Interim Results - Part 1

HSBC Hldgs PLC
31 July 2000

Part 1


                     HSBC HOLDINGS PLC
              2000 INTERIM RESULTS - HIGHLIGHTS

*  Operating income up 15 per cent to US$12,018 million
   (US$10,410 million in the first half of 1999).

*  Operating profit before provisions up 9 per cent to
   US$5,442 million (US$4,995 million in the first half of
   1999); excluding goodwill amortisation (cash basis) up 12
   per cent to US$5,614 million.

*  Group pre-tax profit up 28 per cent to US$5,206 million
   (US$4,068 million in the first half of 1999); cash basis
   up 32 per cent to US$5,378 million.

*  Attributable profit up 31 per cent to US$3,525 million
   (US$2,694 million in the first half of 1999); cash basis
   up 37 per cent to US$3,697 million.

*  Return on average shareholders' funds of 20.2 per cent.

*  Assets up 2 per cent to US$580 billion (US$569 billion at
   31 December 1999).

*  Basic earnings per share up 27 per cent to US$0.42.

*  Cash earnings per share up 33 per cent to US$0.44.

*  First interim dividend of US$0.15 per share; an increase
   of 13 per cent over the 1999 first interim dividend.

*  Total capital ratio of 14.1 per cent; tier 1 capital ratio
   of 9.6 per cent.


HSBC HOLDINGS REPORTS PRE-TAX PROFIT OF US$5,206 MILLION


HSBC Holdings plc made a profit before tax of US$5,206
million in the first six months of 2000, an increase of
US$1,138 million, or 28 per cent, over the same period in
1999. Profit attributable to shareholders was US$3,525
million, an increase of 31 per cent.

The Directors have declared a first interim dividend for 2000
of US$0.15 per ordinary share (1999 first interim dividend of
US$0.133 per ordinary share), an increase of 13 per cent. The
dividend will be payable on 5 October 2000.

Net interest income of US$6,684 million was US$771 million,
or 13 per cent, higher than the same period in 1999. Other
operating income rose by US$837 million, or 19 per cent, to
US$5,334 million.

The Group's cost:income ratio (excluding the impact of the
amortisation of goodwill) increased to 53.3 per cent from
51.9 per cent in the same period in 1999.

The charge for bad and doubtful debts was US$368 million,
which was US$714 million lower than in the same period in
1999 and US$623 million lower than the second half of 1999;
this was after releasing 40 per cent (US$116 million) of the
special general provision for Asian risk established in 1997.

Gains on disposal of investments of US$162 million were US$7
million higher than in the same period of 1999.

The total capital ratio and tier 1 capital ratio for the
Group remained strong at 14.1 per cent and 9.6 per cent,
respectively, at 30 June 2000. Had the acquisition of Credit
Commercial de France been completed on 30 June, it is
estimated that on a proforma basis the tier 1 ratio would
have been 9.1 per cent at that date.

The Group's total assets at 30 June 2000 were US$580 billion,
an increase of US$11 billion, or 2 per cent, since 31
December 1999.


Geographical distribution of results

                                        Half-year to
Figures in US$m         30 Jun 2000      30 Jun 1999     31 Dec 1999

Profit before tax
                                  %                %               %
Europe                  1,962  37.6     1,719   42.3    1,603   40.9
Hong Kong               1,903  36.6     1,391   34.2    1,663   42.5
Rest of Asia-Pacific      734  14.1       180    4.4      149    3.8
North America             414   8.0       530   13.0      429   11.0
Latin America             193   3.7       248    6.1       70    1.8
Group profit before
  tax                   5,206 100.0     4,068  100.0    3,914  100.0 

Tax on profit on
  ordinary activities  (1,263)         (1,103)           (935)

Profit on ordinary
  activities after
  tax                   3,943           2,965           2,979

Minority interests       (418)           (271)           (265)

Profit attributable     3,525           2,694           2,714


Comment by Sir John Bond, Group Chairman

'HSBC's results for the first half of 2000 were encouraging.
Our performance has enabled us to declare a 13 per cent
increase in the first interim dividend and make some major
investments in the future of our business, in line with our
strategic plan.

