HSBC USA INC-2nd Qtr&Interims

HSBC HOLDINGS PLC
27 July 1999

                        HSBC USA INC.
            FIRST HALF 1999 RESULTS - HIGHLIGHTS

Pre-tax income rose 2.4 per cent in the first half of 1999 to
US$393 million from US$384 million in the first half 1998 (a
6.3 per cent increase excluding one-off gains).

First half 1999 net income decreased by 5.8 per cent to US$235
million from US$249 million during the comparative period in
1998 (reflecting a higher tax rate).

Return on equity for the first half of 1999 declined to 21.64 per
cent from 24.01 per cent in the first half of 1998,
reflecting a higher tax rate and an enlarged capital base.

The cost:income ratio for the first half of 1999 was 48.4 per cent,
compared to 47.8 per cent in the comparative period in
1998.

HSBC USA INC. REPORTS SOLID FIRST HALF RESULTS
HSBC USA Inc. (formerly HSBC Americas, Inc.) reported pre-tax
income of US$393 million for the first half of 1999, up 2.4
per cent from US$384 million in the first half of 1998. First
half 1999 pre-tax income benefited from a gain of US$15
million from the sale of a student loan business in
California in the first quarter. In the first half of 1998,
HSBC USA Inc. recorded gains on the sale of credit card
portfolios of US$28 million. Excluding these one-off gains,
pre-tax income was up 6.3 per cent for the first half and 6.8
per cent for the second quarter of 1999 over the comparative
periods in 1998.

Net income for the first half of 1999 declined 5.8 per cent to
US$235 million from US$249 million compared to the first half
of 1998. The effective tax rate for the half year ended 30
June 1999 rose to 40.0 per cent, compared to 35.0 per cent in
the first half of last year. The effective tax rate rose
towards the statutory rate as tax loss carry forwards, which
had reduced taxes in the past, have been fully utilised.

Return on average common equity for the first half of 1999 declined
to 21.64 per cent from 24.01 per cent in the first half of
1998, reflecting a higher tax rate and an enlarged capital
base. The cost:income ratio was 48.4 per cent.

Total loans at 30 June 1999 were US$23.1 billion, up 10.0 per cent
from US$21.0 billion at 30 June 1998. The increase was due to
growth in the commercial loan book and the acquisition of the
US branches of The Hongkong and Shanghai Banking Corporation
Limited at the end of 1998. Total assets were US$34.3 billion
at 30 June 1999 and at 30 June 1998. Common equity as a per
cent of total assets increased to 6.5 per cent at 30 June
1999 as compared to 6.0 per cent last year.

On 28 June 1999, HSBC Americas, Inc. was renamed HSBC USA Inc., and
in March this year HSBC USA Inc.'s principal subsidiary,
Marine Midland Bank, changed its name to HSBC Bank USA. These
changes are part of a global branding initiative by parent
company HSBC Holdings plc.

Malcolm Burnett, chief executive officer of HSBC USA Inc., said:
'During the first half of this year we continued our trend of
steady earnings. A larger commercial loan book contributed to
strong growth in net interest income while solid growth in
fee income was driven by sales of wealth management products.

'On 10 May, agreement was reached between HSBC Holdings plc,
Republic New York Corporation and Safra Republic Holdings SA
for HSBC Holdings plc to acquire Republic New York
Corporation and Safra Republic Holdings SA. The proposed
transactions, which are expected to be completed during the
fourth quarter of 1999 pending regulatory and shareholder
approvals, will represent a major step forward for the HSBC
Group.

'The acquisition will effectively double HSBC's private banking
business and extend its US domestic, personal and commercial
banking businesses. It will also enhance our global markets
business in treasury and foreign exchange, and add world-
leading businesses in banknotes and bullion. The acquisition
will create the third largest branch network in New York
State serving more than two million customers.

'On 16 July 1999, the shares of HSBC Holdings plc began trading on
the New York Stock Exchange in the form of American
Depositary shares, utilising the ticker symbol 'HBC'. HSBC
Bank USA Inc. acts as depositary for HSBC Holdings plc.'

