Acquisition

HSBC Hldgs PLC
2 May 2000


          HSBC TO ACQUIRE CHASE PANAMA BANK BUSINESS

Agreement has been reached between HSBC Bank USA and The Chase
Manhattan Bank to acquire Chase's branch operations in Panama.

HSBC Bank USA intends to acquire the full-service, stand-alone
bank business, which includes retail and wholesale
capabilities. The acquisition includes 11 full-service branches
located as follows: seven branches in Panama City, two branches
in Colon City, one branch in David and one branch in Chitre. At
31 December 1999, Chase's Panama branch operations had
approximately US$752 million in assets and a net book value of
US$27 million.

HSBC has had a presence in Panama since 1972 and currently
operates as a full-service branch of HSBC Bank plc, with a
strong franchise in corporate business as well as five retail
branches. At 31 December 1999, HSBC in Panama had total assets
of US$477 million. HSBC expects to file applications with 
regulatory authorities to transfer ownership of its existing
Panama business from HSBC Bank plc to HSBC Bank USA. Upon 
closing, all Chase employees will become employees of HSBC
Bank USA.

Youssef Nasr, president and chief executive officer of HSBC
Bank USA, said: 'We are committed to the Panama business, both
retail and commercial. These two organisations are a perfect
fit.'

Brian O'Neill, chairman of Chase in Latin America, said: 'The
sale of these branches in Panama, which primarily serve
individual retail customers, is consistent with Chase's
strategic focus on providing financial products and services to
large corporates, sovereign and high net-worth private clients
in the region.'

The acquisition, which is subject to certain conditions
including regulatory approvals in the US and Panama, is
expected to be completed during the third quarter of 2000. The
combined entity will become the largest commercial lender in
Panama and the Colon Free Zone.