HSBC acquisition in Brazil

HSBC Holdings PLC
19 August 2004


                          HSBC BRAZIL SIGNS AGREEMENT
               TO ACQUIRE CONSUMER FINANCE OPERATIONS OF INDUSVAL

HSBC Bank Brasil S.A. has entered into an agreement to acquire the consumer
finance operations of Indusval Multistock Group, which were formerly known as
Maxima, for a total consideration of BRL371 million (approximately US$124
million) subject to final adjustments at closing. This includes the purchase of
Indusval's consumer finance sales promotion company ('Valeu Promotora de
Vendas'), its securitisation subsidiary and consumer finance loans amounting to
approximately BRL253 million.

Completion of the transaction, which will be funded from internal resources, is
subject to conditions including regulatory approvals.

Indusval's consumer finance business in Brazil operates in two main areas -
store loans through some 3,250 retailers and personal loans through its own
network of 61 branches and 1.1 million active customers.

Emilson Alonso, CEO of HSBC Bank Brasil, said: "This transaction reaffirms
HSBC's strong commitment to Brazil and to consumer finance. It will help us grow
our share of the country's consumer finance market where we already have a
leading position through our acquisition of the Losango consumer finance
business in 2003."

Manoel Felix Cintra Neto, president of Indusval Multistock, said: "We are happy
to have built up such a successful business that will enhance HSBC's presence in
Brazil. This transaction will allow us to focus our efforts in the middle market
segment, including possible acquisitions in order to expand our product scope."


Notes to editors:

1. HSBC Bank Brasil
HSBC Bank Brasil S.A. - Banco Multiplo is a wholly-owned subsidiary of HSBC
Holdings plc and serves 3.5 million customers from approximately 1,600 branches
and points of sale in 556 cities in all 27 Brazilian states.

2. The HSBC Group
HSBC Holdings plc is headquartered in the UK. The HSBC Group serves over 110
million customers worldwide from approximately 10,000 offices in 76 countries
and territories in Europe, the Asia-Pacific region, the Americas, the Middle
East and Africa. With assets of US$1,154 billion at 30 June 2004, HSBC is one of
the world's largest banking and financial services organisations. HSBC is
marketed worldwide as 'the world's local bank'.



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