8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report: November 13, 2006

Commission file number 1-7436

HSBC USA INC.

(Exact name of registrant as specified in its charter)

Maryland	13-2764867
(State of incorporation)	(IRS Employer Identification Number)
452 Fifth Avenue, New York, New York	10018
(Address of principal executive offices)	(Zip Code)

(212) 525-3735

Registrant’s telephone number, including area code

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 7.01. Regulation FD Disclosure
	Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits
Financial Supplement

Item 7.01. Regulation FD Disclosure

Financial supplement pertaining to the financial results of HSBC Finance Corporation and HSBC USA Inc. for the three and nine months ended September 30, 2006. The information included in the financial supplement with respect to HSBC Finance Corporation and HSBC USA Inc. on a combined basis is presented on an International Financial Reporting Standards (“IFRSs”) basis as applied by HSBC Holdings plc. Additional detail regarding significant accounting policies is available in the HSBC Holdings plc 2005 Annual Report. The information included in the financial supplement with respect to HSBC Finance Corporation is presented on a management basis and an IFRS management basis. As presented in this Form 8-K, IFRS basis is a non-GAAP financial measure that represents U.S. GAAP as adjusted in accordance with IFRSs. Management basis is a non-GAAP financial measure derived from U.S. GAAP reported results that eliminates, among other things, mortgage and private label receivable transfers to HSBC Bank USA, N.A., an affiliate of HSBC Finance Corporation and related intercompany activities and assumes that securitized receivables have not been sold and remain on the balance sheet of HSBC Finance Corporation. IFRS management basis is a non-GAAP financial measure that represents management basis as adjusted in accordance with IFRSs.

This information shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise incorporated by reference into any filing pursuant to the Securities Act of 1933, as amended, or the Exchange Act except as otherwise expressly stated in such a filing.

Item 9.01. Financial Statements, Pro Forma Financial Information and Exhibits

(a)  Financial Statements of Businesses Acquired.

Not applicable.

(b)  Pro Forma Financial Information.

Not applicable.

(c)  Shell Company Transactions

Not applicable.

(d)  Exhibits.

No.		Exhibit
	99		Financial supplement	.

Signature

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

HSBC USA INC.
(Registrant)

By:  /s/  Clive Bucknall

Clive Bucknall

Executive Vice President, Controller

Dated: November 13, 2006

EX-99

Exhibit 99

HSBC Finance Corporation

and

HSBC USA Inc.

Supplement to the Forms 10-Q for the

period ended September 30, 2006

Forward Looking Statements

This document, and subsequent discussion, contains certain forward-looking information with respect to the financial condition, results of operations and business of HSBC Holdings plc, HSBC Finance Corporation, HSBC USA Inc. and HSBC North America Holdings Inc. This information represents expectations or beliefs concerning future events and is subject to unknown risks and uncertainties. This information speaks only as of the date on which it is provided. Additional detailed information concerning important factors that could cause actual results to differ materially is available in the HSBC Holdings plc 2005 Annual Report for the year ended December 31, 2005, and the HSBC Finance Corporation and HSBC USA Inc. Annual Reports on Forms 10-K for the year ended December 31, 2005 and Quarterly Reports on Forms 10-Q for the quarter ended March 31, 2006.

2  

Basis of Reporting⁽¹⁾

•  International Financial Reporting Standards (“IFRSs”) From January 1, 2005, HSBC Holdings plc (“HSBC”) has prepared its consolidated financial statements in accordance with International Financial Reporting Standards as endorsed by the European Union. IFRSs comprise accounting standards issued by the International Accounting Standards Board and its predecessor body as well as interpretations issued by the International Financial Reporting Interpretations Committee and its predecessor body. Please see HSBC’s 2005 Annual Report for more detail regarding significant accounting policies.

•  HSBC Finance Corporation — Managed Basis (a non-GAAP financial measure) assumes that securitized customer loans have not been sold and remain on the balance sheet.

•  HSBC Finance Corporation — Management Basis In addition to managed basis reporting, operations are monitored and trends are evaluated on a management basis (a non-GAAP financial measure). Management basis reporting, in addition to the managed basis adjustments, assumes that the mortgages and private label customer loans transferred to HSBC’s U.S. banking subsidiary, HSBC Bank USA, N.A. (“HSBC Bank USA”), have not been sold and remain on the balance sheet. Additionally, operations are monitored and trends are evaluated on a management basis because the customer loan sales to HSBC Bank USA were conducted primarily to more appropriately fund prime customer loans within the HSBC Group and such customer loans continue to be managed and serviced without regard to ownership. Furthermore, operating results are reviewed and decisions are made about allocating certain resources such as employees on a management basis.

When reporting on a management basis, net interest income, fee income and loan impairment charges are adjusted to include the activity associated with these customer loans transferred to HSBC Bank USA. Gains on sales, loan premium amortization and the related servicing fees are eliminated. Management believes that management basis information enables readers, investors and other interested parties to better understand the overall performance and related trends of the consumer finance business.

•  HSBC Finance Corporation — IFRS Management Basis (a non-GAAP financial measure) represents management basis results adjusted in accordance with IFRSs. In this document, the term “customer loans” is synonymous to “receivables” in the U.S. GAAP financial statements.

•  HSBC USA Inc. — IFRS represents U.S. GAAP results adjusted in accordance with IFRSs.

⁽¹⁾ Certain adjustments have been made to prior period amounts to conform to the current period presentation

3  

HSBC Finance Corporation and HSBC USA Inc.

Profit Before Tax – IFRS (A Non-GAAP Measure)

	Nine Months Ended September 30,
	2006		2005
	(millions $)
Profit Before Tax:
HSBC Finance Corporation	$	3,220	$	2,707
HSBC USA Inc.		1,221		1,194
Sub-total		4,441		3,901
Intercompany Eliminations(1)		108		385
Combined Profit Before Tax	$	4,549	$	4,286

	Three Months Ended
	September 30,			June 30,		September 30,
	2006			2006		2005
	(millions $)
Profit Before Tax:
HSBC Finance Corporation	$	631		$	1,151	$	603
HSBC USA Inc.		342			463		385
Sub-total		973			1,614		988
Intercompany Eliminations(1)		(37	)		49		120
Combined Profit Before Tax	$	936		$	1,663	$	1,108

⁽¹⁾ Primarily relates to intercompany derivatives accounting and premium amortization on the transfer of assets between HSBC Finance Corporation and HSBC USA Inc.

