HSBC USA Inc-Interim Results

HSBC Hldgs PLC
31 July 2000

                        HSBC USA INC.
              2000 INTERIM RESULTS - HIGHLIGHTS


*  Net income in the first half of 2000 increased by 39.3 per
   cent to US$327 million from US$235 million in the first
   half of 1999.

*  Cash earnings^ in the first half increased by 75.4 per
   cent to US$444 million from US$253 million for the same
   period last year.

*  The cost:income ratio, excluding goodwill amortisation,
   was 53.5 per cent compared with 46.1 per cent in the first
   half of 1999.

*  Tier 1 capital to risk-weighted assets increased to 13.3
   per cent from 8.8 per cent at the end of the first half of
   1999 and decreased from 13.4 per cent at year-end 1999.

*  Cash earnings, as a percentage of average common equity,
   was 9.5 per cent compared with 23.3 per cent during the
   first half of 1999, reflecting a substantial increase in
   common equity as a result of HSBC USA Inc.'s merger with
   Republic New York Corporation.

*  Off-balance-sheet funds under management were US$45.9
   billion.


^ Cash earnings are primarily net income after preferred
 dividends and after adding back goodwill amortisation.



HSBC USA Inc.
_____________________________________________________________

HSBC USA Inc. recorded net income of US$327 million for the
six months ended 30 June 2000, up 39.3 per cent from US$235
million in the first half of 1999. Cash earnings were US$227
million for the second quarter, compared to US$124 million in
the same period in 1999 and US$444 million for the six
months, up 75.4 per cent from US$253 million last year.

HSBC USA Inc. completed the acquisition of Republic New York
Corporation on 31 December 1999. The Republic acquisition was
the principal reason for the growth in earnings and increase
in the balance sheet compared with 30 June 1999.

Youssef Nasr, chief executive officer of HSBC USA Inc. said:
'Our strong first half results were in line with
expectations. Core earnings were ahead of both HSBC USA
Inc.'s and Republic New York Corporation's individual
earnings for the same period last year. We expect to complete
most integration activities by the year-end. Total
restructuring costs, including capital costs and attributed
goodwill, are anticipated to be less than originally thought.
The level of cost savings is on track and the rate of
realisation will accelerate later this year and again in 
early 2001 when IT systems and offices are consolidated.'

Revenues from domestic wealth management were strong at
US$100 million for the first half of 2000, up 18.0 per cent
compared with the combined results of the two organisations
for the same period last year. There was an increase in off-
balance-sheet assets under management of 7.5 per cent since
31 December 1999. Life insurance revenues surpassed 1999 full-
year levels. Total portfolio holdings for International
Private Banking (New York, Florida and California) increased
over 9.4 per cent compared with 31 December 1999. There was
some deterioration in the quality of more leveraged credits,
but reserves at 1.7 per cent of total loans and provision
levels were considered adequate.

Total loans at 30 June 2000 were US$38.1 billion, up 65.0 per
cent from US$23.1 billion at 30 June 1999 and compared with
US$37.9 billion at 31 December 1999. Total deposits were
US$54.5 billion at 30 June 2000, up 102.6 per cent from
US$26.9 billion at 30 June 1999 and US$56.4 billion at 31
December 1999. Total assets were US$84.8 billion compared
with US$34.3 billion at 30 June 1999 and US$90.2 billion at
31 December 1999. Certain overseas operations of the former
Republic New York Corporation were transferred to other
members of the HSBC Group during the first half of 2000. More
transfers are expected to occur during the second half of the
year.

Common equity increased to US$9.4 billion at 30 June 2000
compared with US$2.2 billion at 30 June 1999 and US$9.5
billion at 31 December 1999. As a percentage of total assets,
common equity increased to 11.1 per cent from 6.5 per cent at
30 June 1999 and 10.6 per cent at 31 December 1999. The ratio
of Tier 1 capital to risk-weighted assets was 13.3 per cent
compared with 8.8 per cent at 30 June 1999 and 13.4 per cent
at 31 December 1999, and the ratio of total capital to risk-
weighted assets was 14.9 per cent compared with 12.5 per cent
at 30 June 1999 and 15.5 per cent at 31 December 1999.
Capital ratios of HSBC USA Inc., including the flagship bank,
HSBC Bank USA, were high compared to peers.

The return on average common equity for the first half of
2000 was 6.7 per cent versus 21.6 per cent in the first half
of last year. The return on average common equity was
significantly affected by the amortisation of goodwill
through the income statement and the substantial increase in
common equity. The ratio of cash earnings to common equity
was 9.5 per cent compared with 23.3 per cent at 30 June 1999.