'The increase in total revenues of 15 per cent reflected both
organic growth and the contribution from recent acquisitions.
In addition, with improved trading conditions in much of Asia
and the major OECD economies remaining strong, the level of
provisions for new bad and doubtful debts returned to
historical levels which helped achieve the 31 per cent
increase in attributable profit. The geographical
distribution of our earnings remained broadly stable with
increased earnings in Asia balancing the cash contribution
from the acquisitions of Republic New York Corporation and
Safra Republic Holdings completed at the end of 1999. We
estimate that the contribution of these businesses, before
funding costs and goodwill amortisation, was about US$300
million.

'In the UK we saw strong competition from traditional
providers of financial services and a fierce challenge from
new entrants. In this environment success depends on
achieving high levels of customer trust and satisfaction.
HSBC has taken an industry lead in becoming customer driven.
HSBC Bank plc has a growing reputation for fairness and
openness in its provision of wealth management and other
services. In the first half, life, pensions and investments
income grew by 9 per cent.

'In July, having achieved its objectives as a founding
partner in British Interactive Broadcasting, HSBC Bank has
agreed to sell its 20 per cent shareholding to BSkyB for a
consideration which, at current share prices, is
approximately three times the capital it has contributed of
US$121 million. The sale remains subject to regulatory
approvals.

'In Hong Kong major initiatives to expand fee services in the
light of limited credit demand were successful.  Revenues
from securities distribution, credit cards and mutual fund
business all rose strongly. HSBC invested heavily in
preparing for the introduction of the Mandatory Provident
Fund, a compulsory retirement plan covering company employees
and the self-employed.

'Our results in the rest of Asia improved as economies
rebounded from the regional downturn. New provisions for bad
and doubtful debts declined and we were able to recover
certain provisions made previously. Given the improving
conditions we considered it appropriate to release 40 per
cent of the US$290 million special general provision made in
1997. Expense discipline remained firm and the marked rise in
staff costs and marketing expenditure were encouraging
reflections of increased business opportunities. In May we
announced an agreement in principle to acquire 75 per cent of
Bangkok Metropolitan Bank.

'In the United States we have made good progress in
integrating the former Republic New York business. We are on
target to achieve the annual cost savings of US$300 million
after tax that we projected when we announced the
acquisition.

'In Latin America we have started to build our loan business
in Brazil on the back of historically low interest rates. Our
insurance businesses in both Brazil and Argentina produced
strong results.

'Within investment banking our private banking operations
performed well. The number of clients we serve and the funds
they entrust to us increased, growing to US$103 billion.
Together with institutional and retail, HSBC now has US$239
billion funds under management. With equity volumes very
strong in both the institutional and retail markets our
securities business produced a record performance in
generating commission income of US$291 million. Good teamwork
within HSBC contributed to customers of our commercial banks
making greater use of the services provided by our investment
banks. Corporate finance revenues increased by 28 per cent to
US$183 million.

'We took two major steps during the first half of 2000 to
expand both our geographic reach and our product range. The
acquisition of Credit Commercial de France, which became
effective on 28 July, provides us with a platform within the
euro-zone and with the opportunity to build on the fine
reputation which CCF enjoys for serving its major corporate
and high net worth customer base in France. The high take up
of the share exchange element of our offer for CCF has
maintained our Tier 1 capital ratio above our target and thus
added flexibility to our capital management.

'On 18 April we announced the formation of a 50:50
partnership with Merrill Lynch to create the first global on-
line banking and investment services company for affluent
customers outside the US. We are firmly on track to launch
this service in the final quarter of this year.  Our joint
venture with Merrill Lynch is a major step forward in our
strategy to enable us to succeed in the e-age. We described
this in some detail when we announced our 1999 results and we
are making good progress in implementing our plans.

'The progress we have made during the last two years and
planning for the changes made possible by new technology have
reinforced our view that national economies are increasingly
inter-dependent. Geographical boundaries are becoming less
relevant. We believe that, going forward, HSBC's
internationalism - defined by its systems, people, branding
and character - will give us a major competitive advantage.

'We view the remainder of 2000 with optimism although
unexpected shocks to the financial system can never be ruled
out.  The United States, the principal motor of the world
economy, has enjoyed an unprecedented period of growth. This
may not continue indefinitely. However, the economic outlook
in many of our markets remains favourable. After the exciting
developments in the first half of the year we are
concentrating on integration and execution. HSBC is in very
good shape. We have a broad spread of businesses, an
excellent customer base and a first class product range. We
have an increasingly well known and respected brand. We have
resources, both financial and human, which enable us to
pursue growth. HSBC has built up real momentum and I am
confident in our ability to deliver value to our customers
and shareholders.'



