Subsid's 3rd Qtr&9 Mths Rslts

HSBC Holdings PLC
8 November 2001

            HSBC TRINKAUS & BURKHARDT RESULTS TO 30 SEPTEMBER 2001

                        PROFITS INCREASE 12.4 PER CENT

HSBC Trinkaus & Burkhardt, Dusseldorf, which is approximately 73.5 per cent
indirectly owned by HSBC Holdings plc, increased its profits for the first
nine months of 2001 by 12.4 per cent to EUR123.1 million compared to the same
period of the previous year. This increase was largely attributable to
exceptional profits from the exchange of shares in ERGO Versicherungsgruppe AG
for shares of Munchener Ruckversicherungsgesellschaft AG, as well as from the
de-consolidation of pulsiv AG. Net profits after tax and minority interests
increased by 55.8 per cent to EUR91.9 million. Earnings per share rose by 55.8
per cent to EUR3.52. An annualised pre-tax return on equity of 28.0 per cent
was achieved, compared with 28.4 per cent in the equivalent period of 2000.

Owing to adverse market conditions, operating profits were considerably
reduced by 40.6 per cent to EUR62.1 million. The muted sentiment and depressed
turnover on stock markets had the greatest impact on net commissions, the most
important element of profits.

At EUR139.5 million, these were 20.5 per cent below the level of the
equivalent period in the previous year. The reduction in securities trading
commissions was 18 per cent. The contribution from new issues business was
also well down, to EUR5.9 million from EUR15.7 million in 2000.

Net interest income increased by 7.9 per cent to EUR59.0 million. New credit
risk provisions were further reduced, without any relaxation of strict
valuation criteria, from EUR1.1 million to EUR0.3 million, with the result
that net interest income after provisions rose by 9.5 per cent to EUR58.7
million. Dealing profits on the other hand, affected by the weakness of
markets worldwide, fell by 24.8 per cent to EUR39.5 million.

Administrative expenses, despite continuing investment in staff and systems,
increased by just 0.5 per cent to EUR178.3 million. The number of employees
rose compared with year-end 2000 by 3 per cent to 1,562.

All business areas of the bank were affected by the unfavourable market
conditions. Significant reductions in profitability were recorded in private
banking, institutional investors and own-account trading, whereas corporate
banking was able to maintain a relatively good performance.

At 30 September 2001, the consolidated balance sheet grew by 5.8 per cent
compared to its level at year-end 2000, to EUR10.95 billion. Shareholders'
funds increased by 5.1 per cent to EUR686.8 million. The total capital base at
30 September 2001, calculated according to BIS standards, represented 12.5 per
cent of risk-weighted assets, and the tier one capital ratio at the same date
was 8.0 per cent.

The nominal value of outstanding derivatives business remained at the end-2000
level of EUR85.6 billion. The market value of derivatives transactions rose
from EUR1.33 billion to EUR1.40 billion. Aggregate market risk, according to
BIS standards, rose from EUR8.2 million to EUR18.9 million.

Looking ahead, the Managing Partners anticipate that the prevailing
uncertainty on capital markets will continue to weigh upon results. No relief
from these pressures can be expected in the short term. On the basis of the
exceptional profits of the first half-year, however, it should still be
possible to maintain the dividend payment at the level of the previous year.