Subsidiary's 3rd Quarter & 9 Months Results

HSBC Hldgs PLC
2 November 1999



                            HSBC BANK CANADA
                THIRD QUARTER 1999 RESULTS - HIGHLIGHTS

*  Net income was C$45 million for the quarter ended 30 September
   1999, an increase of 15.4 per cent over the comparative quarter
   ended 31 October 1998.

*  Return on equity was 19.4 per cent for the three months ended 30
   September 1999.

*  Total assets of C$25.6 billion at 30 September 1999.

*  Total capital ratio of 10.3 per cent; tier 1 capital ratio of 5.9
   per cent at 30 September 1999.

*  Funds under management of C$11.2 billion at 30 September 1999.

HSBC Bank Canada's net income was C$45 million for the three months
ended 30 September 1999, an increase of 15.4 per cent over the
comparative quarter ended 31 October 1998.

Net interest income was C$136 million for the quarter, a 4 per cent
increase over the comparative quarter in 1998 and the net interest
margin increased to 2.31 per cent from 2.24 per cent in the similar
period. Higher loan fees, interest recoveries on non-performing
loans and increases in net free funds, mainly from the acquisition
of Gordon Capital Corporation, contributed to the improvement.
Offsetting this were continued pressures on spreads resulting from
the competitive environment, particularly in personal banking.

As a result of continued strong credit quality, provisions for
credit losses were C$7 million, or 36 per cent lower than the
comparative quarter in 1998 and C$23 million, or 40 per cent lower
on a comparative year to date basis.

Other income was C$22 million, or 30 per cent higher and the ratio
of other income to total income was 15 per cent higher than the
comparative quarter in 1998. This strong growth was attributable to
the acquisition of Gordon Capital, which helped increase securities
related income. Revenue from products such as bankers' acceptances,
letters of credit, foreign exchange and guarantees continued to be
a significant part of other income. Corporate finance fees showed
improvements during the current quarter over the comparative
quarter in 1998 as financial markets were less volatile.

Non-interest expenses increased 12 per cent from C$139 million in
the comparative quarter to C$155 million in the current quarter.
Growth in the bank's core retail operations, acquisitions and
investments in new business and delivery channels have added to
total employee, premises and equipment costs. Continued focus on
centralisation of certain of the bank's operating functions during
1999 has resulted in other areas of non-interest expenses remaining
relatively stable against the comparative periods on a quarterly
and year to date basis.

The effective tax rate for the comparative periods in 1998 are
lower as the prior year income tax provisions included the benefits
from utilisation of losses carried forward relating to acquisitions
made in prior years.

Continued active balance sheet management, which included a further
securitisation of C$529 million in residential mortgages this
quarter, helped increase capital to finance growth following
acquisitions last year and meet the higher industry-wide standards
required by the Office of the Superintendent of Financial
Institutions. As a result, the total and tier 1 capital ratios
increased over the comparative quarter to 10.3 per cent and 5.9 per
cent, respectively which resulted in lower return on equity ratios
than the comparative periods in the prior year. However, the return
on equity for the third quarter increased compared with the second
quarter 1999.
                                                                  
Total assets of C$25.6 billion were 4 per cent, or C$0.8 billion
higher than the comparative quarter. This included an increase in
acceptances of C$230 million as the trend towards less expensive
and shorter term borrowing continued in the quarter, partly
resulting from expectations of changes in the interest rate
environment in Canada.

Youssef Nasr, President and Chief Executive Officer, said: 'Results
for the third quarter of 1999 were satisfactory. We have managed
tremendous changes to date through the focus, dedication and
flexibility of our staff. As part of our Managing for Value
philosophy we are continuing to improve the efficiency of our
operational processes and leveraging the capabilities and scale of
the HSBC Group to offer superior service and value to our clients.'

HSBC Bank Canada, an indirectly-held, wholly-owned subsidiary of
HSBC Holdings plc, has more than 140 offices. With over 5,000
offices in 79 countries and territories and assets of US$497
billion at 30 June 1999, the HSBC Group is one of the world's
largest banking and financial services organisations.