Contents
___________________________________________________________________________

The financial information in this news release is based on
the unaudited consolidated accounts of HSBC Holdings plc and
its subsidiaries for the six months ended 30 June 2000.

   Highlights of Results and Group Chairman's Comment
   Contents
   Financial Overview
   Consolidated Profit and Loss Account
   Consolidated Balance Sheet
   Consolidated Cash Flow Statement
   Other Primary Financial Statements
   Financial Review
        Net interest income
        Net interest margin of the principal banking subsidiaries
        Other operating income
        Operating expenses
        Bad and doubtful debts
        Customer loans and advances and provisions
        Country risk and cross-border exposure
        Asset disposition
        Capital resources
        Risk-weighted assets by principal subsidiary
   Review by Geographical Segment
        HSBC European Operations
        HSBC Hong Kong Operations
        HSBC Rest of Asia-Pacific Operations
        HSBC North American Operations
        HSBC Latin American Operations
        HSBC Investment Banking
   Additional Information
        Accounting policies
        Dividend
        Earnings and dividend per share
        Economic profit
        Subsequent events
        Provisions against advances
        Gains on disposal of investments
        Taxation
        Liabilities
        Reconciliation of operating profit to net cash
          flow from operating activities
        Financial instruments, contingent liabilities
          and commitments
        Off-balance-sheet risk-weighted and
          replacement cost amounts
        Market risk
        Segmental analysis
        Attributable profit by principal subsidiary and
          line of business
        Differences between UK GAAP and US GAAP
        Other information


Within this document the Hong Kong Special Administrative
Region of the People's Republic of China has been referred to
as 'Hong Kong'.


Financial Overview

   Half-year to                                           Half-year to
 30 Jun     31 Dec                                           30 Jun
   1999       1999                                            2000
   US$m       US$m                                  US$m       £m       HK$m

                     For the half-year
  4,068      3,914   Profit before tax             5,206    3,317     40,535
  2,694      2,714   Profit attributable           3,525    2,245     27,446
  1,118      1,754   Dividends                     1,280      815      9,966

                     At period-end
 31,642     33,408   Shareholders' funds          35,319   23,311    275,311
 44,990     44,270   Capital resources            47,935   31,637    373,653
                     Customer accounts and
351,559    398,075     deposits by banks         426,122  281,240  3,321,620
496,520    569,139   Total assets                580,280  382,985  4,523,283
294,016    336,126   Risk-weighted assets        339,444  224,033  2,645,966

    US$^^^     US$   Per share                       US$        £        HK$

   0.33       0.32   Basic earnings                 0.42     0.27       3.27
   0.33       0.33   Cash earnings^^                0.44     0.28       3.43
   0.33       0.32   Diluted earnings               0.41     0.26       3.19
  0.133      0.207   Dividend                       0.15     0.10^      1.17^
   3.76       3.95   Net asset value                4.14     2.73      32.27

                     Share information

  8,407m     8,458m  US$0.50 ordinary shares
                       in issue                    8,532m
  US$99bn   US$118bn Market capitalisation         US$98bn
                     Closing market price per
  £7.49      £8.63     share                       £7.56

      %          %   Ratios (annualised)               %

                     Return on average
  18.6        16.4     shareholders' funds          20.2
                     Post-tax return on average
  1.22        1.18     assets                       1.37
                     Post-tax return on average
  2.02        2.00     risk-weighted assets         2.33
                     Capital ratios
  15.3        13.2   - total capital                14.1
  11.4         8.5   - tier 1 capital                9.6
                     Cost:income ratio
                       (excluding goodwill
  51.9        55.8     amortisation)                53.3

^    The first interim dividend is translated at the closing
     rate on 30 June 2000 (see page 59).
^^   Cash earnings per share comprise basic earnings per share
     after adding back the impact of goodwill amortisation.
^^^  Restated to reflect the share capital reorganisation
     implemented on 2 July 1999.


