of a difficult stock market
environment, and of dramatically increased marketing costs
within the online brokerage industry, the Savings Banks Group
is seen as a strong partner to continue the successful
development of pulsiv.com. Following the de-consolidation of
its interest, HSBC Trinkaus & Burkhardt's 2001 results will be
relieved of the budgetted ongoing development costs.

Despite the unfavourable climate in capital markets, operating
profits for the first quarter of 2001 were only 7.9 per cent
lower than in the average quarter of the previous year. The
first quarter of 2000 was by far the best quarter in the bank's
history and, in direct comparison to that, operating profits in
the first quarter of 2001 were 37.3 per cent lower. Profit
after tax and minority interests, however, exceeded the
corresponding result for the first quarter of 2000 by 4 per
cent.

Net commission income was severely affected by the weakness of
capital markets and the cooling of the US economy, and fell by
18.6 per cent to EUR52.1 million. Net interest income rose by
5.3 per cent to EUR17.9 million. Dealing business generated a
profit of EUR18.2 million, compared to EUR27.1 million in the
first quarter 2000. Operating costs fell by 0.7 per cent to
EUR58.6 million. Profit after tax and minority interests, which
reached EUR26.2 million (prior year EUR25.2 million) included
an exceptional gain of EUR6.4 million from the sale of the
interest in pulsiv.com.

Despite difficult market conditions, the Managing Partners
anticipate that a further increase in operating profits is
achievable. However, because of the high level already reached
in 2000, this will lie in the single figure percentage range.
It is expected that the dividend can at least be maintained at
EUR1.75 per share.


Consolidated Figures according to International Accounting
Standards

(EUR million)            2000         1999       Change in
                                                  per cent

Balance Sheet

Due from customers       3,133        2,551           22.8
Dealing assets           3,777        4,794          (21.2)
Customer deposits        4,642        4,598            1.0
Dealing Liabilities      1,500        2,277          (34.1)
Shareholders Funds         653          611            6.9
Balance Sheet Total     10,345        11,495         (10.0)

Profit & Loss Account

Net Interest Income       72.7         64.2           13.2
Risk Provisions            4.2          6.2          (32.3)
Net Commission Income    230.5        181.6           26.9
Trading Income            66.7         61.8            7.9
Operating Expenses       238.6        201.2           18.6
Operating Profit         127.3        102.8           23.8
Net Profit                91.6         78.1           17.3