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 2009
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
REPORTS HIGHER OPERATING PROFIT IN
FIRST HALF OF 2009 DESPITE DIFFICULT ECONOMIC ENVIRONMENT
Operating profit up 4.4 per cent to €105.9 million
Net interest income up 16.6 per cent to €73.8 million
Tier 1 ratio higher at 9.7 per cent
HSBC Trinkaus performed well in the first half of 2009 in the unprecedented
economic environment. The bank
'
s stable performance in the first half of the year contributed to a 4.4 per cent
increase in operating profit, from €101.4 million for the six months to 30
June 2008 to €105.9 million.
The strengths shown by HSBC Trinkaus are clear to see in the current market
situation. The bank
'
s business model - clearly oriented towards high net worth individuals, corporate
and institutional clients and supported by risk-aware trading operations - has
proven to be successful in these uncertain times and will support the bank
'
s future performance. In addition, as a member of the HSBC Group, the bank offers
its clients the best of both worlds, namely the continuity, professionalism and
individuality of a private bank together with the international service capacity
and capital strength of a global financial services provider.
HSBC Trinkaus has not been completely immune to the market turmoil, however.
Falling prices with respect to certain financial assets resulted in some further
impairments. As a result, profit before tax declined by 9.1 per cent in the period
from €101.2 million to €92.0 million. The return on equity before tax was
19.2 per cent for the first half of 2009, compared with 22.1 per cent in the first
half of 2008. This compares favourably to other German banks. The bank
'
s tier 1 ratio increased to 9.7 per cent at 30 June 2009 from 8.8 per cent at 31
December 2008. Overall, HSBC Trinkaus recorded good profitability and strong
capital resources.
Net interest income was up 16.6 per cent in the period, to €73.8 million (six
months ended 30 June 2008: €63.3 million). This increase is primarily due to
expanded bond holdings in the banking book, where HSBC Trinkaus increased its
exposure in high grade new issues. Partially offsetting this was a significant
decline in the margin on deposit business as a result of the lower level of
interest rates which could not be fully offset by a widening of the credit margin
in the corporate loan book.
Net loan impairment and other credit risk provisions amounted to €0.1 million
(six months ended 30 June 2008: €0.7 million). There was a net reversal of
€0.9 million in the period with respect to individually assessed impairments.
However, an additional charge of €1.0 million was made to collectively
assessed impairments reflecting the continued weakness in the economy. The bank
'
s conservative stance is unchanged in relation to the assessment of default risks.
At €172.5 million, net fee income in the period was only slightly lower than
the €178.6 million for the first half of 2008. Lower transaction-related
securities commission, in particular in the equities business, was mainly
responsible for this decline. In the real estate business HSBC Trinkaus benefited
from the successful placement of a real estate fund.
There was a reduction in net trading income of 5.1 per cent in the period to
€59.2 million (six months ended 30 June 2008: €62.4 million), essentially
due to lower volumes of equity and equity/index derivatives trading. On the other
hand, revenues from warrant transactions increased as a result of higher market
shares. Significant spread widening in trading on interest products led to
mark-to-market valuation losses in respect of bonds. However, due to its good
liquidity position HSBC Trinkaus was able to more than compensate with a favourable
performance in money market business leading to an increased contribution from
interest rate trading. The bank also increased earnings from foreign exchange and
reported higher gains on derivatives held in the banking book for hedging strategic
positions.
Net other income/expenses of €11.5 million, compared with €2.0 million in
the previous period, were influenced by one-off items. These included the
successful placement of a real estate fund and the gain on the sale of a building
in
Luxembourg
. Income from financial assets was impacted by further impairments to equities,
fund units and bonds which mainly occurred during the first quarter
of 2009.
Tight cost discipline meant administrative expenses remained in line with last year
at €204.9 million (six months ended 30 June 2008: €204.4 million). HSBC
Trinkaus continued to invest in improving its IT systems. At 69.0 per cent, the
cost:income ratio, a good indicator of success for the banking business, remains
within the target range for the bank
'
s business model of 65 per cent to 70 per cent.
Total assets declined by a moderate 4.9 per cent to €21.1 billion compared to
the end of 2008. Customer deposits remain HSBC Trinkaus
'
main source of financing reflecting the continued confidence its customers
place in the bank
'
s strength.
Global Markets, Institutional Clients and Corporate Banking reported improved
results compared to the previous year despite the uncertain global financial market
and economic crisis. The Private Banking segment was not able to repeat its
prior-year performance under these conditions. The impact of the financial market
crisis mainly resulted in the losses being reported by the bank coming from
financial assets held in the bank
'
s central divisions.
The Institutional Clients segment was particularly successful compared to the
previous year in issuing as well as the distribution and trading of fixed-interest
securities. This more than compensated for the loss of revenues in the asset
management and equities business. The Corporate Banking segment succeeded in
increasing net fee income primarily from foreign exchange transactions and
investment banking but also from the origination and placement of bonds compared to
the previous year. There was a significant reduction in net interest income from
corporate clients
'
sight deposits due to lower margins reflecting the interest rate cuts made by
the European Central Bank, despite a strong increase in volumes. However, this was
compensated for by increased net interest income in the lending business due to
higher margins. In the Global Markets segment, the reduction of revenues in equity
derivatives trading due to the market environment was more than offset by money
market and foreign exchange transactions in the Treasury business. On the other
hand, within the Private Banking business, higher revenues in the real estate
business only partly made up for the major decline in revenues in the securities
business as a result of the restraint shown by many investors in the difficult
market conditions.
The overall economic environment will remain a challenge for HSBC Trinkaus and the
entire sector for the foreseeable future. HSBC Trinkaus is well positioned to take
advantage should opportunities arise in the current market situation. This is due
to its conservative stance within the framework of a proven business model, the
clear orientation to its target groups and its integration into HSBC
'
s financially strong and profitable global network. The bank believes it is well
prepared for the months ahead.
Challenges will arise, in particular in the corporate business, in the second half
of the year. HSBC Trinkaus continues to focus on the bank
'
s credit book. Conditional on the bank not experiencing major credit losses in its
lending business, a solid, albeit slightly lower operating profit is forecast for
2009 compared with 2008. The pressures resulting from valuations on financial
assets should ease slightly as a result of the government measures introduced to
stabilise the capital markets.
The trust clients place in the bank is an important factor of its success. HSBC
Trinkaus therefore aims to expand its market share in clearly defined target groups
-
'
private banking
'
,
'
corporate clients
'
and
'
institutional clients
'
- through 2009. The bank
'
s primary focus is to continue supporting its existing customer base, to weather
these difficult times together, in partnership.
HSBC Trinkaus is one of
Germany
'
s leading private banks and part of the HSBC Group. With 2,245 employees
,
HSBC Trinkaus can be found in six locations in
Germany
in addition to the head office in Düsseldorf
,
and has access to the global network of the HSBC Group. With tota
l assets of €21.1 billion and €
88.7 billion in funds under management and administration
(figures at 30 June 2009)
, the bank has had a AA Fitch Rating since December 2007 which was again confirmed
in January 2009. The bank
'
s central target groups are wealthy private clients, corporate clien
ts and institutional clients.
Press releases can be found on the www.hsbctrinkaus.de homepage under the heading
'About us' > 'Press'.
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in
London
. The Group serves customers worldwide from around 8,500 offices in 86 countries
and territories in Europe, the Asia-Pacific region, the
Americas
, the Middle East and
Africa
. With assets of US$2,422 billion at 30 June 2009, 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:
13 August 2009