HSBC further strengthens capi

RNS Number : 5141F

HSBC Holdings PLC

09 October 2008

 



9 October 2008

HSBC FURTHER STRENGTHENS CAPITAL BASE OF UK SUBSIDIARY FROM GROUP'S OWN RESOURCES

HSBC Holdings plc has today further strengthened the capital base of its UK subsidiary, HSBC Bank plc, fulfilling its agreed commitment to the UK government's banking sector scheme announced yesterday, through an equity injection of £750million, representing one per cent of the total shareholders' equity of the HSBC Group as at 30 June 2008.

The capital injection has been funded from the Group's own resources. 

As previously announced, HSBC has no plans to utilise the UK government's recapitalisation initiative. With a tier one capital ratio of 8.8 per cent and a loan to deposit ratio of 90 per cent as at 30 June 2008, the Group remains one of the most strongly capitalised and liquid banks in the world.

HSBC also continues to support efforts to stabilise the operation of financial markets and over the last three days has provided significant amounts of liquidity to the London Sterling interbank market, lending around £4 billion of three-month and six-month money to other banks. HSBC will continue to support the London interbank market.

Media enquiries to: Patrick McGuinness on 020 7991 0111 or at [e-mail]

Note to Editors:

The HSBC Group 

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from more than 9,500 offices in 85 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With assets of US$2,547 billion at 30 June 2008, 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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