4  

HSBC Finance Corporation

HSBC Finance Corporation – September 30, 2006 Highlights

IFRS Management Basis (A Non-GAAP Measure)

•  Third quarter’s Profit Before Tax increased 6% over the year-ago period but decreased 43% from prior quarter. Underlying Profit Before Tax (which excludes derivative and fair value impacts and the adjustments for the calculation of effective interest rate (EIR) on credit card balances with low introductory rates) increased 21% year-over-year but declined 26% from the prior quarter.

•  Year-to-date Profit Before Tax increased 19% from the same period in 2005. Underlying Profit Before Tax was up 30%.

•  Third quarter’s Profit Before Tax reflects strong year-over-year profit growth in our Retail Branch Channel⁽¹⁾ and Credit Card businesses. Growth was primarily driven by:

–   Higher yields due to repricing initiatives

–   Higher fee income primarily from the Metris portfolio

–   Metris portfolio, acquired in the fourth quarter 2005, performing better than expected

–   Lower loan impairment charges due to incremental charges recorded last year for both Hurricane Katrina (Katrina) and changes in the U.S. bankruptcy legislation

•  Favorable Profit Before Tax was partially offset by higher operating expenses to support receivable growth, lower other income including fair value impacts, and higher loan impairment charges

•  Net Interest Income increased 6% year-over-year but decreased 6% from the prior quarter. Underlying Net Interest Income increased 6% year-over-year but was broadly flat to the prior quarter.

–   Net interest margin (NIM) compression is consistent with a generally rising rate environment, the effects of which are partially offset by increased yields resulting from a continuation of our repricing efforts

–   Average Customer Loans grew 17% year-over-year due to the Metris acquisition as well as organic growth across all products. Annualized average growth of 12% from the prior quarter was driven by growth in our branch residential mortgages and our MasterCard/Visa⁽²⁾ credit card portfolios

–   Our Correspondent/Wholesale Channel⁽³⁾ portfolio loan growth was held flat to prior quarter

⁽¹⁾ Retail Branch Channel represents our U.S. branch based consumer lending business which primarily offers secured and unsecured loan products, such as first and second lien position residential mortgages and personal non-credit cards

⁽²⁾ MasterCard is a registered trademark of MasterCard International, Incorporated and Visa is a registered trademark of VISA USA, Inc.

⁽³⁾ Correspondent/Wholesale Channel represents our mortgage services business which purchases first and second lien position residential mortgages from a network of unaffiliated third party lenders (i.e. correspondents)

6  

HSBC Finance Corporation – September 30, 2006 Highlights – continued

IFRS Management Basis (A Non-GAAP Measure)

•  Fee Income increased 21% over the year-ago period and 8% from prior quarter as a result of higher volumes in our MasterCard/Visa portfolios which include Metris

•  In the third quarter, derivative and fair value income declined largely due to the impact of tightened credit spreads on the application of the fair value option to our own debt

•  Loan Impairment Charges decreased 4% year-over-year but increased 16% from the second quarter

–   The year-ago quarter included charges for estimated incremental exposure associated with both Katrina and changes in U.S. bankruptcy legislation

–   Our Correspondent/Wholesale Channel portfolio, as expected, experienced higher delinquency and net charge-offs during the third quarter 2006 in certain portions of the portfolio acquired in 2005 and 2006, particularly in the second lien and portions of the first lien portfolios. As a result, this portfolio has experienced higher loss estimates year-over-year although third quarter loan impairment charges were flat to the prior quarter. Numerous mitigation efforts are underway.

–   In our other portfolios, third quarter 2006 experienced higher loan impairment charges from the prior quarter due to seasoning of the portfolio which experienced strong growth in 2005 as well as normal seasonal impacts within certain portfolios

–   Credit performance, as measured by 2+ delinquency and net charge-offs, in most other portions of our domestic portfolio, including branch residential mortgages, is consistent with 2005 levels

•  We continue to monitor credit closely; we believe that the recent abnormally favorable credit performance is returning to a more normalized level

•  Operating Expenses increased 17% year-over-year and were in line with the prior quarter

–   Year-over-year higher expenses to support loan growth including the acquisition of the Metris portfolio in the fourth quarter 2005

–   Operating expenses as a percentage of average customer loans were flat year-over-year but down against the prior quarter

•  In October 2006, we entered into an agreement to sell our entire interest in Kanbay International, Inc. to a third party. The transaction is expected to close in the fourth quarter of 2006 and will result in a pre-tax gain on sale of approximately $123 million.

7  

HSBC Finance Corporation

IFRS Management Basis (A Non-GAAP Measure)

	Three Months Ended
	September 30,			June 30,			September 30,
	2006			2006			2005
	(millions $)
Net Interest Income	$	2,872		$	3,051		$	2,708
Net Fee Income		713			658			588
Trading Income/(Expense):
Loans Held for Resale		95			157			40
Hedge Ineffectiveness and Mark-to-market on Non-qualifying Hedges		(47	)		(20	)		(74	)
Total Trading Income/(Expense)		48			137			(34	)
Net (Expense)/Income from Financial Instruments Designated at Fair Value(1)		(53	)		33			67
Other Operating Income		178			193			240
Total Operating Income		3,758			4,072			3,569
Loan Impairment Charges and Other Credit Risk Provisions		1,597			1,374			1,430
Loan Impairment (Releases)/Charges, Katrina related		(33	)		(28	)		205
Operating Expenses		1,488			1,483			1,270
Profit Before Tax		706			1,243			664
Tax Expense		264			467			235
Profit for the Period	$	442		$	776		$	429
Adjustments, net of Tax Expense:
Effective Interest Rate impact		—			(91	)		—
Katrina impact		(21	)		(18	)		138
Adjusted Profit for the Period	$	421		$	667		$	567
Cost Efficiency Ratio		39.6	%		36.4	%		35.6	%
Operating Expenses/Average Customer Loans		3.4	%		3.5	%		3.4	%

⁽¹⁾ Includes gains and losses from changes in fair value of debt securities in issue designated at fair value and gains and losses from changes in fair value of derivatives that are managed in conjunction with them of $(56), $28 and $67 million for the three months ended September 30, 2006, June 30, 2006 and September 30, 2005, respectively. September 2006 and June 2006 also include $3 and $5 million, respectively, of income from assets held to meet liabilities under insurance contracts.

