HSBC Subsidiary 1H02 Results

HSBC Holdings PLC
15 August 2002

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

                 HSBC TRINKAUS & BURKHARDT 2002 INTERIM RESULTS

HSBC Trinkaus & Burkhardt, which is approximately 73.5 per cent indirectly owned
by HSBC Holdings plc, reported interim results for the first six months of 2002
which confirm that the bank is following the best strategy, even under the
current very difficult economic conditions.

Although operating profits fell back by 40 per cent to EUR28.4 million during
the first half of the year, the bank was able to maintain income from client
activities - its core business - close to last year's levels, despite the
difficult market environment. Corporate banking was the major contributor to
these results with a 22.8 per cent increase in profits compared to last year.

The institutional investor business reported a 7 per cent fall compared to the
same period last year. Private banking was affected by the sharply-reduced
volume of stock exchange activity - results were 29.2 per cent down on last
year. Worst affected by the weak market conditions was the bank's proprietary
trading. Trading profits came to EUR7.9 million compared to EUR33.9 million in
the same period last year.

Net commission income rose slightly to EUR97.2 million in the first six months
of the year - this, despite the fact that some two thirds of HSBC Trinkaus &
Burkhardt's income depends, directly or indirectly, on securities business. The
corporate finance business performed successfully and, thanks to some attractive
advisory mandates in mergers and acquisitions, made an important contribution to
overall commission income.

Compared to the previous year, net interest income fell by 14.4 per cent to
EUR34.4 million. This fall is due partly to the impact on interest revenues of
lower short-term market interest rates, and partly to a lower level of income
from associated companies.

Despite the numerous company crises and record level of insolvencies in the
German economy, total provisions for losses on loans and advances increased only
marginally. Thanks to a risk-aware approach to all corporate lending activities
and applying the traditional prudent and strict valuation methods which
characterise the bank's credit policy, total provisions for losses on loans and
advances reached EUR0.8 million, compared to EUR0.3 million for the first six
months of 2001.

Profits from equity and equity/index-related derivatives trading of EUR5.9
million were in line with expectations. Bond and interest rate derivatives
trading profits of EUR3.6 million were a pleasing improvement following a EUR3.3
million loss in the first quarter of 2002, although foreign exchange dealing
disappointed with a loss of EUR1.6 million.

The cost:income ratio of ordinary business activities rose from 54.3 per cent in
the first six months of 2001 to 79.5 per cent in the six months to 30 June 2002.
HSBC Trinkaus & Burkhardt has therefore adopted a range of measures to reduce
operating costs. Falling income demands a corresponding reduction in capacity.
One visible result of these efforts is the 8.7 per cent reduction in general
administrative expenses to EUR111.9 million in the first half of 2002.

The bank reported pre-tax profits of EUR28.1 million for the six months to 30
June 2002. Net profits fell 78.6 per cent to EUR17.8 million, although this is
largely because the profits of the corresponding period last year included
exceptional income from the tax-efficient exchange of shares in ERGO
Versicherungsgruppe AG, as well as from the deconsolidation of S Broker AG
(formerly, pulsiv AG). Earnings per share for the first half-year stood at
EUR0.68, compared to EUR1.07 for the first six months of 2001 (excluding
exceptionals).

Compared to 31 December 2001, consolidated assets increased by 10.5 per cent to
EUR12.2 billion. The BIS capital ratio as at 30 June 2002 was 11.4 per cent, and
the core capital ratio 7.6 per cent.

Looking ahead, the managing partners note the continued fragility of the broader
economic picture and confirm that developments on the national and international
financial markets are at present difficult to forecast. Nonetheless, they do not
rule out the possibility of a modest economic recovery. Against this background,
and in view of the bank's clearly-defined strategy, committed and
highly-qualified staff, solid capital base and strengthened cost management,
they believe that the earnings situation will improve slightly in the second
half of the year.



                      This information is provided by RNS
            The company news service from the London Stock Exchange