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  August, 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- ..............).

 

 
20
 
August 2008

The following text is the English version of a news release issued in Germany by HSBC Trinkaus & Burkhardt
 AG
, a 78
.
6 per cent indirectly owned subsidiary of HSBC Holdings plc.

Press Rel
e
ase


HSBC T
RINKAUS REPORTS ROBUST EARNINGS 
IN THE FIRST HALF OF 2008 
 


HSBC Trinkaus
 
produced a strong performance 
in the first half of 2008
 and d
espite the continuing turmoil 
in
 the 
financial 
markets was able to 
strengthen its position
 in the German banking sector
.
 

Overall, o
perating profit 
declined 
by 15.3
 per cent
 
on the record performance achieved in the same period last year from 
€119.7 million 
to 
€
101.4 
million
.
 
N
et profit 
after tax 
also 
fell,
 by 17.7
 per cent
 to 
€
69.5 million.
 
However
, o
perating profit and net profit 
after tax 
for the 
six months
 
ended 30 June 2008 
were 
consistent with the same period
 in 
2006
.


Financial commentary
 
Net interest income
 over the period 
grew by 16.6
 per cent
 to 
€
63.3 million
 from €54.3 million for the first half of 2007
. 
N
et loan impairment and other credit risk provisions
 totalled 
€
0.7 million 
in the period 
compared 
to 
a net reversal of 
€
2.7 million in the 
same period in 2007
. 
Th
is 
level of 
charge
 continues to 
demonstrate the Bank's cautious default risk assessment policy
.  

Net fee income 
for
 the first half of 2008 
increased 
8.2
 per cent
 to 
€
178.6 million
 from €165.0 million in 
the 
same period in 2007
. 
A significant contribution to this increase came from 
International Transaction Services GmbH (ITS)
,
 
the
 
securities settlement subsidiary
 acquired 
on 
1 January 2008
 and consolidated 
here 
for the first time
.

Net trading income in the first six months 
of 2008 fell 
by 4.3
 per cent
 to 
€
62.4 million
 from €65.2 million in the same period in 2007
.
 
E
quities and equity/index derivatives trading remains the strongest contributor to net trading income
,
 growing by 3.9 per cent over the 
six month 
period 
to 
€
48.5 million
 
from €46.7 million 
in the first half of 2007
. However
,
 
this was offset
 by 
a
 decline of 24.9
 per cent in income from 
interest 
rate 
product
s
 and foreign exchange
 in the six month period to €
13.9
 million
 from €18.5 million in the 
same period 
last year
.
 

Administrative expenses 
grew by
 15.4
 per cent
 to 
€
204.4 million. The increase in staff expenses was due to the consolidation of ITS
 
and
 
an
 
increase in the number of employees
 
from almost 2
,
000 in the first half of 2007 to more than 2
,
150
 currently
. At 66.7
 per cent
,
 the 
cost: income
 ratio 
of HSBC Trinkaus 
is still within the 
target
 range of 65
 
to 70
 per cent
.

Results by business segment
 
The balanced
 nature of the
 HSBC Trinkaus 
business 
model 
proved robust 
in the first half of 2008. The Corporate Banking and Institutional 
C
lients segments reported increases in earnings despite the 
downturn 
in
 the financial market
s
.
 However
,
 t
he 
challenges 
posed by 
unfavourable market 
conditions 
prevented the Private Banking and Global 
Markets
 
businesses 
from repeating their 
robust 
prior-year results.

Corporate Banking recorded a
n increase
 
i
n profits
 compared to the 
same period last
 year
. This was due 
large
ly
 
to higher net interest income as a result of 
an
 increase in sight deposits and lending volume 
as well
 as an increase in 
deposit 
margin
s
. 
T
here was
 also 
an improvement in net 
fee income in the securities, international and foreign exchange business
es
. 
The 
Institutional Client segment was 
again 
successful
 
in the
 area of 
equities, fixed income and custody. 

Private Banking reported lower transaction revenues in the securities business as many investors 
continue
d
 to 
exercis
e
 considerable caution 
in the
 present
 environment
. 
I
ncreas
ing 
revenues in A
sset Management were able to almost fully compensate 
for 
this decline
.
 
Global Markets was 
the business segment most 
affected by unfavourable 
market 
conditions
 
and was therefore not able to 
repeat
 its prior-year result. 
There was
 also 
a decline in 
the Bank's
 
structured
 
interest and credit products
 business
. 

Forecast
 
HSBC Trinkaus sees good earnings 
o
pportunities
 - derived from its balanced business model, conservative approach to credit risk and connections to the wider HSBC Group - 
 in the second half of 
2008
, although the market environment will continue to be extremely challenging.

HSBC Trinkaus' 
cooperation with the HSBC Group
,
 with its presence in 85 countries
 
and territories
,
 
enable
s
 
the Bank
 to offer its clients
 local knowledge combined with global reach
. 
This strategic advantage will continue to open up the opportunit
ies
 for the Bank to expand market share within 
its
 clearly-defined target groups - high net worth private clients, corporate clients and institutional clients
.

Media 
e
nquiries:
 to 
Steffen Pörner
 on 
+ 49 211 910-1664
 or
 at
 
 
steffen.poerner@hsbctrinkaus.de

Notes for editors:

HSBC Trinkaus 
HSBC Trinkaus 
is one of the leading private banks in 
Germany
 and part of the globally-operating HSBC Group. In addition to the head office in Düsseldorf, HSBC Trinkaus is represented in six locations in 
Germany
 with over 2,1
5
0 employees and has access to the global network of the HSBC Group. With total assets of €20.6 billion* and €88.2 billion in funds under management and administration*, the Bank has a Fitch rating of AA. The core target groups are private clients, corporate clients and 
institution
al clients.
 
 
 
*(figures as at 30 June 2008)

P
ress releases can be found 
at:
 
www.hsbctrinkaus.de
 
in the section marked:
 
'
About us
'
. 

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: August 20, 2008