Consolidated Profit and Loss Account

      Half-year to                                         Half-year to
   30 Jun      31 Dec                                         30 Jun
     1999        1999                                          2000
     US$m        US$m                                 US$m      £m     HK$m

   14,460      14,744   Interest receivable         17,431  11,104  135,718
   (8,547)     (8,667)  Interest payable           (10,747) (6,846) (83,676)

    5,913       6,077   Net interest income          6,684   4,258   52,042

    4,497       4,515   Other operating income       5,334   3,398   41,531

   10,410      10,592   Operating income            12,018   7,656   93,573

   (5,415)     (5,934)  Operating expenses          (6,576) (4,189) (51,201)

                        Operating profit before
    4,995       4,658     provisions                 5,442   3,467   42,372

                        Provisions for bad and
   (1,082)       (991)    doubtful debts              (368)   (234)  (2,865)
                        Provisions for contingent
      (52)        (91)    liabilities and commitments  (40)    (25)    (311)
                        Amounts written off fixed
      (10)        (18)    asset investments            (14)     (9)    (109)

    3,851       3,558   Operating profit             5,020   3,199   39,087
                        Income from associated
       60          63     undertakings                  25      16      195
                        Gains/(losses) on disposal
                          of:
      155         295   - investments                  162     103    1,261
        2          (2)  - tangible fixed assets         (1)     (1)      (8)

                        Profit on ordinary
    4,068       3,914     activities before tax      5,206   3,317   40,535

                        Tax on profit on ordinary
   (1,103)       (935)    activities                (1,263)   (805)  (9,834)

                        Profit on ordinary
    2,965       2,979     activities after tax       3,943   2,512   30,701

                        Minority interests:
     (234)       (226)  - equity                      (290)   (185)  (2,258)
      (37)        (39)  - non-equity                  (128)    (82)    (997)

                        Profit attributable to
    2,694       2,714     shareholders               3,525   2,245   27,446

   (1,118)     (1,754)  Dividends                   (1,280)   (815)  (9,966)

                        Retained profit for the
    1,576         960     period                     2,245   1,430   17,480


Consolidated Balance Sheet

       At          At                                            At
   30 Jun      31 Dec                                         30 June
     1999        1999                                          2000
     US$m        US$m                                 US$m      £m        HK$m
                       ASSETS
                       Cash and balances at
    2,591       6,179    central banks               3,494   2,306      27,236
                       Items in the course of
                          collection from other
    6,776       5,826     banks                      8,126   5,363      63,342
                       Treasury bills and other
   23,683      23,213    eligible bills             21,380  14,111     166,657
                       Hong Kong SAR Government
                         certificates of
    7,277       9,905    indebtedness                7,910   5,221      61,664
   96,136     100,077  Loans and advances to banks 112,667  74,360     878,239
                       Loans and advances to
  236,125     253,567    customers                 261,593 172,651   2,039,117
   75,066     110,068  Debt securities             104,143  68,734     811,794
    4,420       4,478  Equity shares                 5,503   3,632      42,896
                       Interests in associated
      875         926    undertakings                3,542   2,338      27,610
                       Other participating
      297         280    interests                     128      84         998
      299       6,541  Intangible fixed assets       6,372   4,206      49,670
   11,640      12,868  Tangible fixed assets        12,505   8,253      97,476
   26,564      29,363  Other assets                 26,967  17,799     210,204
                       Prepayments and accrued
    4,771       5,848    income                      5,950   3,927      46,380
  496,520     569,139  Total assets                580,280 382,985   4,523,283

                       LIABILITIES
                       Hong Kong SAR currency
    7,277       9,905    notes in circulation        7,910   5,221      61,664
   35,920      38,103  Deposits by banks            37,026  24,437     288,617
  315,639     359,972  Customer accounts           389,096 256,803   3,033,003
                       Items in the course of
                         transmission to other
    5,090       4,872    banks                       5,922   3,909      46,162
   29,084      33,780  Debt securities in issue     20,680  13,649     161,201
   48,920      59,584  Other liabilities            51,237  33,816     399,389
                       Accruals and deferred
    4,696       6,129    income                      5,959   3,933      46,450
                       Provisions for liabilities
                         and charges
    1,264       1,388    - deferred taxation         1,362     899      10,617
    2,691       2,920    - other provisions          2,991   1,974      23,315
                       Subordinated liabilities
    3,223       3,235  - undated loan capital        3,337   2,202      26,012
    7,718      12,188  - dated loan capital         12,091   7,980      94,249
                       Minority interests
    2,484       2,072  - equity                      2,148   1,418      16,744
      872       1,583  - non-equity                  5,202   3,433      40,549
    3,514       4,230  Called up share capital       4,266   2,816      33,253
   28,128      29,178  Reserves                     31,053  20,495     242,058

   31,642      33,408  Shareholders' funds          35,319  23,311     275,311

  496,520     569,139  Total liabilities           580,280 382,985   4,523,283


Consolidated Cash Flow Statement

                                             Half year to
Figures in US$m                      30 Jun     30 Jun    31 Dec
                                       2000       1999      1999

