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 November, 2006
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 translation of a news release issued in
Germany by HSBC Holdings plc's subsidiary.
HSBC TRINKAUS & BURKHARDT
THIRD QUARTER 2006 RESULTS
-Operating profit up 57.2 per cent to EUR137.4 million in the first nine
months of 2006, matching the full year 2005 level.
-Profit after tax up 13.2 per cent to EUR90.0 million.
-Interest income increased by 20.9 per cent to EUR69.5 million during the
first nine months of 2006.
-Fees and commissions income grew by 8.9 per cent to EUR212.7 million.
- Return on equity before tax of 28.8 per cent during the first three
quarters, compared with 25.4 per cent for the same period last year.
-Cost:income ratio improved to 61.8 per cent during the first nine months
of 2006, compared with 63.7 per cent during the same period last year.
HSBC Trinkaus & Burkhardt AG showed a significant increase in operating profit,
growing by EUR50.0 million during the first nine months of 2006 and reaching
2005 full year operating profit levels. Growth in profit after tax was moderate
as there were no significant one-off effects in the first nine months of 2006,
compared to 2005. Profit after tax increased 13.2 per cent, to EUR90.0 million
from EUR79.5 million for the same period last year. Return on equity increased
to 28.8 per cent from 25.4 per cent in the corresponding period in 2005.
Trading and Institutional Customers divisions showed strong improvement. The
Institutional Customers division managed to further increase its revenues
compared to the previous year despite deteriorating market conditions during the
summer. The division contributed EUR45.0 million in operating profit, the
highest contribution of any segment. The strong contribution was primarily due
to the highly successful asset management business.
During the first nine months of the year, corporate and commercial banking and
private banking businesses were also able to significantly increase revenues.
The increase in trading revenues was particularly strong due to the firm growth
of the equities and equity derivatives business.
Components of operating profit reflected an overall positive performance during
the first three quarters of 2006. Interest income rose by 20.9 per cent to
EUR69.5 million during the nine month period.
Fee income, the most important performance indicator of the bank, showed an
increase of 8.9 per cent to EUR212.7 million. Fee income from foreign exchange
and derivatives increased significantly. Fee income from structuring and
issuance businesses also increased due to placement of a structured mezzanine
issue for medium-sized businesses (H.E.A.T Mezzanine 2006).
Trading profits recorded the biggest increase, growing by 69.8 per cent to
EUR81.0 million from EUR47.7 million in the corresponding period last year. The
highest share of trading profits came from equities and equity/index derivatives
activities, contributing EUR62.4 million, largely driven by the HSBC Trinkaus
Investment Products proposition. Interest trading was able to increase profits
by 58.8 per cent to EUR12.7 million during the first nine months of 2006.
Higher provisions for performance-related remuneration, increased costs for
information technology and higher staff expenses due to increased staff levels
led to an increase in administrative expenses of 7.8 per cent to EUR229.5
million. The strong increase in revenues contributed to an improved cost:income
ratio of 61.8 per cent during the first three quarters of 2006, from 63.7 per
cent for the same period in 2005.
The management board does not expect fourth quarter results to benefit from
extraordinary gains from disposals as it had in 2005. However, it does expect
operating profit for the full year to increase significantly based on continued
stable revenues. Since the change in HSBC Trinkaus & Burkhardt's legal structure
to a stock corporation in July 2006, the board has intensified its successful
strategy of combining the strengths of the customer-oriented private bank with
the HSBC Group's network and product capabilities.
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: 09 November, 2006