SMC FY03 Results

HSBC Holdings PLC
16 April 2004

The following text is the English translation of a news release issued in France
by Societe Marseillaise de Credit, a wholly-owned subsidiary of HSBC Holdings
plc.

                         SOCIETE MARSEILLAISE DE CREDIT
                              2003 ANNUAL RESULTS

Against the backdrop of a significant recovery in the financial markets and a
less depressed economic environment in southern France than in the rest of the
country, Societe Marseillaise de Credit posted another improvement in its
earnings.

   •Operating income increased 1.8 per cent to €189.7 million.

   •Operating costs, which fell significantly in previous years, held firm at
    €122.6 million, a similar level to last year.

   •Operating profit before provisions increased by 5.2 per cent to
    €67.1 million, leading to further improvement in the cost:income ratio,
    which dropped from 65.6 per cent to 64.6 per cent.

   •Profit after tax rose by 72.6 per cent to €86.8 million, boosted by
    substantial write-backs of provisions for liabilities and charges.

   •Total customer assets increased to €4.8 billion, up 2.0 per cent. This
    comprised of a rise in sight deposits and a notable increase in life
    insurance and mutual funds.

   •New lending showed strong growth, with retail mortgages and business
    asset financing up 23.8 per cent. Business loans again accounted for 60.0
    per cent of the total loan book.

   •Credit exposure remained under tight control, allowing a net write back
    of provisions of €12.7 million.

The bank continued to invest heavily in its branch network; a total of 29
branches were refurbished.

Financial highlights

€ millions                                          2003          2002

Operating income                                   189.7         186.4

Operating costs                                    122.6         122.5

Operating profit before provisions                  67.1          63.8

Profit after tax                                    86.8          50.3

Cost:income ratio (%)                               64.6          65.6

Customer loans                                   1,290.6       1,220.5

Customer deposits                                2,430.4       2,415.3

Mutual funds, life insurance, other
  funds under management                         2,390.4       2,380.1

Notes to editors

HSBC Holdings plc

Societe Marseillaise de Credit is a subsidiary of CCF, which became a member of
the HSBC Group in July 2000. HSBC Holdings plc is headquartered in the UK. The
HSBC Group serves over 110 million customers worldwide from more than 9,500
offices in 79 countries and territories in Europe, the Asia-Pacific region, the
Americas, the Middle East and Africa. With assets of US$1,034 billion at 31
December 2003, HSBC is one of the world's largest banking and financial services
organisations. HSBC is marketed worldwide as 'the world's local bank'.

                      This information is provided by RNS
            The company news service from the London Stock Exchange