'HSBC is committed to delivering the highest quality of
customer service,' Youssef Nasr said. 'We owe much of our
success to our commitment to customer satisfaction. Recently,
several research organisations have rated our customer
service extremely highly. We are gratified that our attention
to customer service has been recognised, and we continue to
try to improve further.'

HSBC Bank USA introduced internet banking in the second
quarter to provide customers with easier access to their
money. Over 20,000 accounts were opened, and account openings
continue to grow rapidly.

During the second quarter, HSBC Bank USA announced its
intention to acquire the full-service stand-alone bank
business of The Chase Manhattan Bank in Panama. The
acquisition includes 11 full-service bank branches and is
anticipated to close during the third quarter of 2000. On
completion, HSBC's existing presence in Panama of four
branches operated by London-based HSBC Bank plc will transfer
to HSBC Bank USA. With a total of 15 branches, HSBC Bank USA
will be the largest commercial lender in Panama and the Colon
Free Zone.

New York-based HSBC USA Inc. is the 11th largest US bank
holding company by total assets and is the holding company
for HSBC Bank USA; Republic Bank California, N.A. and the
HSBC Group's interest in the Wells Fargo HSBC Trade Bank.
HSBC has more than 450 branches in New York, seven branches
in Florida, two in Pennsylvania and three in California. For
more information about HSBC Bank USA, visit
www.banking.us.hsbc.com.

HSBC USA Inc. is an indirectly-held, wholly-owned subsidiary
of HSBC Holdings plc (NYSE:HBC), which is headquartered in
London. With over 5,000 offices in 80 countries and
territories, the HSBC Group is one of the world's largest
banking and financial services organisations.



HSBC USA Inc.                                             Quarterly summary
___________________________________________________________________________

                               Quarter ended           Half year ended   
Figures in US$ millions    30 Jun 00   30 Jun 99    30 Jun 00   30 Jun 99 


Net income                    168         113          327         235

Cash earnings^                227         124          444         253

Performance ratios (%)
Cash earnings as a
  percentage of Average
  common equity               9.8%       22.5%         9.5%       23.3%
Cost:income
ratio(excluding
  goodwill amortisation)     53.0%       46.7%        53.5%       46.1%
Staff numbers (full time
  equivalents)                                      14,161       9,165

Average balances (US$ m)
Loans                      37,577       23,358      37,855      23,375
Earning assets             75,739       31,979      74,643      31,710
Total assets               86,111       34,140      85,111      33,944
Deposits                   54,445       26,688      54,064      26,329
Common equity               9,348        2,214       9,405       2,189

Net yields on total assets 
  (tax equivalent basis) (%)  2.6%         3.6%        2.6%        3.7%

Capital (at end of period)
Common equity (US$ m)                                9,411       2,242
As a percentage of total 
  assets (%)                                          11.1%        6.5%

Capital ratios (%)
Leverage ratio                                         8.8         6.9 
Tier 1 capital to risk-
  weighted assets                                     13.3         8.8 
Total capital to risk-
  weighted assets                                     14.9        12.5 


^  Cash earnings is essentially net income after preferred dividends plus
   goodwill amortisation.



HSBC USA Inc.                              Consolidated statement of income
___________________________________________________________________________

                                 Quarter ended     Quarter ended
Figures in US$ thousands          30 June 2000      30 June 1999

Interest income
Loans                                  728,791           456,902
Securities                             433,288            53,858
Trading assets                          23,795            10,597
Other short-term investments           168,275            52,777
Total interest income                1,354,149           574,134

Interest expense
Deposits                               569,285           208,930
Short-term borrowings                  124,350            31,114
Long-term debt                         112,136            27,158
Total interest expense                 805,771           267,202

Net interest income                    548,378           306,932
Provision for credit losses             28,007            22,500
Net interest income, after
  provision for credit losses          520,371           284,432

Other operating income
Trust income                            22,400            13,450
Service charges                         43,173            30,516
Mortgage banking revenue                 8,577             8,775
Other fees and commissions              74,247            41,076
Trading revenues                        29,516             2,884
Security gains                           4,024             4,855
Earning from equity investments:
- Share of earnings                     39,403             1,132
- Less: amortisation of share of
  affiliates goodwill                  (20,100)                -
                                        19,303             1,132
Other income                            10,611             6,206
Total other operating income           211,851           108,894

Total income from operations           732,222           393,326

Other operating expenses
Salaries and employee benefits         251,450           104,909
Occupancy expense, net                  44,567            21,512
Other expenses                         136,551            67,655
Operating expenses before
  goodwill amortisation                432,568           194,076
Goodwill amortisation                   43,731             9,771
Total operating expenses               476,299           203,847
Income before taxes                    255,923           189,479
Income tax expense                      87,800            76,000
Net income                             168,123           113,479