Net cash inflow from operating
  activities                         17,896     12,768     8,776

Dividends received from
  associated undertakings                67         84         2

Returns on investments and
  servicing of finance:
  - Interest paid on finance
    leases and similar hire
    purchase contracts                  (13)       (14)      (11)

  Interest paid on subordinated
    loan capital                       (533)      (379)     (430)
  Dividends paid to minority
    interests
    - equity                           (245)      (199)     (469)
    - non-equity                        (42)       (35)      (41)

Net cash (outflow) from returns
  on investments and servicing
  of finance                           (833)      (627)     (951)

Taxation paid                          (994)      (701)     (874)

Capital expenditure and financial investments:
  - Purchase of investment
    securities                      (58,517)   (34,526)  (73,850)
  - Proceeds from sale of
    investment securities            62,501     30,703    60,682
  - Purchase of tangible fixed
    assets                             (631)      (488)     (681)
  - Proceeds from sale of
    tangible fixed assets               102         87       122

Net cash inflow/(outflow) from
  capital expenditure
  and financial investments           3,455     (4,224)  (13,727)

Acquisitions and disposals:
  Net cash (outflow)/inflow from
    acquisition of and increase
    in stake in subsidiary
    undertakings                     (9,764)      (123)      848
  Purchase of interest in
    associated undertakings and
    other participating interests    (2,626)       (32)      (91)
  Proceeds from disposal of
    associated undertakings and
    other participating interests       140          3        25

Net cash (outflow)/inflow from
  acquisitions and disposals        (12,250)      (152)      782

Equity dividends paid                (1,286)    (1,049)     (889)

Net cash inflow/(outflow) before
  financing                           6,055      6,099    (6,881)

Financing:
  Issue of ordinary share capital        17      2,978       110
  Issue of preference share
    capital                           3,614          -         -
  Subordinated loan capital
    issued                              481        714     1,387
  Subordinated loan capital
    repaid                             (245)      (452)     (147)

Net cash inflow from financing        3,867      3,240     1,350
Increase/(decrease) in cash           9,922      9,339    (5,531)


Statement of total consolidated recognised gains and losses for the half-
year to

   30 Jun    31 Dec                                              30 Jun
     1999      1999                                                2000
     US$m      US$m                                                US$m

                       Profit for the period attributable to
    2,694      2,714     shareholders                             3,525
                       Unrealised (deficit) on revaluation of
                         investment properties:
        -        (45)    - subsidiaries                               -
        -         (1)    - associates                                 -
                       Unrealised surplus on revaluation of
                         land and buildings (excluding
        -        371     investment properties)                       -
     (764)       142   Exchange and other movements                (819)

                       Total recognised gains and losses for
    1,930      3,181     the period                               2,706


Reconciliation of movements in consolidated shareholders' funds for the
half-year to

  30 Jun     31 Dec                                            30 Jun 
    1999       1999                                              2000 
    US$m       US$m                                              US$m 

                      Profit for the period attributable to
   2,694      2,714     shareholders                            3,525
  (1,118)    (1,754)  Dividends                                (1,280)
   1,576        960                                             2,245

                      Other recognised gains and losses
    (764)       467     relating to the period                   (819)
   3,008        295   New share capital issued                    340
     (30)         -   Less: issue costs                             -
                      Capitalised reserves arising on issue
                        of shares to a qualifying employee
       -       (185)    share ownership trust                    (323)
                      Amounts arising on shares issued in
     450        229     lieu of dividends                         468
   4,240      1,766   Net addition to shareholders' funds       1,911

                      Shareholders' funds at beginning of
  27,402     31,642     period                                 33,408

  31,642     33,408   Shareholders' funds at end of period     35,319


Net interest income
                                       Half-year to
Figures in US$m         30 Jun 2000     30 Jun 1999      31 Dec 1999

                                  %                %               %
Europe                  2,365  35.4     2,080   35.2     2,151  35.4
Hong Kong               2,003  30.0     1,815   30.7     1,920  31.6
Rest of Asia-Pacific      668  10.0       619   10.5       621  10.2
North America           1,057  15.8       817   13.8       870  14.3
Latin America             591   8.8       582    9.8       515   8.5

Net interest income     6,684 100.0     5,913  100.0     6,077 100.0

Average interest-earning
  assets (AIEA)       484,247         413,778          424,583