8  

HSBC Finance Corporation

IFRS Management Basis (A Non-GAAP Measure)

	Nine Months Ended
	September 30,
	2006			2005
	(millions $)
Net Interest Income	$	8,796		$	7,995
Net Fee Income		2,147			1,751
Trading Income:
Loans Held for Resale		304			163
Hedge Ineffectiveness and Mark-to-market on Non-qualifying Hedges		(53	)		(21	)
Total Trading Income		251			142
Net (Expense)/Income from Financial Instruments Designated at Fair Value(1)		(25	)		332
Other Operating Income		559			576
Total Operating Income		11,728			10,796
Loan Impairment Charges and Other Credit Risk Provisions		3,908			3,751
Loan Impairment (Releases)/Charges, Katrina related		(94	)		205
Operating Expenses		4,407			3,881
Profit Before Tax		3,507			2,959
Tax Expense		1,277			998
Profit for the Period	$	2,230		$	1,961
Adjustments, net of Tax Expense:
Effective Interest Rate impact		(91	)		—
Katrina impact		(59	)		138
Adjusted Profit for the Period	$	2,080		$	2,099
Cost Efficiency Ratio		37.6	%		36.0	%
Operating Expenses/Average Customer Loans		3.4	%		3.6	%

⁽¹⁾ Includes gains and losses from changes in fair value of debt securities in issue designated at fair value and gains and losses from changes in fair value of derivatives that are managed in conjunction with them of $(33) and $332 million for the nine months ended September 30, 2006, and September 30, 2005, respectively. September 2006 also includes $8 million of income from assets held to meet liabilities under insurance contracts.

9  

HSBC Finance Corporation

Key Ratios – Management Basis (A Non-GAAP Measure)⁽¹⁾

•  NIM declined from the prior year and the prior quarter

–  Margin pressure continued due to higher cost of funds consistent with a generally rising rate environment and a higher proportion of lower yielding residential mortgage loans

–  Yields increased due to repricing efforts and the Metris portfolio

•  Risk Adjusted Revenue (RAR) down from the prior year and the prior quarter

–  Lower NIM than the prior year coupled with 2005 gains from loan and investment property sales were partially offset by lower net charge-offs

–  The decline in RAR compared to the prior quarter was due to lower NIM and higher net charge-offs partially offset by increased fees

•  Return on Managed Assets (ROMA) was improved from the prior year but down from the prior quarter

–  Compared to the prior year, expense growth was lower than receivable growth. Improved efficiency and lower loan impairment charges were partially offset by lower NIM.

–  Compared to the prior quarter, lower NIM and higher loan impairment charges were partially offset by higher fee income

(1)	Derived from U.S. GAAP reported results and adjusted to management basis as further described on page 3
(2)	Excludes mark-to-market on derivatives which do not qualify as effective hedges and ineffectiveness associated with qualifying hedges under SFAS No. 133

10  

HSBC Finance Corporation

Credit Quality – Management Basis (A Non-GAAP Measure)⁽¹⁾

•  RAR down from the prior year and the prior quarter

–  Lower NIM than the prior year coupled with 2005 gains from loan and investment property sales were partially offset by lower net charge-offs

–  The decline in RAR compared to the prior quarter was due to lower NIM and higher net charge-offs partially offset by increased fees

•  2+ Delinquency up from the prior year and the prior quarter

–  Compared to the prior year, the increase was due to deterioration in the Correspondent/Wholesale Channel and the addition of the Metris portfolio

–  Compared to the prior quarter, the increase was largely due to the Correspondent/Wholesale Channel, expected seasonality in the credit card and motor vehicle finance portfolios as well as seasoning in the unsecured personal lending portfolio

•  Charge-off ratio decreased from the prior year but increased modestly from the prior quarter

–  Decrease from the prior year was largely due to lower personal bankruptcy charge-offs and filings following the U.S. bankruptcy legislation enacted in 2005. This was partially offset by higher net charge-offs due to seasoning in the Correspondent/Wholesale Channel portfolio which has seen significant growth in the period up to June 30, 2006 as well as higher losses in a portion of that business.

–  Increase from the prior quarter was primarily from a seasonal increase in the motor vehicle finance portfolio, expected seasoning of the overall portfolio and higher net charge-offs in certain segments of the Correspondent/Wholesale Channel portfolio

(1)	Derived from U.S. GAAP reported results and adjusted to management basis as further described on page 3
(2)	Excludes mark-to-market on derivatives which do not qualify as effective hedges and ineffectiveness associated with qualifying hedges under SFAS No. 133

11  

HSBC Finance Corporation

IFRS Management Basis (A Non-GAAP Measure)

CUSTOMER LOANS

											Sep 06
											Increase/(Decrease)
											%
	Sep 06		June 06		Mar 06		Dec 05		Sep 05		June 06			Mar 06			Dec 05			Sep 05
	(millions $)
Branch Real Estate Secured	$	46,157	$	44,430	$	43,062	$	41,341	$	40,345		4	%		7	%		12	%		14	%
Correspondent Real Estate Secured		51,543		51,446		49,330		44,297		41,239		0			4			16			25
Real Estate Secured(1)		97,700		95,876		92,392		85,638		81,584		2			6			14			20
MasterCard/Visa Credit Cards		26,318		25,676		24,740		25,819		22,605		3			6			2			16
Private Label Cards		19,330		19,057		18,402		19,656		18,706		1			5			(2	)		3
Motor Vehicle Finance		12,663		12,417		12,113		11,911		11,628		2			5			6			9
Unsecured Personal Lending and Other		21,487		21,313		20,875		20,778		20,302		1			3			3			6
Total Customer Loans	$	177,498	$	174,339	$	168,522	$	163,802	$	154,825		2	%		5	%		8	%		15	%

⁽¹⁾ Real Estate Secured includes residential first mortgages (first lien) and second lien lending products

12     

HSBC Finance Corporation

IFRS Management Basis (A Non-GAAP Measure)

