HSBC AND DEMIRBANK

HSBC Holdings PLC
20 September 2001

                      HSBC AGREES PURCHASE OF DEMIRBANK

HSBC Bank plc has signed a Sale and Purchase Agreement with the Savings
Deposits Insurance Fund in Turkey for the acquisition of Demirbank TAS for
US$350 million in cash, which will be met from internal resources at the HSBC
Group. This follows the bank's announcement on 19 July 2001 that it had won
the tender process managed by the Banking Regulatory and Supervisory Agency of
Turkey (BDDK).

Under the terms of the agreement, HSBC will acquire the legal entity of
Demirbank, including selected assets and liabilities of approximately US$1
billion. Demirbank's wholly owned stock broking and funds management
subsidiary, Demir Yatirim, will be included in the sale. All other
subsidiaries of Demirbank, together with those assets and liabilities not
being acquired by HSBC, will remain under the ownership and management of the
BDDK.

Completion of the purchase is expected to take place by 31 October 2001,
subject to regulatory approval and the satisfaction of various terms and
conditions.

Demirbank was the fifth largest private bank in Turkey before being taken into
administration in December 2000. It has some 200 branches, approximately US$2
billion in deposits and approximately 650,000 retail customers. It offers a
full range of financial services and a modern multi-channel delivery system
including internet, ATMs and call centres.

HSBC has run a successful and profitable operation in Turkey since 1990.
Initially, this will continue to operate as a separate legal entity, but HSBC
plans to merge HSBC Bank A.S with Demirbank as soon as possible after the
purchase is completed. The merger, which is subject to BDDK and regulatory
approval, would create a combined business with a balance sheet of
approximately US$2 billion and capital of approximately US$250 million.


HSBC's Group Chief Executive, Keith Whitson, who will also become Chairman of
Demirbank, said: 'The BDDK is to be congratulated on its professional conduct
of the tender process and for its management of the Turkish banking sector in
difficult circumstances. We are delighted to welcome Demirbank to our Group
and look forward to taking it forward as part of HSBC.

'We have maintained our commitment to Turkey throughout the various economic
difficulties of recent years. We take a positive view of Turkey's long term
prospects and intend to play a full part in the development of the country's
financial services industry.'

Note to editors:

HSBC Holdings plc

HSBC Bank plc is a wholly-owned subsidiary of HSBC Holdings plc. With some
6,500 offices in 78 countries and territories and assets of US$692 billion at
30 June 2001, HSBC is one of the world's largest banking and financial
services organisations.