Sale of Nicosia Branch

HSBC Holdings PLC
12 May 2006

HSBC SELLS NICOSIA BRANCH TO CYPRUS POPULAR BANK

HSBC Bank plc has entered into an agreement to sell certain of the assets and
liabilities of its branch in Nicosia to the Cyprus Popular Bank Public Company
Limited. The value of the gross assets to be transferred to Cyprus Popular Bank
amounts to approximately £43 million. Completion of the sale is subject to
receiving the necessary approvals from supervisory authorities in Cyprus.

The branch provides foreign-currency denominated commercial and personal banking
services to local and international customers. The assets and liabilities to be
sold are the customer loans, deposits and guarantees of the branch.

HSBC Bank plc is in the process of submitting an application to establish a
Representative Office in Cyprus which will provide a continuing source of
assistance to customers following the completion of the branch closure.

Following completion of the sale, the business of the branch will be wound down
and its banking licence modified to refelect the change to a Representative
Office, subject to approval.

The majority of the HSBC branch staff will be offered employment with Cyprus
Popular Bank.

Notes to editors:

HSBC Holdings plc
HSBC Holdings plc serves over 125 million customers worldwide through some 9,500
offices in 76 countries and territories in Europe, the Asia-Pacific region, the
Americas, the Middle East and Africa. With assets of US$1,502 billion at 31
December 2005, 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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