CORRESPONDENT REAL ESTATE SECURED LOANS BY LIEN POSITION

											Sep 06
											Increase/(Decrease)
											%
	Sep 06		June 06		Mar 06		Dec 05		Sep 05		June 06			Mar 06			Dec 05			Sep 05
	(millions $)
Residential First Mortgages	$	40,428	$	40,125	$	39,094	$	36,276	$	34,942		1	%		3	%		11	%		16	%
Second Lien		11,115		11,321		10,236		8,021		6,297		(2	)		9			39			77
Total Loans by Lien Position	$	51,543	$	51,446	$	49,330	$	44,297	$	41,239		0	%		4	%		16	%		25	%

COMPOSITION OF CORRESPONDENT REAL ESTATE SECURED LOAN PORTFOLIO AT SEPTEMBER 30, 2006 BY PERIOD OF PURCHASE

	Q3 06			H1 06			H2 05			H1 05			2004 and Prior			Total
Residential First Mortgages		6	%		17	%		26	%		13	%		38	%		100	%
Second Lien		4			32			39			14			11			100
Total Loans by Period of Purchase		6	%		20	%		29	%		13	%		32	%		100	%

13     

HSBC Finance Corporation

September 30, 2006 – Business Unit Highlights

Retail Branch Channel (HFC/Beneficial)

Correspondent/ Wholesale Channel

• Strong year-over-year profit growth • Continued good loan growth   – Branch residential mortgage products up      14% year-over-year       о Includes both near-prime and non-prime         segments       о Strong originations driven by increased         productivity       о Lower liquidation   – Unsecured products were up year-over-year      driven by successful direct mail campaigns and      upsell efforts • Cross sell volume continues to expand   – Motor vehicle finance loans and credit card sales in      branch offices contributed to overall growth • Credit performance, as measured by 2+ delinquency and    net charge-offs, is consistent with 2005 levels • In October 2006, acquired Solstice Capital Group, a   direct mortgage lender, providing central channel with   additional origination capability

• Profits down year-over-year reflecting deterioration in    certain portions of the portfolio • Continued deterioration in selected portions of the    2005 and 2006 purchases, similar to industry    performance. Risk mitigation programs and efforts are    underway including:   – Enhanced segmentation   – Enhanced pricing models and repricing initiatives   – Proactively working with customers regarding      adjustable rate mortgage (ARM) resets   – Increased collection capacity   – Tightening of credit criteria, especially in      second lien, low documentation, lower debt service      capacity and lower credit scoring segments • Portfolio up 25% year-over-year but flat to prior   quarter   – Growth has slowed due to a strategic decision to      tighten underwriting criteria and is also reflective of      a slowdown in market originations   – As a result of these actions, second lien and low      documentation volumes have been reduced      significantly. First lien loan purchases have also      been reduced significantly.

14  

HSBC Finance Corporation

September 30, 2006 – Business Unit Highlights

	Credit Card		Private Label
•	Strong year-over-year profit growth with good organic loan and operating income growth	•	Profits broadly flat year-over-year because of the start up costs of the co-brand program
•	Increased net interest margin year-over-year through repricing initiatives and growing non-prime book	•	Launched two merchants (Best Buy and Saks Fifth Avenue) to the co-brand program with MasterCard/Visa in the third quarter
•	Loan impairment charges are down year-over-year driven by lower bankruptcy charge-offs and filings	•	Improved net charge-offs year-over-year driven by lower bankruptcy charge-offs and filings
•	Metris integration substantially complete and performing better than expected	•	Changes in minimum monthly payment guidelines have had an immaterial impact
•	Changes in minimum monthly payment guidelines have resulted in lower credit card fees primarily in the non-prime portfolio

15  

HSBC Finance Corporation

September 30, 2006 – Business Unit Highlights

Auto

International

• Profits broadly flat year-over-year as higher loan    volumes were offset by higher cost of funds • Good organic loan growth in our dealer network   and consumer direct channel    – Increased focus on strengthening       relationships with active dealers    – Focus on refinance volume through       improved pricing and additional operational       capacity • Active portfolio management is yielding higher    fee income • Continue to optimize collection strategies to    improve cash collections • Improved credit performance, as measured by 2+   delinquency and net charge-offs,   year-over-year

Canada • Solid year-over-year profit growth • Good loan growth and profitability in a strong    Canadian economy    – Branch expansion, investment in external lead       campaigns and strong real estate market       contributed to growth in the unsecured and real       estate secured portfolios    – Growth initiatives in motor vehicle, credit        cards and residential mortgages contributed        favorably to customer loan growth • Credit performance, as defined by 2+ delinquency    and net charge-offs, is stable U.K.   • Profit growth hindered by the continued   challenging credit and business environment • A focus on secured lending has resulted in   ongoing higher levels of sales in the branch   network in the third quarter • Significant initiatives have been enacted to    improve the cost basis including the continued   centralization of operations and collections • In the third quarter, we agreed to sell a portion   of our European Operations to an HSBC affiliate

16  

HSBC USA Inc.

HSBC USA Inc. – September 30, 2006 Highlights

IFRS (A Non-GAAP Measure)

•  Third quarter’s Profit Before Tax decreased 11% over the year-ago period and decreased 26% from prior quarter. Underlying Profit Before Tax (which excludes derivative and fair value impacts) decreased 1% and 3%, respectively.

•  Year-to-date Profit Before Tax increased 2% from the same period in 2005. Underlying Profit Before Tax was up 5%.