Net interest spread      2.23%           2.35%            2.26%

Net interest margin      2.78%           2.88%            2.84%


Net interest income was US$771 million, or 13.0 per cent,
higher than the first half of 1999 at US$6,684 million with a
large part of this increase due to the acquisition of the
former Republic and Safra Republic businesses. Net interest
income in Hong Kong was US$188 million, or 10.4 per cent,
higher reflecting balance sheet growth together with a small
increase in margin as the benefit of increased spreads on
time deposits was largely offset by competitive pricing on
the mortgage book; this was partially offset by a reduced
contribution from net free funds in Hang Seng Bank. In local
currency terms, there was a smaller increase in the UK where
growth in customer accounts and personal lending was partly
offset by narrower spreads.

Average interest-earning assets increased by US$70.5 billion,
or 17.0 per cent, compared with the first half of 1999
principally as a result of acquisitions. Excluding
acquisitions, there was organic growth in Hong Kong driven
principally by the placement of customer deposits, together
with encouraging personal loan growth in Brazil and in the
UK, Korea, India and Taiwan.

The Group's net interest margin has been diluted by the
acquisition of the lower margin but high quality balance
sheets of the former Republic and Safra Republic businesses
and by the funding for these acquisitions. At 2.78 per cent
for the first half of 2000, the margin was 10 basis points
lower than for the same period in 1999. Net interest margin
was also impacted by competitive pricing in Hong Kong,
together with a further reduction in the proportion of the
balance sheet lent. The effect of these downward pressures
was partly offset by improved deposit spreads in Hong Kong
and an increase in recoveries of previously suspended
interest, together with an increased contribution from net
free funds.


Net interest margin of the principal banking subsidiaries by region

                                                Half-year to
                                        30 Jun     30 Jun      31 Dec
                                          2000       1999        1999
Europe

HSBC Bank plc (UK domestic)
- margin                                  2.70%      2.73%       2.70%
- AIEA (£m)                             81,749     80,654      79,958
- AIEA (US$m equivalent)               128,280    130,668     129,256

HSBC Republic Holdings (Luxembourg) S.A. (HRL)
  - margin                                1.35%         -           -
  - AIEA (US$m)                         20,903          -           -

Hong Kong

The Hongkong and Shanghai Banking
  Corporation Ltd and subsidiaries
  excluding Hang Seng Bank Ltd
  - margin                                2.55%      2.40%       2.53%
  - AIEA (HK$m)                        733,144    660,899     692,412
  - AIEA (US$m equivalent)              94,163     85,268      89,147

Hang Seng Bank Ltd
- margin                                  2.83%      2.96%      2.79%
- AIEA (HK$m)                          418,774     401,384     410,765
- AIEA (US$m equivalent)                53,786      51,786      52,885

Rest of Asia-Pacific

The Hongkong and Shanghai Banking
  Corporation Ltd
  - margin                                2.17%       2.11%       2.08%
  - AIEA (HK$m)                        297,533     275,175     280,389
  - AIEA (US$m equivalent)              38,214      35,502      36,046

HSBC Bank Malaysia Berhad
  - margin                                2.77%       2.85%       2.62%
  - AIEA (Ringgit m)                     24,055      23,586      24,734
  - AIEA (US$m equivalent)                6,330       6,207       6,509

HSBC Bank Middle East
  - margin                                 3.98%       4.05%       4.07%
  - AIEA (US$m)                           7,685       7,164       7,359


North America

HSBC Bank USA Inc (US domestic)
- margin                                   2.74%      3.94%       3.72%
- AIEA (US$m)                            65,296     31,710      32,052

HSBC Bank Canada
- margin                                   2.66%      2.28%       2.33%
- AIEA (C$m)                             23,816     23,215      23,868
- AIEA (US$m equivalent)                 16,243     15,555      16,135

Latin America

HSBC Bank Brasil S.A. Banco Multiplo
- margin                                  12.77%     14.90%      13.67%
- AIEA (Brazilian Reais m)               12,028     10,860      10,290
- AIEA (US$m equivalent)                  6,733      6,208       5,419

HSBC Bank Argentina S.A.
- margin                                   5.74%      6.30%       5.61%
- AIEA (Peso m)                           4,011      3,610       3,862 

The other main contributions to net
  interest income were from:

Figures in US$m

Former Republic businesses outside of
  North America                             168           -           -

Other HSBC Bank plc businesses              154         122         189

HSBC Holdings sub-group                      51         102         196



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