Dividend Declaration

HSBC Holdings PLC
26 March 2003

26 March 2003


                               HSBC HOLDINGS PLC

                        SECOND INTERIM DIVIDEND FOR 2002

                           SCRIP DIVIDEND ALTERNATIVE

On 3 March 2003, the Directors of HSBC Holdings plc declared a second interim
dividend for 2002 of US$0.325 per ordinary share payable on 6 May 2003 to
shareholders on the Register on 21 March 2003. The dividend is payable in cash
in United States dollars, sterling or Hong Kong dollars, or a combination of
these currencies, with a scrip dividend alternative. The "Market Value" for the
issue of new shares under the scrip dividend alternative is:

                         US$10.7146 for each new share

The "Market Value" is the United States dollar equivalent of £6.796, being the
average of the middle market quotations for the ordinary shares on the London
Stock Exchange as derived from the Daily Official List for the five business
days beginning on 19 March 2003 (the day on which the shares were first quoted
ex-dividend).

Dividends payable in cash in sterling or Hong Kong dollars on 6 May 2003 will be
converted from United States dollars at the forward exchange rates quoted by
HSBC Bank plc in London at or about 11.00 am on 28 April 2003. These exchange
rates will be announced to the London, Hong Kong, New York and Paris stock
exchanges.

Particulars of the dividend arrangements will be mailed to shareholders on or
about

1 April 2003, and elections must be received by the Registrars by 24 April 2003.






R G Barber

Group Company Secretary

HSBC Holdings plc




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