•  Third quarter’s Profit Before Tax reflects volatility within Corporate, Investment Banking and Markets (CIBM) due to the challenging interest rate environment affecting banks in general and weak U.S. Global Markets trading volumes in the third quarter

–   Balance sheet management income was lower due to a flat to inverted yield curve that has persisted throughout 2006

–   Year-to-date trading income increased 115% and reflects the build-out of client facing Global Markets businesses

–   Trading income decreased 17% from the prior quarter due to declines in client activity in the U.S. Mortgage Backed Securities business and reduced volatility in the Precious Metals business; however, year-to-date contribution improved significantly in both businesses

–   Global Transaction Banking operating income continued to improve compared to both prior year-to-date and the prior quarter

•  Good progress made on strategic initiatives within Personal Financial Services and Commercial Banking

–   Domestic deposits grew 15% year-over-year and reflect the successful nationwide online savings product, branch expansion in new geographic markets and refined marketing and customer analytics for affluent customers

–   Small Business and Middle Market lending activities contributed to 17% year-over-year commercial loan growth

18  

HSBC USA Inc. – September 30, 2006 Highlights (continued)

IFRS (A Non-GAAP Measure)

•  Year-to-date Total Operating Income increased 10% but third quarter decreased 7% from the prior quarter

–   Benefited from the value of growing core customer deposit base and loans in Personal Financial Services, Commercial Banking and Private Banking customer segments

–   Growth in private label receivable balances and lower portfolio purchase premium amortizations contributed to good growth in income compared to both prior year-to-date and prior quarter

–   In the third quarter 2006, derivative income declined largely due to the impact of tightened credit spreads on the application of the fair value option to our own debt

•  Overall credit performance generally sound but increases noted compared to a very benign credit environment in 2005

–   Adjusted for Katrina impact in third quarter 2005, Consumer Finance loan impairment charges increased on higher loan volumes

–   Year-to-date increases in loan impairment charges in Commercial Banking reflects portfolio growth

–   Negligible loan impairment charges in Corporate Banking compared to higher than normal recoveries in 2005

•  Increased Operating Expenses reflect continuing spend on investment initiatives

–   Expansion of retail distribution network including addition of branches and national lending locations coupled with the online savings product

–   Advertising and brand building at NYC airports (JFK and LaGuardia)

–   Build-out of CIBM client facing business platform is largely complete but impacts year-to-date comparisons

19  

HSBC USA Inc.

IFRS (A Non-GAAP Measure)

	Three Months Ended
	September 30,			June 30,			September 30,
	2006			2006			2005
	(millions $)
Net Interest Income	$	626		$	617		$	666
Net Fee Income		207			231			246
Trading Income(1)		309			374			187
Net (Expense)/Income from Financial Instruments Designated at Fair Value(2)		(55	)		52			(17	)
Other Operating Income		155			63			97
Total Operating Income		1,242			1,337			1,179
Loan Impairment Charges and Other Credit Risk Provisions		216			205			186
Loan Impairment (Releases)/Charges, Katrina related		(1	)		(2	)		26
Operating Expenses		685			671			582
Profit Before Tax		342			463			385
Tax Expense		111			170			140
Profit for the Period	$	231		$	293		$	245
Cost Efficiency Ratio		55.2	%		50.2	%		49.4	%

(1)	Includes hedge ineffectiveness and mark-to-market on non-qualifying hedges of $1, $(13) and $1 million for the three months ended September 30, 2006, June 30, 2006 and September 30, 2005, respectively
(2)	Includes gains and losses from changes in fair value of debt securities in issue designated at fair value and gains and losses from changes in fair value of derivatives that are managed in conjunction with them

20  

HSBC USA Inc.

IFRS (A Non-GAAP Measure)

	Nine Months Ended
	September 30,
	2006			2005
	(millions $)
Net Interest Income	$	1,821		$	2,107
Net Fee Income		668			563
Trading Income(1)		1,041			485
Net Expense from Financial Instruments Designated at Fair Value(2)		(43	)		(15	)
Other Operating Income		340			327
Total Operating Income		3,827			3,467
Loan Impairment Charges and Other Credit Risk Provisions		590			497
Loan Impairment (Releases)/Charges, Katrina related		(4	)		26
Operating Expenses		2,020			1,750
Profit Before Tax		1,221			1,194
Tax Expense		410			441
Profit for the Period	$	811		$	753
Cost Efficiency Ratio		52.8	%		50.5	%

(1)	Includes hedge ineffectiveness and mark-to-market on non-qualifying hedges of $(6) and $3 million for the nine months ended September 30, 2006 and September 30, 2005, respectively
(2)	Includes gains and losses from changes in fair value of debt securities in issue designated at fair value and gains and losses from changes in fair value of derivatives that are managed in conjunction with them

21  

HSBC USA Inc.

September 30, 2006 – Business Unit Highlights

Personal Financial Services (PFS)

Commercial Banking (CMB)

• Good progress on numerous initiatives to   broaden distribution channels   – Online savings deposits totaled $6.3 billion      at September 30, 2006 and generated over      250,000 new accounts   – Added 5 new branches during the quarter      and established a national charter in      Maryland to facilitate geographic expansion   – Continued solid growth in Premier      relationships with over 100,000 households      and $12 billion in deposits   – “Different Points of View” global branding      initiative expanded to include new      advertising campaign at JFK and LaGuardia      airports • Measurable improvement in customer experience   and service differentiation as measured both   externally and internally

• Solid year-over-year deposit and loan growth   contributed to a 14% net interest income   year-to-date improvement • Expanded beyond geographic footprint with    increased national distribution in Washington,    Los Angeles, New Jersey and Chicago • Increased syndication capabilities led to higher    fee income in Commercial Real Estate • Credit performance remains stable and we    continue to closely monitor credit environment   – Higher Middle Market and Small Business      impairment charges were consistent with      year-over-year loan growth and the      expected seasoning of the portfolio

22  

HSBC USA Inc.

September 30, 2006 – Business Unit Highlights

Private Banking (PB)

Corporate, Investment Banking and Markets (CIBM)

• Significant operating income growth from the prior quarter was due in part to the gain on sale of a foreign private equity investment • Continued solid year-over-year loan and deposit growth resulted in an 15% improvement in net interest income year-to-date • Opened three Wealth and Tax Advisory offices in 2006 to service high net worth individuals which contributed to a 64% year-to-date increase in fee income

• Significantly higher year-to-date Trading Income in all Global Markets businesses offset lower balance sheet management Net Interest Income • Trading Income declined from second Quarter primarily in U.S. based Mortgage Backed Securities and Precious Metals businesses • Strong year-to-date Operating Income and deposit balance growth in Global Transaction Banking reflecting expanded product offerings and successful growth in new markets    – Reflects HSBC’s market leader position in       developing cross border payments and       cash management services    – Banknotes experienced its most       profitable quarter of 2006 with solid       performance across all regions