Malcolm Burnett concluded: 'This presence in the world's largest
equities market complements HSBC's existing dual primary
listings on the London and Hong Kong Stock Exchanges and will
be more convenient for investors in the US.'

HSBC Bank USA is a New York State banking institution with 373
branches in New York and two in Pennsylvania. HSBC USA Inc.
is an indirectly-held, wholly-owned subsidiary of HSBC
Holdings plc, which is headquartered in London. With over
5,000 offices in 79 countries and territories and assets of
US$483 billion at 31 December 1998, the HSBC Group is one of
the world's largest banking and financial services
organisations.

HSBC USA Inc.                                             Quarterly summary
____________________________________________________________________________

Figures in US$ millions              Quarter ended        Half year ended   
                                 30 June     30 June     30 June    30 June
                                    1999        1998        1999       1998

Income before taxes                189.5       194.4       393.3      383.9 
                                                                            
Income before taxes                                                         
  (excluding certain gains)^       189.5       177.4       378.3      355.8 
                                                                            
Net income                         113.5       126.2       234.9      249.4 
                                                                            
Profitability ratios (%)               %           %           %          % 
Return on average assets            1.33        1.53        1.40       1.57 
Return on average common equity    20.56       24.16       21.64      24.01 
Cost:income ratio                  49.02       47.64       48.35      47.81 
                                                                            
Staff numbers (full time                                   
  equivalents)                                             9,165      9.185
                                                                            
Average balances                    US$m        US$m        US$m       US$m 
Loans                             23,358      21,073      23,375     21,270 
Earning assets                    31,979      31,034      31,710     30,109 
Total assets                      34,140      33,030      33,944     32,059 
Deposits                          26,688      24,846      26,329     24,017 
Common equity                      2,214       2,096       2,189      2,094 
                                                                            
Net yields on a taxable                
  equivalent basis                     %           %           %          %
Net yield on earning assets         3.86        3.81        3.94       3.91 
Net yield on total assets           3.61        3.58        3.68       3.67 
                                                                            
Capital (at end of period)                                  US$m       US$m 
Common equity                                            2,242.3    2,045.8 
As a percentage of total assets                             6.54%      5.97%

                                                                            
^ 1998 excludes first quarter and second quarter gains on sale of credit
  card portfolios of US$11.1 million and US$17.0 million, respectively;
  1999 excludes first quarter gain on sale of a student loan business in
  California of U$15.0 million.

HSBC USA Inc.                             Consolidated statement of income
___________________________________________________________________________

Figures in US$ thousands                                 
                                         Quarter ended   Quarter ended
                                          30 June 1999    30 June 1998
                                          
Interest income                                                        
Loans                                          456,902         447,844 
Securities                                      53,858          56,612 
Trading assets                                  10,597          11,941 
Deposits with banks                             24,242          27,921 
Federal funds sold and securities purchased                            
  under resale agreements                       28,535          49,059 
Total interest income                          574,134         593,377 
                                                                       
Interest expense                                                       
Deposits                                                               
- In domestic offices                         (157,119)       (168,095)
- In foreign offices                           (51,811)        (50,833)
Short-term borrowings                          (31,114)        (56,905)
Long-term debt                                 (27,158)        (23,681)
Total interest expense                        (267,202)       (299,514)
                                                                       
Net interest income                            306,932         293,863 
                                                                       
Provision for credit losses                    (22,500)        (19,500)
Net interest income, after provision for        
  credit losses                                284,432         274,363
                                                                       
Other operating income                                                 
Trust income                                    13,450          12,069 
Service charges                                 30,516          28,648 
Mortgage servicing revenue                       8,775          12,813 
Other fees and commissions                      41,076          34,146 
Trading revenues                                 2,884           2,672 
Other income                                    12,193          24,361 
Total other operating income                   108,894         114,709 
                                                                       
Total income from operations                   393,326         389,072 
                                                                       
Other operating expenses                                               
Salaries and employee benefits                (104,909)       (101,000)
Net occupancy expense                          (21,512)        (21,557)
Other expenses                                 (77,426)        (72,078)
Total other operating expenses                (203,847)       (194,635)
                                                                       
