Subsidiary's Trading Statement

HSBC Hldgs PLC
11 November 1999


Follows an English translation of a German language news release 
which is being issued in Germany by a 73.5 per cent indirectly-owned
subsidiary of HSBC Holdings plc:

     HSBC TRINKAUS & BURKHARDT RESULTS TO 30 SEPTEMBER 1999 -
           GOOD PERFORMANCE EXPECTED FOR FULL YEAR

The Managing Partners of HSBC Trinkaus & Burkhardt, Dusseldorf,
which is 73.5 per cent indirectly-owned by HSBC Holdings plc,
anticipate a good performance for 1999 which will allow the
dividend payment to be increased further, even if the current
upward profit trend flattens out in the fourth quarter.

Operating profit for the first nine months was EUR 86.8
million, 42.8 per cent higher than for the same period last
year. The sharp increase of 22.9 per cent over the first half
year figure principally reflects the impact of turbulence in
financial markets in the third quarter 1998. This is evident in
the dealing results which in the first three quarters of 1999
more than doubled from EUR 16.2 million to EUR 37.2 million.

Consolidated net interest income rose 18.3 per cent. Good risk
management led to a further reduction in risk provisioning
against the loan book from EUR 6.2 million to EUR 4.4 million.
Net commission income of EUR 100.3 million exceeded last year's
excellent performance by 4.9 per cent, primarily due to higher
income from securities business.

Operating expenses rose in line with plan by 13.6 per cent to
EUR 146 million. This reflects costs for additional employees,
higher profit related pay and increased pensions costs, and
investment in the modernisation of the dealing area. Expenses
for the planned Internet Bank, due to become operational in
early 2000, were a further factor. Despite the rise in costs,
the cost:income ratio fell from 65.7 per cent to 61.6 per cent.
The number of employees was 1,277 as at 30 September,
approximately 5 per cent higher than at 30 September 1998.

Profit before tax rose in the period under review by 33.2 per
cent to EUR 87.9 million. This equates to - calculated as a
full year - a return on equity of 20.2 per cent, compared to
15.9 per cent for the corresponding period last year.

Profit after tax rose by 42.6 per cent to EUR 46.9 million.
Earnings per share, calculated in accordance with International
Accounting Standards as used by the bank for its accounts, rose
from EUR 1.25 to EUR 1.78.

Institutional investor business and proprietary trading in
particular performed well. Corporate banking again succeeded in
surpassing last year's significant contribution, whilst private
banking business fell back slightly.

Corporate finance business was particularly successful in the
period under review, with an appreciable increase in the number
of IPO's lead managed by HSBC Trinkaus & Burkhardt.

Since 31 December 1998 the consolidated balance sheet has grown
by 3.5 per cent to EUR 11.7 billion. Shareholders' funds
increased by 3.5 per cent to EUR 579.9 million. As at the end
of September the total capital base represented 11.2 per cent
of risk weighted assets. The core capital ratio stood at 7.9
per cent.

With regard to off-balance sheet business, the nominal amount
of outstanding derivatives business as at 30 September 1999
stood at EUR 74.2 billion, compared with EUR 87.2 billion at 
31 December 1998. Of the total, EUR 58.7 billion related to
interest rate derivatives, EUR 14.4 billion to currency
derivatives and EUR 1.1 billion to equity and index related
derivatives. The replacement cost of derivative contracts with
a positive value (the credit risk of these contracts), fell
from EUR 2.17 billion to EUR 1.55 billion. The market risk of
all outstanding derivatives transactions reduced from EUR 19.9
million to EUR 11.1 million.

The Managing Partners anticipate a subdued performance in the
final quarter of 1999. A lower number of transactions is
expected in securities trading as customers hold back pending
possible Year 2000 issues. The associated fall in commission
income will then place results from dealing on the equities and
interest rate markets under pressure. This together with a
planned increase in costs relating to the Internet Bank and
other items will lead to a below average result for the quarter.