23  

Appendix

RECONCILIATIONS TO GAAP FINANCIAL MEASURES

HSBC Finance Corporation

IFRS

	Three Months Ended									Nine Months Ended
	September 30,			June 30,			September 30,			September 30,			September 30,
	2006			2006			2005			2006			2005
	(dollars are in millions)
Profit before tax — U.S. GAAP basis	$	878		$	897		$	421		$	3,174		$	2,074
Adjustments, before tax:
Securitization		3			21			209			57			471
Derivatives and hedge accounting (including fair value adjustments)		(234	)		(31	)		60			(377	)		75
Intangible assets		40			40			73			138			227
Purchase accounting adjustments		(39	)		16			(137	)		46			(86	)
Loan origination		(18	)		(2	)		(19	)		(51	)		(71	)
Loan impairment		16			17			(11	)		46			—
Loans held for resale		—			28			—			28			—
Interest recognition		(19	)		160			—			142			—
Other		4			5			7			17			17
Profit before tax — IFRS basis	$	631		$	1,151		$	603		$	3,220		$	2,707

1     

RECONCILIATIONS TO GAAP FINANCIAL MEASURES

HSBC Finance Corporation Income Statement

IFRS Management Basis

	Three Months Ended 09/30/06									Three Months Ended 06/30/06									Three Months Ended 09/30/05
				IFRS									IFRS									IFRS
				Management			IFRS						Management			IFRS						Management			IFRS
	Owned			Basis			Management			Owned			Basis			Management			Owned			Basis			Management
	Basis			Adjustments			Basis			Basis			Adjustments			Basis			Basis			Adjustments			Basis
	(dollars are in millions)
Net interest income	$	2,602		$	270		$	2,872		$	2,549		$	502		$	3,051		$	2,163		$	545		$	2,708
Net fee income		559			154			713			442			216			658			439			149			588
Trading income/(expense):
Loans held for resale		—			95			95			—			157			157			—			40			40
Hedge ineffectiveness and mark-to-market on non-qualifying hedges		—			(47	)		(47	)		—			(20	)		(20	)		—			(74	)		(74	)
Total trading income/(expense)		—			48			48			—			137			137			—			(34	)		(34	)
Net (expense)/income from financial instruments designated at fair value		—			(53	)		(53	)		—			33			33			—			67			67
Other operating income		806			(628	)		178			757			(564	)		193			708			(468	)		240
Total operating income		3,967			(209	)		3,758			3,748			324			4,072			3,310			259			3,569
Loan impairment charges and other credit risk provisions		1,419			178			1,597			1,273			101			1,374			1,181			249			1,430
Loan impairment (releases)/charges, Katrina related		(35	)		2			(33	)		(25	)		(3	)		(28	)		180			25			205
Operating expenses		1,705			(217	)		1,488			1,603			(120	)		1,483			1,528			(258	)		1,270
Profit before tax		878			(172	)		706			897			346			1,243			421			243			664
Tax expense		327			(63	)		264			329			138			467			140			95			235
Profit for the period	$	551		$	(109	)	$	442		$	568		$	208		$	776		$	281		$	148		$	429
Adjustments, net of tax expense:
Effective interest rate impact		—			—			—			—			(91	)		(91	)		—			—			—
Katrina impact		—			(21	)		(21	)		—			(18	)		(18	)		—			138			138
Adjusted profit for the period	$	551		$	(130	)	$	421		$	568		$	99		$	667		$	281		$	286		$	567
Cost Efficiency Ratio:
Total operating expenses	$	1,705		$	(217	)	$	1,488		$	1,603		$	(120	)	$	1,483		$	1,528		$	(258	)	$	1,270
Policyholders’ benefits		(123	)		123			—			(107	)		107			—			(109	)		109			—
Total operating expenses, excluding policyholders’ benefits	$	1,582		$	(94	)	$	1,488		$	1,496		$	(13	)	$	1,483		$	1,419		$	(149	)	$	1,270
Net interest income and other operating income	$	3,967		$	(209	)	$	3,758		$	3,748		$	324		$	4,072		$	3,310		$	259		$	3,569
Policyholders’ benefits		(123	)		123			—			(107	)		107			—			(109	)		109			—
Net interest income and other operating income, excluding policyholders’ benefits	$	3,844		$	(86	)	$	3,758		$	3,641		$	431		$	4,072		$	3,201		$	368		$	3,569
Cost efficiency ratio		41.2	%					39.6	%		41.1	%					36.4	%		44.3	%					35.6	%
Profit before tax growth:
Profit before tax	$	878		$	(172	)	$	706		$	897		$	346		$	1,243		$	421		$	243		$	664
IFRS management basis profit before tax growth:
09/30/06 compared to 09/30/05								6	%
09/30/06 compared to 06/30/06								(43	)%

2     

RECONCILIATIONS TO GAAP FINANCIAL MEASURES

HSBC Finance Corporation Income Statement

IFRS Management Basis

	Nine Months Ended 09/30/06									Nine Months Ended 09/30/05
				IFRS									IFRS
				Management			IFRS						Management			IFRS
	Owned			Basis			Management			Owned			Basis			Management
	Basis			Adjustments			Basis			Basis			Adjustments			Basis
	(dollars are in millions)
Net interest income	$	7,615		$	1,181		$	8,796		$	6,086		$	1,909		$	7,995
Net fee income		1,393			754			2,147			1,099			652			1,751
Trading income:
Loans held for resale		—			304			304			—			163			163
Hedge ineffectiveness and mark-to-market on non-qualifying hedges		—			(53	)		(53	)		—			(21	)		(21	)
Total trading income		—			251			251			—			142			142
Net (expense)/income from financial instruments designated at fair value		—			(25	)		(25	)		—			332			332
Other operating income		2,622			(2,063	)		559			2,719			(2,143	)		576
Total operating income		11,630			98			11,728			9,904			892			10,796
Loan impairment charges and other credit risk provisions		3,588			320			3,908			3,053			698			3,751
Loan impairment (releases)/charges, Katrina related		(90	)		(4	)		(94	)		180			25			205
Operating expenses		4,958			(551	)		4,407			4,597			(716	)		3,881
Profit before tax		3,174			333			3,507			2,074			885			2,959
Tax expense		1,167			110			1,277			695			303			998
Profit for the period	$	2,007		$	223		$	2,230		$	1,379		$	582		$	1,961
Adjustments, net of tax expense:
Effective interest rate impact		—			(91	)		(91	)		—			—			—
Katrina impact		—			(59	)		(59	)		—			138			138
Adjusted profit for the period	$	2,007		$	73		$	2,080		$	1,379		$	720		$	2,099
Cost Efficiency Ratio:
Total operating expenses	$	4,958		$	(551	)	$	4,407		$	4,597		$	(716	)	$	3,881
Policyholders’ benefits		(348	)		348			—			(347	)		347			—
Total operating expenses, excluding policyholders’ benefits	$	4,610		$	(203	)	$	4,407		$	4,250		$	(369	)	$	3,881
Net interest income and other operating income	$	11,630		$	98		$	11,728		$	9,904		$	892		$	10,796
Policyholders’ benefits		(348	)		348			—			(347	)		347			—
Net interest income and other operating income, excluding policyholders’ benefits	$	11,282		$	446		$	11,728		$	9,557		$	1,239		$	10,796
Cost efficiency ratio		40.9	%					37.6	%		44.5	%					36.0	%
Profit before tax growth:
Profit before tax	$	3,174		$	333		$	3,507		$	2,074		$	885		$	2,959
IFRS management basis profit before tax growth:
09/30/06 compared to 09/30/05								19	%