Income before taxes                            189,479         194,437 
Applicable income tax expense                  (76,000)        (68,200)
                                                                       
Net income                                     113,479         126,237 

HSBC USA Inc.                             Consolidated statement of income
___________________________________________________________________________

Figures in US$ thousands                     Half year        Half year 
                                                 ended            ended
                                               30 June          30 June
                                                  1999             1998

Interest income                                                         
Loans                                          922,732          895,376 
Securities                                     112,701          115,561 
Trading assets                                  22,496           26,280 
Deposits with banks                             51,806           57,562 
Federal funds sold and securities purchased                             
  under resale agreements                       41,512           61,372 
Total interest income                        1,151,247        1,156,151 
                                                                        
Interest expense                                                        
Deposits                                                                
- In domestic offices                         (312,184)        (327,813)
- In foreign offices                           (97,679)         (88,035)
Short-term borrowings                          (69,751)        (107,721)
Long-term debt                                 (53,447)         (50,348)
Total interest expense                        (533,061)        (573,917)
                                                                        
Net interest income                            618,186          582,234 
                                                                        
Provision for credit losses                    (45,000)         (39,000)
Net interest income, after provision for      
  credit losses                                573,186          543,234
                                                                        
Other operating income                                                  
Trust income                                    26,109           23,157 
Service Charges                                 59,709           56,484 
Mortgage servicing revenue                      19,990           23,911 
Other fees and commissions                      81,038           70,751 
Trading revenues                                 5,476            4,160 
Other income                                    38,173           49,529 
Total other operating income                   230,495          227,992 

Total income from operations                   803,681          771,226 
                                                                        
Other operating expenses                                                
Salaries and employee benefits                (209,409)        (201,961)
Net occupancy expense                          (44,264)         (43,838)
Other expenses                                (156,687)        (141,567)
Total other operating expenses                (410,360)        (387,366)
                                                                        
Income before taxes                            393,321          383,860 
Applicable income tax expense                 (158,400)        (134,500)
                                                                        
Net income                                     234,921          249,360 


HSBC USA Inc.                                Consolidated balance sheet
_______________________________________________________________________

Figures in US$ thousands                    At 30 June      At 30 June 
                                                  1999            1998

Assets                                                                 
Cash and due from banks                      1,127,147       1,184,899 
Interest bearing deposits with banks         1,462,632       3,386,532 
Federal funds sold and securities                                      
  purchased under resale agreements          3,065,532       3,331,158 
Trading assets                                 834,032         764,990 
Securities available for sale                3,473,981       3,742,560 
                                                                       
Loans                                       23,124,309      20,955,312 
Less - allowance for credit losses            (371,601)       (406,202)
Loans, net                                  22,752,708      20,549,110 
                                                                       
Premises and equipment                         200,416         211,958 
Accrued interest receivable                    207,262         216,316 
Intangible assets                              484,044         474,174 
Other assets                                   675,871         416,137 
                                                                       
Total assets                                34,283,625      34,277,834 
                                                                      
Liabilities                                                            
Deposits in domestic offices                                           
- Non-interest bearing                       3,358,185       4,390,084 
- Interest bearing                          18,766,118      16,993,867 
Interest bearing deposits in 
  foreign offices                            4,776,525       4,571,950 
Total deposits                              26,900,828      25,955,901 
                                                                       
Short-term borrowings                        2,430,066       4,214,554 
Interest, taxes and other liabilities          863,760         692,711 
Long-term debt                               1,846,648       1,368,857 
Total liabilities                           32,041,302      32,232,023 
                                                                       
Shareholders' equity                                                   
Common stock                                         5               5 
Capital surplus                              1,807,938       1,805,333 
Retained earnings                              457,100         214,472 
Accumulated other comprehensive income         (22,720)         26,001 
Total shareholders' equity                   2,242,323       2,045,811 
                                                                       
Total liabilities and shareholders' equity  34,283,625      34,277,834