Interim Results ending Q3

Key highlights include

• Q3 2008 pre-tax profit ahead of Q3 2007. Asia remained at the heart of core operating profitability of the Group in the quarter and retail businesses in Europe remained robust. Core operating profitability was also significantly augmented by a number of individually significant items
• We continue to generate capital during Q3 2008 from operating activities as well as from the sale of the French regional banks, with the result that at 30 September 2008, the tier 1 capital ratio stood at 8.9 per cent, towards the top of our current target range
• Underlying pre-tax profit in Asia, Latin America and Europe for the nine months ended 30 September 2008 was ahead of the comparable period in 2007 and was strongly capital generative
• The emerging markets businesses within Global Banking and Markets continue to perform strongly

“HSBC still deserves its most-favored status. The Bank's key capital and liquidity strengths are still there.” - Breaking News.com

“HSBC "boosted its finances, maintained its dividend and declared only a small dip in profits after successfully navigating the dramatic events of the past month that saw all its UK rivals survive only with a GB£37 billion (US$57.5 billion) bail-out” - The Guardian

“The Bank's third-quarter profit was higher this year than it was a year earlier because of strong growth in Asia and asset sales, which offset the declining US performance” – The Washington Post

“HSBC stock "has still been one of the most resilient performers during the credit crisis” – Market Watch

“HSBC has "stood apart" from the rest of the banking system to date. It added that the Bank has not needed the US$700 billion US troubled asset fund and is a provider of liquidity to the UK markets, having attracted deposits due to its perceived strength. The Telegraph also pointed out that HSBC's capital ratio remains "among the strongest" in the industry” – The Telegraph

“Bank's strategy gave it the edge over its rivals. HSBC takes in more money in deposits than it lends to customers, enabling it to avoid the funding shortage that has required RBS, HBOS and Lloyds TSB to sell as much as £37 billion, or US$59 billion, of stock to the British government to increase capital” – International Herald Tribune

“Bank's shares fell less than 1.5 per cent on a bad day for banking shares. The newspaper quoted Collins Stewart analyst Alex Potter as saying that the news on impairments and Asian slowdown are already factored into thinking on HSBC. Its capital strength, funding advantage and diversity means it remains our favored bank in a weak sector," Potter added. – The Independent

“The Group's shares looked strong relative to the sector. Its shares have fallen by 11 per cent this year, versus an average 70 per cent fall for UK-listed peers. Credit default swap prices have barely broken a sweat; HSBC currently trades only a few dozen basis points wider than the UK itself. Last month's US$600 million acquisition, even if at a heady four times book value, of Indonesia's Bank Ekonomi is why investors buy and hold the shares. That, and HSBC's quaint habit of taking in more money than it lends” – The Financial Times