Q3 & 9 Mths Results - Pre-tax Income Up 7.7%

HSBC HOLDINGS PLC
26 October 1999

                      HSBC USA INC.
         THIRD QUARTER 1999 RESULTS - HIGHLIGHTS

     * Pre-tax income rose 7.7 per cent in the third quarter
       of 1999 to US$191 million from US$177 million in the
       third quarter of 1998.

     * Third quarter 1999 net income decreased by 3.5 per
       cent to US$115 million from US$119 million during
       the same period of 1998, reflecting a higher tax
       rate.

     * Return on equity for the third quarter declined to
       19.86 per cent from 22.47 per cent in the third
       quarter of 1998, reflecting a higher tax rate and a
       larger capital base.

     * The cost:income ratio for the third quarter was 48.4
       per cent, compared to 49.4 per cent in the
       comparable period in 1998.

HSBC USA INC REPORTS HIGHER THIRD QUARTER PRE-TAX INCOME

HSBC USA Inc. (formerly HSBC Americas, Inc.) reported pre-
tax income of US$191 million for the third quarter of
1999, up 7.7 per cent from US$177 million in the third
quarter of 1998.

Net income for the third quarter declined 3.5 per cent to
US$115 million from US$119 million during the same period
of 1998. The effective tax rate for the quarter rose to
40 per cent, compared to 33 per cent in the third quarter
of last year.  The effective tax rate rose towards the
statutory rate as tax losses carried forward, which had
reduced taxes in the past, have been fully utilized.

Return on average common equity for the third quarter of
1999 declined to 19.86 per cent from 22.47 per cent in
the third quarter of 1998, reflecting a higher tax rate
and a larger capital base.  The cost:income ratio was
48.4 per cent.

Total loans at 30 September 1999 were US$23.5 billion,
up 11.76 per cent from US$21.1 billion at 30 September 1998,
due to growth in the commercial loan book as well as the
acquisition of the U.S. branches of The Hongkong and
Shanghai Banking Corporation Limited at the end of 1998.
Total assets were US$34.4 billion and US$ 33.3 billion at
30 September 1999 and 1998, respectively.  Common equity
as a proportion of total assets increased to 6.8 per cent
as compared to 6.3 per cent last year.

Malcolm Burnett, chief executive officer of HSBC USA Inc.,
said: 'We've ended the third quarter as we did the
previous two with solid earnings and performance ratios
that put us in the top tier of US banking companies. Our
strategic imperative to grow our wealth management portfolio
has yielded solid results. Many more customers are coming to
us for investments and insurance, as well as more traditional 
banking products.'

HSBC USA Inc. is a New York-based bank holding company. 
Its principal subsidiary, HSBC Bank USA (formerly Marine 
Midland Bank) has 373 branches in New York and two in 
Pennsylvania. It 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$497 billion at 30 June
1999, the HSBC Group is among the world's largest banking
and financial services organizations.

Quarterly Summary
Figures in US$ millions             Quarter ended          Year to date    
                                  30Sep99    30Sep98     30Sep99    30Sep98

Income before taxes                190.8       177.2       584.1      561.0 
                                                                            
Income before taxes                                                         
  (excluding certain gains)^       190.8       177.2       569.1      532.9 
                                                                            
Net income                         114.9       119.1       349.8      368.4 
                                                                            
Profitability ratios (%)               %           %           %          % 
Return on average assets            1.33        1.41        1.37        1.51 
Return on average common           19.86       22.47       21.03       23.49 
equity
Cost:income ratio                  48.44       49.42       48.38       48.33 
                                                                            
Staff numbers (full time                                         
equivalents)                                               9,040       9,205
                                                                            
Average balances                    US$m        US$m        US$m       US$m 
Loans                             23,242      20,960      23,330     21,166 
Earning assets                    32,029      31,592      31,817     30,609 
Total assets                      34,228      33,588      34,040     32,574 
Deposits                          26,678      25,813      26,447     24,622 
Common equity                      2,295       2,103       2,225      2,097 
                                                                            
Net yields on a taxable                %           %           %          % 
equivalent basis
Net yield on earning assets         3.79        3.62        3.89       3.81 
Net yield on total assets           3.55        3.41        3.63       3.58 
                                                                            
Capital (at end of period)                                  US$m       US$m 
Common equity                                            2,352.9    2,089.7 
As a percentage of total                                                    
assets                                                      6.84%     6.27%
                                                                            
^ 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.