HSBC Bank Canada                                              Highlights

                                 Quarter ended         Nine months ended   
                            30SEP99     31OCT98^      30SEP99    31OCT98^
                                                                     
Earnings (C$ millions)                                                   
Net interest income             136         131           399        387 
Net income                       45          39           123        120 

Financial ratios (%)              %           %             %          % 
Return on average equity                                                 
 (annualised)                  19.4        20.0          18.7       21.5 
Return on average assets                                                 
 (annualised)                  0.67        0.61          0.62       0.64 
Net interest margin            2.31        2.24          2.29       2.24 
Cost:income                    67.1        68.1          68.6       67.4 
Provision for credit                                                     
  losses/average assets         0.1        0.2            0.2        0.3
Other income/total income      41.1        35.8          42.0       35.7 

                                                   At 30SEP99  At31OCT98 
Financial position (C$ millions)                                       
Total assets                                           25,563     24,722 
Shareholder's equity                                      940        793 

Capital ratios (%)                                          %          % 
Total capital                                            10.3        9.7 
Tier 1                                                    5.9        5.3 

Other                                                                   
Number of employees (full-time equivalent basis)        4,915      4,535 


^ As a result of the change in year-end from 31 October to 31
  December, effective from 1998, the comparative figures are those
  for the three or nine month period ended 31 October 1998.
  
HSBC Bank Canada             Condensed Consolidated Statement of Income
                          ,                                 (Unaudited)

Figures in C$millions      Quarter ended            Nine months ended   
(except per share      30SEP99       31OCT98        30SEP99     31OCT98 
amounts)                                                              
                                                                        
                                                                        
Net interest income        136           131            399         387 
Provision for credit                                                    
 losses                     (7)          (11)           (35)        (58)
                           129           120            364         329 
Other income                95            73            289         215 
                                                                        
Net interest and other                                                  
income                     224           193            653         544 
                                                                        
Non-interest expenses     (155)         (139)          (472)       (406)
                                                                         
Net income before                                                        
provision for
  income taxes              69            54            181         138 
Provision for income                                                    
  taxes                    (24)          (15)           (58)        (18)
Net income                  45            39            123         120 
                                                                        
Average number of                                                       
  shares outstanding      
  (in millions)            280           280            280         280
                                                                        
Net income per common
  share                   0.16          0.14           0.44        0.43 

HSBC Bank Canada      Condensed Consolidated Balance Sheet (Unaudited)

Figures in C$ millions             At 30SEP99    At 31OCT98 
                                                         
Cash resources                          2,632         1,635 
Securities                              2,941         3,701 
Loans                                  17,266        17,049 
Acceptances                             1,594         1,364 
Other assets                            1,130           973 
                                                      
Total assets                           25,563        24,722
              
                                                         
Demand                                    821           778 
Notice                                  4,009         3,752 
Fixed date                             15,826        15,953 
                                                       
Total deposits                         20,656        20,483
                                                        
Acceptances                             1,594         1,364 
Other liabilities                       1,759         1,461 
Subordinated debt                         614           621 
Capital and reserves                      940           793 
                                                         
                                        4,907         4,239 
                                                         
Total liabilities                      25,563        24,722 
                                  
HSBC Bank Canada        Condensed Consolidated Statement of Cash Flows
                                                           (unaudited)

Figures in C$ millions       Quarter ended           Nine months ended
                           30SEP99    31OCT98        30SEP99   31OCT98 
                                                                       
Cash flows from operating                                            
 activities:

Net income                      45         39            123       120 
Adjustments:                                                          
Provision for credit losses      7         11             35        58 
Depreciation and           
 amortisation                    8          6             24        18        
Other items, net               216        365             74       154 
                               276        421            256       350 
Cash flows from/(used in)                                             
 financing activities:
Deposits                       162       (453)           106      (119)
Dividends paid                   -          -              -       (36)
                               162       (453)           106      (155)
Cash flows from/(used in)                                             
 investing activities:
Businesses acquired              -          -            (75)     (125)
Securities                     370        (33)           563      (562)
Loans                          406        273            158       218 
Land, buildings and equipment  (11)       (16)           (27)      (31)
                               765        224            619      (500)
                                                                       
Net increase/(decrease) in                                            
 cash resources              1,203        192            981      (305)
  
Cash resources in                                                     
 businesses acquired at 
 date of aquisition              -          -             14        80 

Cash resources at beginning 
 of period                   1,429      1,443          1,637     1,860
Cash resources at end of 
 period                      2,632      1,635          2,632     1,635