FORM 6

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Report of Foreign Private Issuer

Pursuant to Rule 13a - 16 or 15d - 16 of

the Securities Exchange Act of 1934

 

For the month of  May, 2008

 

HSBC Holdings plc

42nd Floor, 8 Canada Square, London E14 5HQ, England

 

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F).

Form 20-F   X              Form 40-F ......

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934).

Yes.......          No    X

(If "Yes" is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- ..............).

 

 


The following text is the English version
 
of a news release issued in 
Germany
 by HSBC Trinkaus & Burkhardt, a 78.6 per cent indirectly owned subsidiary of HSBC Holdings plc.


20 May 2008


HSBC TRINKAUS & BURKHARDT
 AG
FIRST QUARTER 2008 RESULTS



Overview
D
espite the 
continuing
 turbulence 
i
n 
global 
capital markets
, t
he 
b
ank report
ed
 an operating profit of €52.2 million 
(Q1 2007: €61.5 million) 
and net 
profit
 
after tax 
of €34.6 million
 
(Q1 2007: €41.5 million) 
for the first quarter of 2008
. 
T
hese fig
ures represent declines of 15.1 per cent and 16.6 per cent
 respectively, compared to the same quarter of last year, 
which
 was one of the best in the 
b
ank's history. 

Financial commentary
N
et interest income 
grew strongly, up
 
38.0 per cent
 to €28.3 million (Q1 2007: €20.5 million). This growth was due predominantly to a higher level of customer deposits which was 
utili
sed to fund 
an increase in loans and advances to customers.

Net loan 
impairment and other credit risk 
provisions of €1.2 million 
(Q1 2007: €
-
0.4 million) 
can be
 
attribute
d
 mainly to an increase in collective impairment provisions. HSBC Trinkaus continues 
to apply
 a 
conservative
 default risk assessment policy
.

N
et 
fee 
income
 
in the first quarter of 2008
, a
t €90.0 million
,
 
compared to €89.2 million
 for the first quarter of 2007. T
his include
s
 a €10.7 million contribution from International Transaction Services GmbH (ITS), 
which is i
n the consolidated figures for the first time.

N
et trading income of €33.5 million 
represent
ed
 
a decline of 10.7 per cent
 compared to the figure of €37.5 million reported for Q1 2007. This is 
mainly 
due to a 
fall
 
in 
the 
trading 
of 
interest 
rate 
product
s
 
and foreign currency. Income from equities and equity/index derivati
ves trading was 4.0 per cent
 up on the Q1 2007 result 
a
t €28.5 million.

Administrative expenses
 in the first quarter of 2008
 increased by 12.1% 
compared to the same quarter in 2007
, from €88.6 million
 
to €99.3 million, mainly as a result of the 
inclusion
 of ITS
. At 65.5 per cent
,
 the cost:income ratio was 
14.5% higher than in the same period in 2007 (Q1 2007: 57.2%) 
but 
still at the lower end of the 
acceptable
 
ran
ge for our business model of 65 per cent to 70 per cent
.

Results by business segment
The 
business se
gment
s experienced
 varying performance in the first quarter of 2008. The 
wider 
effects of the subprime crisis on the financial markets had little impact on Co
r
porate Banking
,
 which improve
d
 on its 
previous 
year result. However, the other two client se
ctors, Private and Institutional Banking, 
and Global Markets were 
unable 
to 
overcome 
fully 
the 
difficult 
market conditions
 and 
therefore 
did 
not repeat the 
record 
results 
of
 the first quarter of 2007.
 

In Corporate Banking, net interest income rose as a result of a considerable increase in sight deposits and lending volumes
, 
along with
 
an increase in deposit 
margin
s
. There was also a substantial increase in net 
fee
 
income. 

Transaction revenues in the securities business declined in the Private Banking 
business,
 
due to the 
caution
 
shown by many investors in the adverse market environment. However, this decline was compensated by higher revenues in other 
areas
 such as Asset Management. 

In Institutional Banking
,
 there was a slight increase in revenues as a result of 
increased business in 
securities, alternative investments and custody. Although 
not matching
 its performance
 in the same period in 2007
, 
despite the unfavourable market conditions, 
Global Markets
 
made a 
strong contribution to revenue in the first quarter of 2008
 of
 
€26.1 million.

Outlook
HSBC Trinkaus 
performed 
well 
during the
 difficult first 
quarter of 2008
. T
he
 
b
ank's clear 
and consistent strategy of continuity in personnel and relationship management geared exclusively to the client
 
proved 
to
 be an important factor. The 
b
ank's 
financial
 
strength gives it every reason to be optimistic about the future
 and it intends to sustain its 2007 level of performance during 2008.
 This aim will be supported by 
the bank's beneficial relationship with the wider
 HSBC Group
,
 which will be used 
further 
to expand market shares within the clearly-defined target groups - private clients, corporate clients and institutional clients. 

Media enquires to 
Steffen Pörner, +49 211 910 1664
 or at 
steffen.poerner@hsbctrinkaus.de

Notes to Editor:

1. 
HSBC Trinkaus

HSBC Trinkaus is one of the leading private banks in 
Germany
 and part of the globally-operating HSBC Group. With over 2,150 employees HSBC Trinkaus can be found at six locations in 
Germany
 in addition to the head office in Düsseldorf, and has access to the HSBC Group's global network. With total assets of €21.0 billion* and €85.0 billion in funds under management and administration*, the bank has a Fitch rating of 'AA'. The Bank's central target groups are wealthy private clients, corporate clients and institutional clients. *(Figures as at 31 March 2008)

All HSBC Trinkaus press releases can be found in the "About us", "Press" section of the website at www.hsbctrinkaus.de.

2. HSBC Holdings plc
HSBC Holdings plc serves over 12
8
 million customers worldwide through around 10,000 offices in 83 countries and territories in Europe, the Asia-Pacific region, the 
Americas
, the Middle East and 
Africa
. With assets of some US$2,
354
 billion at 3
1 December
 2007, HSBC is one of the world's largest banking and financial services organisations. HSBC is marketed worldwide as 'the world's local bank'.
 

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

HSBC Holdings plc

                                                                                                       By:       

                                                                                                                          Name: P A Stafford

                                                                                                                                            Title: Assistant Group Secretary

                                                                                                                                                                                                         Date: May 20, 2008