Consolidated statement of income
Figures in US$ thousands           Quarter ended     Quarter ended            
                                      30Sep99           30Sep98       

Interest income                                                 
Loans                                 456,846           440,269 
Securities                             50,308            55,764 
Trading assets                         13,327            12,003 
Deposits with banks                    18,316            31,346 
Federal funds sold and securities                               
purchased
  under resale agreements              41,285            54,531 
Total interest income                 580,082           593,913 
                                                                
Interest expense                                                
Deposits                                                        
- In domestic offices                (157,530)         (166,593)
- In foreign offices                  (58,061)          (66,460)
Short-term borrowings                 (31,325)          (50,785)
Long-term debt                        (27,657)          (22,266)
Total interest expense               (274,573)         (306,104)
                                                                
Net interest income                   305,509           287,809 
                                                                
Provision for credit losses           (22,500)          (20,000)
Net interest income, after provision   
for credit losses                     283,009           267,809
                                                                
Other operating income                                          
Trust income                           12,554            11,885 
Service charges                        33,205            28,746 
Mortgage servicing revenue              6,086            11,518 
Other fees and commissions             41,933            36,704 
Trading revenues                        1,801             1,385 
Other income                           12,531            11,825 
Total other operating income          108,110           102,063 
                                                                
Total income from operations          391,119           369,872 
                                                                
Other operating expenses                                        
Salaries and employee benefits       (110,011)         (104,959)
Net occupancy expense                 (23,051)          (23,106)
Other expenses                        (67,297)          (64,629)
Total other operating expenses       (200,359)         (192,694)
                                                                
Income before taxes                   190,760           177,178 
Applicable income tax expense         (75,850)          (58,100)
                                                                
Net income                            114,910           119,078 

                                                                          
Consolidated statement of income
Figures in US$ thousands           Year to date      Year to date 
                                     30Sep99            30Sep98
                                                                  
Interest income                                                   
Loans                               1,379,579         1,335,644 
Securities                            163,009           171,325 
Trading assets                         35,824            38,283 
Deposits with banks                    70,121            88,908 
Federal funds sold and securities                                 
  purchased under resale agreements    82,797           115,903 
Total interest income               1,731,330         1,750,063 
                                                                  
Interest expense                                                  
Deposits                                                          
- In domestic offices                (469,714)         (494,406)
- In foreign offices                 (155,741)         (154,495)
Short-term borrowings                (101,076)         (158,505)
Long-term debt                        (81,104)          (72,614)
Total interest expense               (807,635)         (880,020)
                                                                  
Net interest income                   923,695           870,043 
                                                                  
Provision for credit losses           (67,500)          (59,000)
                                                                  
Net interest income, after provision               
for credit losses                     856,195           811,043
                                                                  
Other operating income                                            
Trust income                           38,662            35,042 
Service Charges                        92,914            85,230 
Mortgage servicing revenue             26,076            35,429 
Other fees and commissions            122,972           107,455 
Trading revenues                        7,277             5,545 
Other income                           50,704            61,354 
Total other operating income          338,605           330,055 

Total income from operations        1,194,800         1,141,098 
                                                                  
Other operating expenses                                          
Salaries and employee benefits       (319,421)         (306,920)
Net occupancy expense                 (67,314)          (66,945)
Other expenses                       (223,984)         (206,195)
Total other operating expenses       (610,719)         (580,060)
                                                                  
Income before taxes                   584,081           561,038 
Applicable income tax expense        (234,250)         (192,600)
                                                                  
Net income                            349,831           368,438 

                                                                        
Condolidated balance sheet
Figures in US$ thousands            At 30Sep99      At 30Sep98
                                                     
Assets                                                           
Cash and due from banks                866,729         937,676 
Interest bearing deposits with banks 2,291,434       3,836,338 
Federal funds sold and securities                                
  purchased under resale agreements  2,141,850       1,634,540 
Trading assets                         979,022         894,111 
Securities available for sale        3,308,207       4,022,910 
                                                                 
Loans                               23,540,623      21,063,361 
Less - allowance for credit losses    (368,269)       (402,684)
Loans, net                          23,172,354      20,660,677 
                                                                 
Premises and equipment                 197,756         208,042 
Accrued interest receivable            211,102         213,890 
Intangible assets                      482,189         469,841 
Other assets                           725,921         464,043 
                                                                 
Total assets                        34,376,564      33,342,068 
                                                                 
Liabilities                                                      
Deposits in domestic offices                                     
- Non-interest bearing               2,848,582       3,909,959 
- Interest bearing                  19,125,207      16,853,382 
Interest bearing deposits in                              
  foreign offices                    4,758,157       4,894,946 
Total deposits                      26,731,946      25,658,287 
                                                                 
Short-term borrowings                2,637,405       3,415,730 
Interest, taxes and other liabilities  808,457         880,068 
Long-term debt                       1,845,876       1,298,314 
Total liabilities                   32,023,684      31,252,399 
                                                                 
Shareholders' equity                                             
Common stock                                 5               5 
Capital surplus                      1,809,149       1,805,867 
Retained earnings                      572,010         218,550 
Accumulated other comprehensive                                  
income                                 (28,284)         65,247 
Total shareholders' equity           2,352,880       2,089,669 
                                                                 
Total liabilities and shareholders'                              
equity                              34,376,564      33,342,068