Trinkaus & Burkhardt Final Results

HSBC Hldgs PLC
13 April 2000


This price sensitive announcement is the English translation 
of a news release issued in German locally by our subsidiary 
company.


           HSBC TRINKAUS & BURKHARDT 1999 RESULTS -
             OPERATING PROFITS RISE 10.8 PER CENT

HSBC Trinkaus & Burkhardt, Dusseldorf, which is approximately
73.5 per cent indirectly-owned by HSBC Holdings plc, announced
a further increase in profits for the financial year ended 31
December 1999.

Operating profits increased 10.8 per cent to EUR 102.8 million
in 1999. As a result of the write-back of risk provisions of
EUR 39.9 million for the period under review, profit before
tax increased by 57.2 per cent to EUR 147.8m. Profit after tax
increased by 57.1 per cent to EUR 78.1 million. Earnings per
share, calculated according to International Accounting
Standards, rose from EUR 1.90 per share in 1998 to EUR 2.98
per share in 1999.

As announced on 10 February 2000, shareholders will share in
1999's increased profits. At the Annual General Meeting on 6
June 2000 a dividend of EUR 1.50 per share (previous year DM 2
= EUR 1.02) will be recommended. In addition, a bonus dividend
of EUR 0.50 per share will be paid, relating to the write-back
of risk provisions. Including a corporation tax credit, the
total dividend payment will amount to EUR 2.86 per share.

Acknowledging structural changes brought about by mergers to
create ever-larger financial services businesses, Dr Sieghardt
Rometsch, Chairman of the Managing Partners, outlined the
strategic challenges facing the bank. Increasingly, he said,
competitors such as discount brokers, asset managers and new
internet service providers are positioning themselves
alongside banks as financial service providers.

In response to these challenges, HSBC Trinkaus & Burkhardt has
defined its strategy as follows:

1.  The geographic centre of the business lies in Germany.
2.  The guiding business principle is to align the bank's
    financial services towards the needs of existing and new
    customers.
3.  Financial innovation remains key; only through using its
    extensive knowledge can the bank successfully implement
    'added value' banking for customers.
4.  The bank is concentrating on the following target groups:
    high net worth private clients, corporate clients and
    institutional investors.

According to Dr Rometsch, the successful implementation of
this strategy requires:

*  Significant investment in training to ensure that employees
are properly qualified and equipped to focus fully on their
goal of meeting customers' growing needs for 'added value
banking'.
*  Relationship banking based on mutual trust. Only through
relationships developed over many years is it possible to
deliver credibly to customers the increasing and ever more
complex financial services they need.
*  A highly effective IT infrastructure. This will only be
possible in future through alliances with systems providers in
order to meet particular system requirements. A bank the size
of HSBC Trinkaus & Burkhardt will need to purchase software.
*  Reliable and accurate management information. It must be
capable of reliably capturing the individual and team
performance of each employee, in order to provide a basis for
reward which is both fair and in line with the rest of the
market.
*  Close co-operation with the bank's majority shareholder,
HSBC, in international business, capital markets and corporate
finance. This co-operation continues to gain in importance.

Dr Rometsch described the decision made in 1999 to create an
internet broker as a new strategic dimension. It will enable
the bank to capture a new target customer group. The new
business, pulsiv AG, started business last week.

In 1999 net interest income earned by the bank increased by
3.4 per cent to EUR 64.2 million. At EUR 181.6 million net
commission income was 6.3 per cent above the prior year.
Proprietary trading improved strongly, up 58.9 per cent to EUR
61.8 million.

Operating expenses increased by 14.6 per cent to EUR 201.2
million, including substantial costs for Year 2000 and for the
internet broker pulsiv.com. Whilst the bank continued to apply
its stringent credit evaluation criteria, credit risk
provisions reduced from EUR 7.7 million in 1998 to EUR 6.2
million in 1999.

At 31 December 1999 the consolidated balance sheet totalled
EUR 11.5 billion (up 1.7 per cent). Shareholders' funds rose
from EUR 560.1 million as at 31 December 1998 to EUR 611.1
million. The total capital base was 10.8 per cent of risk
weighted assets. The core capital ratio was 7.6 per cent.

At 31 December 1999, the total outstanding derivatives
business stood at EUR 77.9 billion (prior year EUR 87.3
billion) with a market value of EUR 1.8 billion (EUR 2.2
billion). Of the total market value, EUR 1.3 billion related
to interest rate derivatives, EUR 367 million to currency
derivatives and EUR 126 million to equity and index related
derivatives. The market risk of all outstanding derivatives
transactions reduced from EUR 19.9 million in 1998 to EUR 17.7
million in 1999.