3

RECONCILIATIONS TO GAAP FINANCIAL MEASURES
HSBC Finance Corporation
Management Basis

	Three Months Ended
	September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005			September 30, 2005			June 30, 2005
	(dollars are in millions)
Net Interest Income:
Net interest income:
Owned basis	$	2,602		$	2,549		$	2,464		$	2,298		$	2,163		$	2,035
Management basis adjustments		342			381			435			475			524			620
Management basis	$	2,944		$	2,930		$	2,899		$	2,773		$	2,687		$	2,655
Average interest-earning assets:
Owned basis	$	158,722		$	153,021		$	147,266		$	138,788		$	127,038		$	119,523
Managed basis adjustments		1,493			2,620			3,505			5,757			7,779			10,203
Management basis adjustments		20,483			20,324			20,831			21,063			20,806			20,163
Management basis	$	180,698		$	175,965		$	171,602		$	165,608		$	155,623		$	149,889
Owned basis net interest margin		6.56	%		6.66	%		6.69	%		6.62	%		6.81	%		6.81	%
Management basis net interest margin		6.52	%		6.66	%		6.76	%		6.70	%		6.91	%		7.09	%
Return on Average Assets:
Profit for the period:
Owned basis	$	551		$	568		$	888		$	393		$	281		$	472
Management basis adjustments		44			57			80			50			34			36
Management basis	$	595		$	625		$	968		$	443		$	315		$	508
Adjusted profit for the period:
Owned basis	$	551		$	568		$	888		$	393		$	281		$	472
Management basis adjustments		44			57			80			50			34			36
Derivative adjustments		(46	)		6			(34	)		25			43			(37	)
Management basis adjusted for derivatives	$	549		$	631		$	934		$	468		$	358		$	471
Average assets:
Owned basis	$	172,746		$	167,505		$	162,688		$	150,644		$	141,765		$	134,834
Management basis adjustments		21,869			22,881			24,225			26,741			28,414			30,341
Management basis	$	194,615		$	190,386		$	186,913		$	177,385		$	170,179		$	165,175
Return on average owned assets		1.28	%		1.36	%		2.18	%		1.04	%		.79	%		1.40	%
Return on average management assets		1.22	%		1.31	%		2.07	%		1.00	%		.74	%		1.23	%
Return on average management assets, adjusted for derivatives		1.13	%		1.33	%		2.00	%		1.06	%		.84	%		1.14	%

4     

RECONCILIATIONS TO GAAP FINANCIAL MEASURES
HSBC Finance Corporation
Management Basis

	Three Months Ended
	September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005			September 30, 2005			June 30, 2005
	(dollars are in millions)
Managed Basis Risk Adjusted Revenue:
Net interest income	$	2,639		$	2,616		$	2,567		$	2,432		$	2,340		$	2,284
Other operating income, excluding securitization revenue and the mark-to-market on derivatives which do not qualify as effective hedges and ineffectiveness associated with qualifying hedges under SFAS No. 133		1,285			1,183			1,357			1,236			1,230			1,135
Less: Net charge-offs		(1,168	)		(1,121	)		(990	)		(1,163	)		(1,052	)		(1,028	)
Risk adjusted revenue	$	2,756		$	2,678		$	2,934		$	2,505		$	2,518		$	2,391
Management basis adjustments:
Net interest income	$	305		$	314		$	332		$	341		$	347		$	371
Other operating income, excluding securitization revenue and the mark-to-market on derivatives which do not qualify as effective hedges and ineffectiveness associated with qualifying hedges under SFAS No. 133		(64	)		(60	)		(65	)		(86	)		(88	)		(124	)
Less: Net charge-offs		(163	)		(149	)		(158	)		(179	)		(158	)		(156	)
Risk adjusted revenue, management basis adjustments	$	78		$	105		$	109		$	76		$	101		$	91
Management basis:
Net interest income	$	2,944		$	2,930		$	2,899		$	2,773		$	2,687		$	2,655
Other operating income, excluding securitization revenue and the mark-to-market on derivatives which do not qualify as effective hedges and ineffectiveness associated with qualifying hedges under SFAS No. 133		1,221			1,123			1,292			1,150			1,142			1,011
Less: Net charge-offs		(1,331	)		(1,270	)		(1,148	)		(1,342	)		(1,210	)		(1,184	)
Risk adjusted revenue, management basis	$	2,834		$	2,783		$	3,043		$	2,581		$	2,619		$	2,482
Average interest-earning assets:
Managed basis	$	160,215		$	155,641		$	150,771		$	144,545		$	134,817		$	129,726
Management basis adjustments		20,483			20,324			20,831			21,063			20,806			20,163
Management basis	$	180,698		$	175,965		$	171,602		$	165,608		$	155,623		$	149,889
Managed basis risk adjusted revenue		6.88	%		6.88	%		7.78	%		6.93	%		7.47	%		7.37	%
Management basis risk adjusted revenue		6.27	%		6.33	%		7.09	%		6.23	%		6.73	%		6.62	%

