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 April, 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.
HSBC TRINKAUS DELIVERS RECORD RESULTS IN 2007
- Operating revenue up 12.6 per cent to EUR535.9 million
- Operating profit up 12.9 per cent to EUR206.0 million
- 9.7 per cent increase in net income before tax to EUR207.8 million
HSBC Trinkaus delivered record results in 2007 despite increasingly challenging
market conditions. Operating revenue increased 12.6 per cent to EUR535.9 million
while operating profit rose 12.9 per cent to EUR206.0 million. Return on equity
was 24.2 per cent before tax.
All business segments contributed to the bank's success with increased
profitability in private banking, corporate banking and the institutional
clients business as well as proprietary trading. In 2008 the Management Board
will seek to maintain and build on the increased profits delivered last year,
while acknowledging that net fees, commissions and trading profit depend largely
on the performance of the capital markets.
Results by business segment:
Net interest income increased 24.2 per cent to EUR110 million as average lending
and deposit volumes grew significantly due to the acquisition of new clients and
strengthening of existing business relationships. Credit risk provisioning
continued to reflect a cautious credit appetite.
Net fees and commissions rose by 12.9 per cent to EUR318.1 million and was the
most important contributor to operating revenue, accounting for 59.4 per cent of
total operating income. Despite continuing financial market uncertainties, the
securities business also reported an increase in fees and commissions of EUR21.6
million to a total of EUR203.7 million.
Trading profit was down 3.8 per cent to EUR100.1 million against 2006. The bank
had particular success in marketing retail products under the HSBC Trinkaus
Retail Derivatives brand and reached a new milestone in 2007 with the issue of
more than 23,000 certificates and warrants.
Administrative expenses increased by 11.7 per cent overall to EUR333.4 million.
Personnel expenses increased by 7.2 per cent to EUR203.3 million as the bank
recruited to meet the demands of a growing business and increased levels of
performance-related pay. Other administrative expenses increased by 20.5 per
cent mainly as a result of higher fees for consultancy services related to IT.
The implementation of MiFID, SEPA and Basel II in 2007 led to specific increases
in IT and administrative costs.
Despite a decline in net income from investments, the bank suffered no notable
write-downs as a result of the subprime crisis and HSBC Trinkaus has no
significant exposure to synthetic credit risk. Net income before tax grew by 9.7
per cent to EUR207.8 million. The Annual General Meeting on 17 June 2008 will
propose the distribution of a dividend of EUR2.50 as was also the case last
year.
Consolidated assets increased 12.8 per cent in 2007 to EUR21.1 billion. Loans
and advances to customers increased 34.7 per cent to EUR4.3 billion. This growth
largely reflected expansion in the client base. At the end of the year the
bank's total and core capital ratios were 10.7 per cent and 6.4 per cent
respectively.
Private banking again posted strong results in 2007 increasing to EUR42.2
million, the best performance in the bank's history. This was primarily the
result of increasing net fees and commissions in the securities business, but
was also due to the bank's successful customer acquisition strategy. Assets
under management increased to EUR26.4 billion, up 6.0 per cent on the previous
year.
Corporate banking also had a successful year. Despite strong competition for new
business it was able to achieve a 10.6 per cent increase in revenue to EUR46.1
million while maintaining robust credit quality. Alongside the domestic earnings
contribution, there was also a significant increase in business with German
corporate clients from the wider HSBC Group.
HSBC Trinkaus focussed significantly on investment banking during the course of
the year and the bank is now one of Germany's leading facilitators of capital
market transactions. The fact that HSBC Trinkaus has been able to secure a
significant share of capital markets business in the domestic German renewable
energy market is evidence that it was right to place greater emphasis on this
area of the business.
2007 was again a successful year for the institutional clients segment with an
increase of 5.0 per cent on 2006 to EUR59.1 million. Almost all product groups
produced a satisfactory performance led by the asset management and equity
business. By further stepping up cooperation with the HSBC Group, the bank was
able to significantly expand its product range.
Proprietary trading produced a record result of EUR64.5 million in 2007. This
represents the single biggest earnings contribution of all business segments.
Throughout the course of the year, more than 23,000 new leverage products,
discount and bonus certificates were issued - an increase of more than 60 per
cent on 2006.
The bank's subsidiary, HSBC Investments Deutschland, which manages institutional
assets and public funds, significantly increased revenues in both public and
special funds.
Internationale Kapitalanlagegesellschaft (INKA), another HSBC Trinkaus
subsidiary, was able to achieve record growth figures in 2007 despite capital
markets conditions worsening in the second half of the year. Assets under
management increased by 11.4 per cent to EUR56.6 billion, a higher level of
growth than the market as a whole. The number of funds increased from 286 to
295.
Following discontinuation of the joint venture with the Telekom subsidiary
'T-Systems' late last year, HSBC Trinkaus is now the sole shareholder of
International Transaction Services (ITS). As a result of strong stock market
activity and increased trading volumes, ITS reached new highs in 2007 in terms
of settlement volume: more than 66 million transactions were settled
representing an increase of 23.0 per cent versus 2006. The 100 per cent
acquisition of ITS is a clear signal of the bank's commitment to high-quality
service in securities settlement.
Note to editors:
HSBC Trinkaus
HSBC Trinkaus is one of the leading private banks in Germany and part of the
globally-operating HSBC Group. With over 1,800 employees HSBC Trinkaus can be
found in six locations in Germany in addition to the head office in Dusseldorf
and has access to the global network of the HSBC Group. With total assets of
EUR21.1 billion* and EUR90.1 billion in funds under management and
administration*, the bank has a Fitch IBCA rating of 'AA', the highest Fitch
rating of all German commercial banks. The bank's central target groups are
wealthy private clients, corporate clients and institutional clients. *(figures
as at 31 December 2007)
All HSBC Trinkaus press releases can be found on the Homepage
www.hsbctrinkaus.de under the heading "About us", "Press".
HSBC Holdings plc
HSBC Holdings plc serves over 128 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 31 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: 04 April 2008