HSBC Malta Results 2002

HSBC Holdings PLC
14 February 2003

The following is the text of an advertisement which is to be published in the
press in Malta on 15 February by HSBC Bank Malta p.l.c., a 70.03 per cent
indirect subsidiary of HSBC Holdings plc.


HSBC Bank Malta p.l.c. Preliminary Profit Statement for the year ended 31
December 2002 (Published in terms of Section 6.05.06 (iii) of the Bye Laws of
the Malta Stock Exchange)

                                                                              Group                         Bank
                                                                        2002           2001           2002         2001
                                                                       Lm000          Lm000          Lm000        Lm000

Interest receivable and similar income                                76,105         82,588         71,807       76,571

Interest payable                                                    (42,778)       (51,721)       (44,612)     (52,681)

Net interest income                                                   33,327         30,867         27,195       23,890

Other net operating income                                            18,282         20,424         14,004       17,227

Total operating income                                                51,609         51,291         41,199       41,117

Operating expenses                                                  (28,588)       (29,385)       (27,265)     (27,713)

Net amortisation of goodwill                                           (291)          (287)          (205)        (205)

Operating profit before impairment losses and
 provisions                                                          22, 730         21,619         13,729       13,199

Net impairment losses                                                (1,515)        (5,842)        (1,960)      (5,670)

Provisions for contingent liabilities and other charges                 (89)           (15)           (89)         (15)

Profit on ordinary activities before tax                              21,126         15,762         11,680        7,514

Tax on profit on ordinary activities                                 (5,762)        (2,520)        (3,944)      (2,582)

Profit for the financial year attributable to shareholders            15,364         13,242          7,736        4,932


Earnings per share                                                     42.1c          36.3c          21.2c        13.5c


Dividends, net of income tax                                           5,027          3,083          5,027        3,083




Exchange rates ruling on 31 December 2002 against the
 Maltese Lira were as follows:                                             GBP1.5555  EUR2.3908      USD2.5090




                                                                             Group                       Bank

Balance sheet extracts as at                                        31/12/02      31/12/01      31/12/02      31/12/01
(Figures in Lm millions)

Total assets                                                           1,570         1,456         1,535         1,409

Loans and advances to customers                                          891           878           763           733

Amounts owed to customers                                              1,303         1,223         1,299         1,069

Shareholders' funds                                                      117           104           117           104


Review of Group Performance

The published figures have been extracted from HSBC Bank Malta's group audited
accounts for year ended 31 December 2002 as approved by the Board of Directors
on 14 February 2003.

In 2002, HSBC Bank Malta and its subsidiaries generated a profit on ordinary
activities before tax of Lm21.1 million which represents an increase of Lm5.4
million, or 34.0 per cent when compared to the profit for the year ended 31
December 2001.

Profit attributable to shareholders was Lm15.4 million, an increase of Lm2.1
million (16.0 per cent) over the previous year.

Net interest income of Lm33.3 million was Lm2.5 million or 8.0 per cent higher,
when compared to 2001. Other net operating income decreased by Lm2.1 million or
10.5 per cent and operating expenses decreased by Lm0.8 million or 2.7 per cent,
on 2001 levels.

The group's cost to income ratio improved to 55.4 per cent from 57.3 per cent in
2001.

Net impairment losses during 2002 were Lm1.5 million, a decrease of Lm4.3
million over the previous year.

The directors have proposed a final gross dividend of 13.2 cents per ordinary
share that, together with the interim gross dividend of 8.0 cents, results in a
total distribution of 21.2 cents. This represents an increase of 8.2 cents per
share (63.1 per cent) over the previous year's dividend distribution. The
dividend is covered 3.1 times by attributable profit (2001: 4.3 times).

The dividend, subject to approval at the next Annual General Meeting, will be
payable to shareholders who are on the Register of Members of the company on 19
February 2003.


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