5     

RECONCILIATIONS TO GAAP FINANCIAL MEASURES

HSBC Finance Corporation

Management Basis

	Three Months Ended
	September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005			September 30, 2005			June 30, 2005
	(dollars are in millions)
Two-Months-and-Over Contractual Delinquency Ratio:
Consumer 2+ delinquency:
Owned basis	$	6,495		$	5,652		$	5,312		$	5,366		$	4,861		$	4,419
Management basis adjustments		624			624			619			725			830			887
Management basis	$	7,119		$	6,276		$	5,931		$	6,091		$	5,691		$	5,306
Consumer receivables:
Owned basis	$	156,760		$	153,779		$	146,580		$	139,726		$	128,524		$	118,532
Management basis adjustments		21,665			22,236			23,241			25,722			27,631			29,187
Management basis	$	178,425		$	176,015		$	169,821		$	165,448		$	156,155		$	147,719
Owned basis consumer 2+ delinquency ratio		4.14	%		3.68	%		3.62	%		3.84	%		3.78	%		3.73	%
Management basis consumer 2+ delinquency ratio		3.99	%		3.57	%		3.49	%		3.68	%		3.64	%		3.59	%
Consumer Net Charge-off Ratio:
Consumer net charge-offs:
Owned basis	$	1,138		$	1,079		$	928		$	1,044		$	902		$	844
Management basis adjustments		193			191			220			298			308			340
Management basis	$	1,331		$	1,270		$	1,148		$	1,342		$	1,210		$	1,184
Average consumer receivables:
Owned basis	$	155,913		$	149,933		$	143,893		$	134,647		$	123,163		$	115,354
Management basis adjustments		21,756			22,942			24,333			26,817			28,579			30,359
Management basis	$	177,669		$	172,875		$	168,226		$	161,464		$	151,742		$	145,713
Owned basis consumer net charge-off ratio		2.92	%		2.88	%		2.58	%		3.10	%		2.93	%		2.93	%
Management basis consumer net charge-off ratio		3.00	%		2.94	%		2.73	%		3.32	%		3.19	%		3.25	%

6     

RECONCILIATIONS TO GAAP FINANCIAL MEASURES

HSBC USA Inc. Income Statement

IFRS

	Three Months Ended 09/30/06									Three Months Ended 06/30/06									Three Months Ended 09/30/05
	Owned			IFRS			IFRS			Owned			IFRS			IFRS			Owned			IFRS			IFRS
	Basis			Adjustments			Basis			Basis			Adjustments			Basis			Basis			Adjustments			Basis
	(dollars are in millions)
Net interest income	$	777		$	(151	)	$	626		$	775		$	(158	)	$	617		$	761		$	(95	)	$	666
Net fee income		348			(141	)		207			316			(85	)		231			265			(19	)		246
Trading income		52			257			309			269			105			374			137			50			187
Net income from financial instruments designated at fair value		—			(55	)		(55	)		—			52			52			—			(17	)		(17	)
Other operating income		214			(59	)		155			88			(25	)		63			103			(6	)		97
Total operating income		1,391			(149	)		1,242			1,448			(111	)		1,337			1,266			(87	)		1,179
Loan impairment charges and other credit risk provisions		208			8			216			224			(19	)		205			173			13			186
Loan impairment (releases)/charges, Katrina related		(1	)		—			(1	)		(2	)		—			(2	)		26			—			26
Operating expenses		819			(134	)		685			775			(104	)		671			673			(91	)		582
Profit before tax		365			(23	)		342			451			12			463			394			(9	)		385
Tax expense		121			(10	)		111			165			5			170			142			(2	)		140
Profit for the period	$	244		$	(13	)	$	231		$	286		$	7		$	293		$	252		$	(7	)	$	245
Cost Efficiency Ratio:
Total operating expenses	$	819		$	(134	)	$	685		$	775		$	(104	)	$	671		$	673		$	(91	)	$	582
Net interest income and other operating income		1,391			(149	)		1,242			1,448			(111	)		1,337			1,266			(87	)		1,179
Cost efficiency ratio		58.9	%					55.2	%		53.5	%					50.2	%		53.2	%					49.4	%
Profit before tax growth:
Profit before tax	$	365		$	(23	)	$	342		$	451		$	12		$	463		$	394		$	(9	)	$	385
IFRS profit before tax growth:
09/30/06 compared to 09/30/05								(11	)%
09/30/06 compared to 06/30/06								(26	)%

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RECONCILIATIONS TO GAAP FINANCIAL MEASURES

HSBC USA Inc. Income Statement

IFRS

	Nine Months Ended 09/30/06									Nine Months Ended 09/30/05
	Owned			IFRS			IFRS			Owned			IFRS			IFRS
	Basis			Adjustments			Basis			Basis			Adjustments			Basis
	(dollars are in millions)
Net interest income	$	2,287		$	(466	)	$	1,821		$	2,321		$	(214	)	$	2,107
Net fee income		973			(305	)		668			704			(141	)		563
Trading income		600			441			1,041			268			217			485
Net income from financial instruments designated at fair value		—			(43	)		(43	)		—			(15	)		(15	)
Other operating income		373			(33	)		340			425			(98	)		327
Total operating income		4,233			(406	)		3,827			3,718			(251	)		3,467
Loan impairment charges and other credit risk provisions		590			—			590			450			47			497
Loan impairment (releases)/charges, Katrina related		(4	)		—			(4	)		26			—			26
Operating expenses		2,380			(360	)		2,020			2,012			(262	)		1,750
Profit before tax		1,267			(46	)		1,221			1,230			(36	)		1,194
Tax expense		429			(19	)		410			450			(9	)		441
Profit for the period	$	838		$	(27	)	$	811		$	780		$	(27	)	$	753
Cost Efficiency Ratio:
Total operating expenses	$	2,380		$	(360	)	$	2,020		$	2,012		$	(262	)	$	1,750
Net interest income and other operating income		4,233			(406	)		3,827			3,718			(251	)		3,467
Cost efficiency ratio		56.2	%					52.8	%		54.1	%					50.5	%
Profit before tax growth:
Profit before tax	$	1,267		$	(46	)	$	1,221		$	1,230		$	(36	)	$	1,194
IFRS profit before tax growth:
09/30/06 compared to 09/30/05								2	%

8