HSBC Holdings Subsid Results

HSBC Hldgs PLC
15 March 2001



               HSBC REPUBLIC BANK (SUISSE) SA
                  2000 RESULTS - HIGHLIGHTS

HSBC Republic Bank (Suisse) SA forms part of HSBC Republic,
the international private banking division of HSBC Holdings
plc. The year 2000 was a year of consolidation including the
purchase of HSBC Bank Middle East Geneva branch on 1 July
2000. The activities of the two banks were merged during the
third quarter of 2000.

HSBC Republic Bank (Suisse) SA reported the following
results for 2000.

*    Net income for the year ended 31 December 2000 was
     CHF125.3 million, compared with CHF102.2 million in
     1999, a 23 per cent increase.

*    Return on average equity was 12.8 per cent in 2000,
     compared with 11.9 per cent in 1999.

*    Total client assets, on and off-balance sheet, grew 40
     per cent to CHF53.5 billion at 31 December 2000
     compared with CHF38.1 billion at 31 December 1999.

*    Total shareholders' equity rose to CHF1.05 billion at
     31 December 2000, up from CHF911 million at 31 December
     1999.

*    The risk weighted capital adequacy ratio was 13.5 per
     cent at year end 2000 compared with 14.4 per cent at
     year end 1999, both well above the regulators'
     requirement of 8 per cent. The tier one capital ratio
     was 11.6 per cent at 31 December 2000, compared with
     13.5 per cent at 31 December 1999.


Financial Discussion                                             


BALANCE SHEET STRUCTURE AND CLIENT ASSETS AT 31 DECEMBER
2000

At 31 December 2000, total assets were CHF21.2 billion, an
increase of CHF4.0 billion (up 23 per cent) on 1999. The
growth was reflected mainly in a 38 per cent increase in
financial fixed assets and a 28 per cent increase in amounts
due from banks.

On balance sheet client deposits rose from CHF13.1 billion
at 31 December 1999 to CHF16.9 billion at 31 December 2000
(up 29 per cent). At 31 December 2000, off-balance sheet
client portfolio assets stood at CHF36.6 billion compared
with CHF25.0 billion at 31 December 1999 (up 46 per cent).

STATEMENT OF INCOME FOR THE YEAR ENDED 31 DECEMBER 2000

Net interest income increased by 18 per cent to CHF150.9
million in 2000, up from CHF128.3 million in 1999. The
increase reflected growth in interest earning assets.

Commission income was CHF224.2 million at 31 December 2000
compared with CHF174.1 million for the year ended 31
December 1999. This 29 per cent increase was due primarily
to an increase in client-related trading transactions, in
addition to growth in assets under management.

Trading income was CHF34.8 million at 31 December 2000,
compared with CHF19.3 million at 31 December 1999. This 80
per cent growth reflected both increased client transactions
and favorable proprietary trading results.

The total of other income/loss showed a gain of CHF10.5
million at 31 December 2000, compared with a gain of CHF22.3
million at 31 December 1999. The difference was due to
additional gains on sales of securities realised in 1999.

For the year ended 31 December 2000, operating expenses were
CHF228.3 million compared with CHF178.2 million in 1999.
This increase was in line with the rapid development of the
private banking infrastructure, the centralised Treasury and
IT functions, and subsequent additional staff recruitment.

The cost:income ratio for the year ended 31 December 2000
was 60 per cent compared with 57 per cent in 1999,
reflecting the infrastructure growth mentioned above.

Of the bank's CHF29.2 million in extraordinary income in the
year 2000, CHF24.2 million came from the liquidation of the
bank's Gibraltar subsidiary on 31 March 2000. HSBC Republic
relocated all of the existing business in Gibraltar to the
Channel Islands where HSBC has a historically strong
presence. The extraordinary income in 1999 was CHF11.3
million.

The Lugano and Zurich branches increased revenue over the
previous year by 31 per cent and 18 per cent, respectively.

