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Form 20-F X
Form 40-F
......
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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).
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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 & BURKHARDT
AG
THIRD
QUARTER 2008 RESULTS
-
Operating profit
declined
17.6 per cent to
€133.6 million
in the first nine months of 2008, compared with €162.6
million for the same period in 2007
-
Profit after tax was
€79.8 million
in the first nine months of 2008, down
28.3
per cent compared with the same period in 2007
-
Return on equity before tax of
17.0
per cent during the first nine months of 2008 compared with 26.5
per cent for the same period last year.
-
Customer deposits increase
d in the third quarter
by around €2 billion to
over €12 billion
-
Net interest income
rose from €83.6 million
to €97.0 million
in the nine months to 30 September 2008, a
n increase of
16 per cent compared to the same period in 2007
-
Net trading income
was
€69.4 million
for the nine months to 30 September 2008, down 17.7 per cent
or €14.9 million compared to the same period in 2007
HSBC Trinkaus
results in the first nine months of 2008 reflect the challenges of the global
economy in 2008, particularly in the third quarter. However, HSBC Trinkaus
benefitted from being part of the HSBC Group and saw customer deposits reach a
record level of €12 bill
ion, up some €2 billion in the
third
quarter.
Despite the
difficult trading conditions in the third quarter, net trading income
and
profit before tax
have continued to grow, albeit at a slower rate
.
Throughout the period, HSBC Trinkaus
consistently exceeded the minimum liquidity requirements demanded by the
banking supervisors
; HSBC Trinkaus
has not made use of the central bank's refinancing facility.
Operating profit of €133.6 million was 17.6 per cent lower than the record
€162.6 million recorded in the same period in 2007
.
The M
anagement Board believes that, g
iven the difficult market conditions, this represents a solid performance.
Net interest income increased by 16.0
per cent from €83.6 million to €
97.0 million.
This was primarily due to the increase in customer deposits referred
of €2 billion to over €12 billion
.
Net fee income was up 7.4
per cent
from €242.9 million to €260.9 million
.
Market volatility led to increased transaction volumes in the third quarter but
the overall number of transactions in the year will be
down on 2007
due to market declines around the globe. There has also been a
reduction
in demand for
structured products
and investment banking services.
The period under review includes, for the first time
,
net fee income generated by the fully consolidated
International Transaction Services GmbH (
"
ITS
"),
the securities settlement subsidiary acquired on 1 January 2008
.
Net trading i
ncome was down 17.7 per cent from €
84.3 million to €69.4 million, but
remained profitable even in
the third quarter. HSBC Trinkaus
saw
a substantial increase in income from equities a
nd equity derivatives trading. However, as
a large part of liquid Treasury investments are kept in bonds with a
mark-to-market valuation,
valuation losses occurred as a result of
spread
s
widening
.
The sales-trading bond positions were affected in the same way.
The equities and equity/index derivatives and the foreign exchange business
remained profitable. The bonds and intere
st
rate derivatives business recorded losses.
Net
loan impairment and other credit risk provisions
increased by
€1.7 million
compared with the
€3.7 million
credit reported in the same period in 2007
.
C
redit risk provisioning
remains
at the lower end of
expectations
and
HSBC Trinkaus remains
largely
unaffected by major defaults in
the lending business.
However a modest increase in provisioning levels reflected the changing
economic environment.
Total a
dministrative expenses were up 12.9
per cent
from €262.5 million to €296.4 million. Excluding ITS'
s
administrative expenses, included for the first time, the increase would
have been
three per cent
. The rise in costs was
attributable both to an
increase in the number of employees
and further investments in IT infrastructure. Performance
-based remuneration declined in line with the overall result. The introduction
of the
flat tax on capital income in
Germany
from 2009
will
have the effect of
put
ting
considerable pressure on administrative expenses this year.
Results by business segment
Despite the severe
turbulence in
global financial market
s
, the Corporate Banking and Institutional Clients segments again managed to
improve on the strong results recorded the previous year. The Private Banking
and Global Markets segments were not able to repeat their
2007 performances
,
however
, due to the unfavourable market conditions
.
The
Corporate Banking segment improved net fee income in the fixed income,
international and foreign exchange business
es
compared to the previous year.
This was driven by h
igher net interest income
accrued
as a result of
a
strong increase in sight deposits and lending volume
coinciding with
an increase in margins on deposits
.
Revenue growth in the Institutional Clients segment was particularly strong in
the fixed income and custody business.
Successful
Asset Management and fixed income business
in
the Private Banking segment
almost offset
the
decline
in transaction revenues in the securities business
as many investors
withdrew from the market.
The Global Markets segment was affected in particular by the unfavourable
global economic environment
and revenues
in the period were lower than those achieved in the previous
year
,
especially in respect of interest
rate
products.
However, the
Global Markets
segment did
report a
positive
result thanks to strict risk and limit discipline.
HSBC Trinkaus has
performed
well
during a
difficult period in both absolute terms and in relation to the
competition
as the bank remains profitable
.
The resilient business model operated by HSBC Trinkaus, a clear strategy
and the benefits of being part of the wider HSBC Group have
proved attractive to customers; although we have had to make further
provisions, the bank's sustained earning potential
in the long term remains unaffected
.
The global economic outlook remains uncertain but the Management Board will
continue to focus on serving the needs of the bank's customers and controlling
its costs to ensure HSBC Trinkaus
is well positioned for the future.
Media enquires to
Steffen Pörner, +49 211 910 1664
or at
steffen.poerner@hsbctrinkaus.de
HSBC Trinkaus is one of the leading private banks in
Germany
and part of the HSBC Group. With over 2
.200
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 €
23.8
billion and €
89.5
billion in funds under management and administration
at 30 September 2008,
the bank has a Fitch rating of
"
AA
", unchanged since December 2007
The Bank's central target groups are wealthy private clients,
corporate clients and institutional clients.
All HSBC Trinkaus press releases can be found in the "About us", "Press"
section of the website at www.hsbctrinkaus.de.
HSBC Holdings plc serves over 100
million customers worldwide through around
9,500
offices in 8
5
countries and territories in Europe, the Asia-Pacific region,
the
Americas
, the Middle East and
Africa
. With assets of some US$2,
547
billion at 3
0 June 2008
, HSBC is one of the world's largest banking and financial services
organisations. HSBC is marketed worldwide as 'the world's local bank'.
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.
By:
Name:
P A Stafford
Title:
Assistant Group Secretary
Date:
November 05, 2008