Dr Rometsch reported a balanced earnings structure last year
for the bank and its individual business areas. In 1999
private banking contributed 31 per cent, corporate banking 27
per cent, institutional business 26 per cent, and proprietary
trading 16 per cent of the bank's income.

After an exceptionally successful year in 1998, private
banking results were some 9 per cent lower in 1999. Assets
under management increased significantly, partly due to
increases in the value of existing portfolios and partly due
to success in winning new clients. On average, customers saw a
double digit return on their investments. Sophisticated
financial planning and advice, estate planning and executor
services again attracted great interest. In 1999, HSBC
Trinkaus Immobilien concentrated on Dutch property investment.
Since December 1999, a Swiss property fund has also been
available to clients.

The contribution made by corporate banking remained
consistently high. By offering high-value and innovative
services and a consistently implemented relationship
management concept, further progress was achieved in a
difficult market environment.

The product range was expanded to include securitised debt in
the form of placeable corporate notes and corporate bonds. The
importance of offering corporate finance business increased
significantly for corporate clients. International business
was strongly characterised in 1999 by the introduction of the
euro. The anticipated fall in income proved, however, to be
much smaller than expected.

Institutional investor business in 1999 again exceeded the
prior year. In bond trading, structured products were greeted
with great interest. The rise in income in equities trading
was due to the increase in new issues business and strong
demand for European equities; performance in this area was
also positively influenced by strategic co-operation with
HSBC's European sector research team.

The demand for professional portfolio management increased
again in 1999. HSBC Trinkaus Capital Management GmbH won a
number of new mandates. The volume of funds under existing
mandates also increased noticeably. INKA (Internationale
Kapitalanlagegesellschaft mbH) grew the volume of assets
managed by 31 per cent to almost EUR 16.2 billion. HSBC
Trinkaus Investment Managers S.A, Luxembourg, increased funds
under management by 22 per cent to EUR 1.12 billion.

Development of the new issues business continued in the last
financial year. With 518 lead-managed issues compared to 433
for the previous year, activity in the new issues business
reached a new record level. Of particular note were the EUR
1.5 billion 'global' bonds floated by Deutsche Ausgleichsbank,
and bond issues for Deutsche Nickel AG and Muhl Product &
Service AG.

The corporate finance department also saw substantial growth
in 1999. In the merger & acquisitions business, customers such
as Orange-Mannesmann and BMW contributed to a significant
volume of business. The department also further developed its
German market position in initial public offerings (IPOs). In
total HSBC Trinkaus & Burkhardt participated in 13 IPOs in
1999, including seven as lead manager. The New Year also began
promisingly. In the first three months, the bank has already
arranged IPOs for two companies as lead manager and as co-lead
manager for a further five companies. In addition, the bank is
advising the German government on the privatisation of
Deutsche Post AG.

The bank is involved in broadening its services for growth
companies. This applies to both pre-IPO phase and post-IPO
management. Consequently, HSBC Trinkaus & Burkhardt has joined
forces with management consultants Droege & Co and Crossworks
Gesellschaft fur vernetzte Kommunikation mbH to offer
entrepreneurs with promising business ideas in the new economy
the range of services required for a successful start in the
market. The joint venture, Crossvalley, is the first full
service incubator to be founded in Germany. The incubator is
able to offer the full range of services required to those
businesses which have been identified as having an innovative
business idea with the potential to achieve market success.

HSBC Trinkaus & Burkhardt can offer comprehensive advice on
all capital market related questions to growing businesses,
from foundation through to development of business strategy.
The bank will also assist in helping to organise suitable
finance, in taking the company public and in providing support
in the phase after listing.

Looking forward for 2000, Dr Rometsch said that the results
would be affected by the start up costs for the internet
broker pulsiv.com. Nonetheless the Managing Partners
anticipate a moderate increase in profits.

Consolidated Figures according to International Accounting
Standards

(EUR million)                     1999     1998  Change in 
                                                  per cent 
                                                           
1. Balance Sheet                                           
                                                           
Due from Customers               2,551    2,256       13.1 
Customer Deposits                4,794    5,333      (10.1)
Dealing Assets                   4,598    4,488        2.4 
Dealing Liabilities              2,277    2,509       (9.2)
Shareholders' Funds                611      560        9.1 
Balance Sheet Total             11,495   11,299        1.7 
                                                           
                                                           
2. Profit & Loss Account                                      
                                                           
Net Interest Income               64.2     62.1        3.4 
Risk Provisions                    6.2      7.7      (19.5)
Net Commission Income            181.6    170.9        6.3 
Trading Income                    61.8     38.9       58.9 
Operating Expenses               201.2    175.5       14.6 
Operating Profit                 102.8     92.8       10.8 
Net Profit                        78.1     49.7       57.1