Within the framework of the decision to centre HSBC's
international private banking activities in Geneva,
Switzerland, three major steps were taken:

*    A new Swiss holding company was created in Geneva,
     which consolidated the private banking activities in
     Geneva, Guernsey, Lugano, Zurich, Luxembourg and
     Monaco, under the ownership of HSBC Private Banking
     Holdings (Suisse) SA. This new structure will continue
     to integrate worldwide private banking operations
     during 2001.

*    The European treasury activities of HSBC Republic were
     headquartered in Geneva, with 42 dealers based in
     Geneva and over 100 more in 12 offices throughout the
     world, making it one of the world's largest dedicated
     private banking treasury operations.

*    HSBC Republic's Information Technology group has
     substantially increased its staff and infrastructure,
     and is now providing a computer production support
     facility, which offers processing support on a 24 hour,
     seven day a week basis to the worldwide private banking
     network.

STRATEGIC INITIATIVES

1.   Wealth Management

During 2000, Geneva-based business practices were created in
co-ordination with other HSBC Republic offices around the
world, to respond to the specific corporate and private
banking requirements of clients around the world. New
initiatives included Technology, Media and Jewelry
Practices.

2.   Family Office and Estate Planning

A Family Office service, in co-ordination with our office in
London, and the expanded Trust businesses worked closely to
provide a broad range of wealth protection services,
including estate planning, company and trust administration,
to HSBC Republic Bank (Suisse) SA's international clientele.

3.   Asset Management

Discretionary Asset Management

New alternative investment strategies were added in 2000 to
the traditional portfolio offerings, recognising both our
clients growing interest in this asset class as well as HSBC
Republic's long-standing experience in this area.

Investment Advisory Group

The European Investment Advisory Group, co-ordinated by HSBC
Republic Bank (Suisse) SA, was substantially expanded in
2000 to include centres of expertise in Switzerland, Monaco
and Dubai, in addition to the provision of Fund Advisory
services.

In liaison with HSBC Republic's Investment Advisory Groups
in New York and Hong Kong, this unit provides investment
advice and tailored solutions across all asset classes
including global stocks, bonds, funds, options, alternative
investments and derivative products to the private banking
network.

4.   Intranet and Internet - Information systems

A combined Internet and Intranet strategy was developed to
harness the investment information available both within
HSBC Republic Bank (Suisse) SA and from other HSBC Republic
offices. The implementation of this strategy will allow the
delivery of globally sourced information to clients through
our website - www.hsbcrepublic.com - in a timely and
consistent manner.


Mr. Sem Almaleh, President and Chief Executive of HSBC
Republic Bank (Suisse) SA, said: 'We completed the year 2000
with strong reserves, a new structure and a consolidated
private banking network. This made HSBC Republic Bank
(Suisse) SA a major private banking force within the Swiss
marketplace both in terms of balance sheet size and staff,
which increased to 732 by the end of 2000.'

Mr. Almaleh continued: 'Through the new Swiss holding
company, we also centralised two important private banking
units, Treasury and Information Technology. From these Swiss
platforms we are able to deliver a broad range of global
services and products.

'The Board of Directors and the Executive Committee of the
bank express their appreciation to all staff in Geneva,
Zurich, Lugano and Guernsey for their contribution in
achieving these annual results.'


Further Information                                              


1.  HSBC Republic Bank (Suisse) SA
HSBC Republic Bank (Suisse) SA is part of HSBC Republic, the
international private banking division of the HSBC Group.
Headquartered in Geneva, HSBC Republic provides private
banking and trustee services for high net worth individuals
and their families through 33 locations in the Americas,
Asia, Europe and the Middle East, employing some 2,900
professionals worldwide. At 31 December 2000 HSBC Republic
had client assets under management in excess of US$135
billion.

2.  HSBC Holdings plc
HSBC Holdings plc is headquartered in London and quoted on
the London, Hong Kong, New York and Paris stock exchanges.
The HSBC Group has some 6,500 offices in 79 countries and
territories, across Europe, Asia-Pacific, the Americas, the
Middle East and Africa and, with total assets of US$674
billion at 31 December 2000, is one of the world's largest
banking and financial services organisations.