HSBC to expand in Poland

HSBC Holdings PLC
11 September 2003

                         HSBC GROUP TO EXPAND IN POLAND

HSBC is to expand its operations in Poland, following today's decision by the
Polish Commission of Banking Supervision to allow the Group to proceed with its
proposed acquisition of Polski Kredyt Bank S.A. and obtain a new banking
licence.

HSBC is in negotiations to buy Polski Kredyt Bank S.A. from its parent, Kredyt
Bank S.A., for approximately PLN31 million (approximately US$7.8 million). The
acquisition is subject to a number of terms and conditions, including the
completion of due diligence and regulatory approvals. It is expected that the
acquisition will be completed in the third quarter of 2003. HSBC intends to
rename Polski Kredyt Bank S.A. as HSBC Bank Polska S.A. following completion.

Consumer finance operations are planned for launch in the fourth quarter of 2003
using Household's established business model. Relationships will be established
with retail partners and services cross-sold to their customers. Unsecured
loans, credit cards and affinity cards will then be made available to these new
customers in 2004.

HSBC currently offers corporate finance advisory and stockbroking services to
Polish and international companies from its Warsaw headquarters. The proposed
acquisition will give the Group the ability to develop further its Corporate,
Investment Banking and Markets businesses in Poland from early 2004. These will
include Treasury, Corporate Banking and Payments & Cash Management services.

Lech Kurklinski, Deputy Chief Executive Designate, HSBC Bank Polska S.A., will
lead the consumer finance business. David Thomas, Chief Executive of HSBC
Investment Services Poland and HSBC Securities Polska, will continue in his
current role, leading the development of client relationships.

Chris Ignatowicz, Chief Executive Designate HSBC Bank Polska S.A. and country
manager Poland, said: "We are grateful to the Commission for supporting our
expansion plans. These demonstrate HSBC's commitment to helping the development
of the Polish economy as it plans to enter the European Union on 1 May 2004. The
business model we have adopted will allow the combined strengths of HSBC and
Household to create a powerful banking and financial services business in an
important market."

Notes to editors:

HSBC Holdings plc

With over 9,500 offices in 79 countries and territories, and assets of US$983
billion at 30 June 2003, the HSBC Group is one of the world's largest banking
and financial services organisations.


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