SMC Annual Results 2001

HSBC Holdings PLC
10 April 2002


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

                              ANNUAL RESULTS 2001

Societe Marseillaise de Credit (SMC) reported positive results for the second
year in a row despite a less favourable economic and financial environment.

This was a result of measures first introduced in 1998, including an internal
reorganisation of the bank, the launch of new products and services and a focus
on the bank's core business of retail banking.

For the year ended 31 December 2001, the bank's net profit after tax was up 14.9
per cent to €37 million compared with €32 million in 2000.

Fee income was held down by a decline in commission on stock market orders and
equity investments, and fell 2.0 per cent to €61 million.

Net banking income, however, increased by 6.7 per cent to €173 million in 2001
from €162 million in 2000 despite the fall in financial and stock market
activity.

Operating costs fell by 4.2 per cent to €117 million in 2001 from €123 million
in 2000 due to a reduction in staff costs and other operating expenses.

With the increase in net banking income and the contraction in operating costs,
operating profit before provisions posted a substantial rise of 46.0 per cent to
€52 million, up from €35 million in 2000.

SMC's total assets increased by 3.7 per cent to €3.6 billion in 2001 compared
with €3.5 billion in 2000.

Overall funds were stable at €4.9 billion. SMC's 2001 year end demand deposits
increased by 2.8 per cent to €1.2 billion, while financial savings funds
declined by 5.0 per cent to €560 million owing to the fall in the value of
equity mutual funds. Outstanding life insurance policies increased by 12 per
cent to €900 million. New lending increased slightly.

During the year, the bank launched a major graduate recruitment programme and
internal bank training course, and invested in a substantial branch
modernisation programme.

Other highlights of 2001 included the launch of online broker, SMCNet Bourse,
and SMCNet online services. Staff also worked hard to enable customers to
complete the difficult task of switching over to the euro and converting their
management systems. Finally, the bank's entry into the HSBC Group in 2000 has
enabled it to offer customers international financing products and services.


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