HSBC Subsidiary Results

HSBC Hldgs PLC
9 March 2001


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
                   2000 RESULTS - HIGHLIGHTS

Societe Marseillaise de Credit (SMC) has reported positive
results for 2000 due to internal reorganisation and good
business conditions.

*   Overall funds intake rose 8.3 per cent to FF32.3 billion.
*   Demand deposits increased by 7.6 per cent to FF8.144
    billion.
*   Financial savings funds rose substantially by 24 per cent
    to FF3.885 billion as a result of the rapid development of
    the range of mutual funds. Outstanding life insurance
    policies continued to increase, exceeding the FF5 billion
    level (up 32 per cent to FF5.180 billion).
*   Significant growth in new loans for personal banking
    customers, a trend which started in 1999, continued and
    helped balance SMC's loan portfolio.
*   Net commission income rose 6.7 per cent to FF397 million.

Net banking income, boosted by capital gains on the sale of
subsidiaries, rose 10.6 per cent to FF1.089 billion compared to
FF984 million in 1999. Excluding exceptional items, the
increase equalled 6 per cent.

As a result of significant reorganisation, operating expenses
fell substantially by 12 per cent to FF848 million compared to
FF959 million in 1999.

Growth in net banking income and a sharp fall in operating
expenses enabled SMC to record significant gross operating
profits of FF241 million compared to FF25 million in 1999.

Doubtful loans fell significantly. As such, a positive pre-tax
profit of FF210 million was recorded compared to the FF187
million pre-tax loss in 1999. In addition, performance in 1999
was negatively affected by the cost of the employee redundancy
plan.

The balance sheet total was stable at FF22.800 billion. The
equity funds ratio equalled 8.68 per cent.

Among the principal events that will affect SMC in 2001 are the
creation of online services (stock market and banking
transactions), the changeover to the euro and the preparation
for the fiduciary euro.

Note to editors
Societe Marseillaise de Credit is a wholly-owned subsidiary of
CCF, which became part of the HSBC Group in July 2000. With
some 6,500 offices in 79 countries and territories and assets
totalling US$674 billion at 31 December 2000, HSBC is one of
the largest banking and financial services organisations in the
world.