Preferred dividends                      6,984                 -

Net income available to common
  shareholders                         161,139           113,479



HSBC USA Inc.                              Consolidated statement of income
___________________________________________________________________________

                                Half year ended     Half year ended
Figures in US$ thousands          30 June 2000       30 June 1999

Interest income
Loans                                1,449,812           922,732
Securities                             854,255           112,701
Trading assets                          52,393            22,496
Other short-term investments           275,563            93,318
Total interest income                2,632,023         1,151,247

Interest expense
Deposits                             1,094,725           409,863
Short-term borrowings                  223,324            69,751
Long-term debt                         216,319            53,447
Total interest expense               1,534,368           533,061

Net interest income                  1,097,655           618,186
Provision for credit losses             56,000            45,000
Net interest income, after provision
  for credit losses                  1,041,655           573,186

Other operating income
Trust income                            42,544            26,109
Service charges                         86,681            59,709
Mortgage banking revenue                15,164            19,990
Other fees and commissions             153,690            81,038
Trading revenues                        81,743             5,476
Security gains                             745             7,306
Earning from equity investments:
- Share of earnings                     72,725             1,792
- Less: amortisation of share of
  affiliates goodwill                  (40,200)                -
                                        32,525             1,792
Other income                            21,407            29,075
Total other operating income           434,499           230,495

Total income from operations         1,476,154           803,681

Other operating expenses
Salaries and employee benefits         502,342           209,409
Occupancy expense, net                  86,667            44,264
Other expenses                         274,709           137,334
Operating expenses before goodwill
  amortisation                         863,718           391,007
Goodwill amortisation                   87,461            19,353
Total operating expenses               951,179           410,360
Income before taxes                    524,975           393,321
Income tax expense                     197,800           158,400
Net income                             327,175           234,921

Preferred dividends                     13,869                 -

Net income available to common         313,306           234,921
shareholders




HSBC USA Inc.                                   Consolidated balance sheet
__________________________________________________________________________

                                      At 30 Jun    At 31 Dec    At 30 Jun
Figures in US$ thousands                   2000         1999         1999

Assets
Cash and due from banks               2,073,075    1,977,756    1,127,147
Interest bearing deposits with banks  5,348,441    4,234,668    1,462,632
Federal funds sold and securities
  purchased Under resale agreements   2,438,516    2,318,361    3,065,532
Trading assets                        4,357,221    4,526,988      834,032
Securities available for sale        18,944,053   25,973,805    3,473,981
Securities held to maturity           4,633,200    4,811,695            -

Loans                                38,146,289   37,909,143   23,124,309
Less: allowance for credit losses       636,166      659,603      371,601
Loans, net                           37,510,123   37,249,540   22,752,708

Premises and equipment                  765,887      745,910      200,416
Accrued interest receivable             823,545      778,363      207,262
Equity investments ^                  2,567,107    2,540,927       27,052
Goodwill and other acquisition
  intangibles                         3,217,577    3,307,147      332,834
Other assets                          2,146,592    1,774,459      800,029

Total assets                         84,825,337   90,239,619   34,283,625

Liabilities
Deposits in domestic offices
- Non-interest bearing                6,749,383    6,003,813    3,358,185
- Interest bearing                   29,054,325   29,393,957   18,766,118
Deposits in foreign offices
- Non-interest bearing                  247,248      187,099           - 
- Interest bearing                   18,457,641   20,865,022    4,776,525
Total deposits                       54,508,597   56,449,891   26,900,828
Trading account liabilities           2,403,592    2,440,729       47,182
Short-term borrowings                 9,332,661    5,271,597    2,385,188
Interest, taxes and other
  liabilities                         2,772,884    3,059,993      861,456
Payable to shareholders of acquired
  Company                                     -    7,091,209            -
Subordinated long-term debt           3,424,539    3,427,649      822,472
Guaranteed mandatorily redeemable
  Securities                            710,998      710,259      400,000
Other long-term debt                  1,761,072    1,747,131      624,176

Total liabilities                    74,914,343   80,198,458   32,041,302

Shareholders' equity
Preferred stock                         500,000      500,000            -
Common shareholders' equity           9,410,994    9,541,161    2,242,323
Total shareholders' equity            9,910,994   10,041,161    2,242,323

Total liabilities and shareholders'
  equity                             84,825,337   90,239,619   34,283,625


^  Principally 49 per cent ownership interest in HSBC Republic Holdings
   (Luxembourg) formerly called Safra Republic Holdings, including 
   goodwill of US$1.6 billion.