News Release

HSBC Unveils Growth Plan for Greater New York City Area

Bank Plans to Open at Least 10 New Branches in New York City, Suburbs in 2005

11 May 2005

NEW YORK – HSBC Bank USA N.A., the U.S. banking unit of one of the world's largest financial institutions, is aggressively expanding in the Metropolitan New York City area, bringing the world's local bank to more people who live and work in New York City, Long Island and Westchester.

HSBC, which has one of the largest branch networks in New York State, is beginning its New York City area expansion with at least 10 new branches in 2005 and plans to continue to grow in the area in 2006. To staff the new branches and to continue to bolster the banks leading small- and middle-market business banking efforts, HSBC plans to add about 200 new employees in the area this year.

"These new locations will help us better serve our individual and business customers in and around New York City," said Martin Glynn, president and chief executive officer of HSBC Bank USA. "We already have a strong presence in New York and the bank is growing to meet the opportunity in the marketplace."

Simultaneously, HSBC is introducing new branch design to make offices more inviting and efficient places for customers to do their banking. The branches feature more spacious, customer-friendly floor plans with a greater emphasis on providing customers with easy access to information and private areas for consultation with the banks range of financial professionals. Among those professionals are financial advisers, insurance specialists and small business experts.

HSBC has this year opened new branches in Chinatown at 11 East Broadway and Long Island City at 22-15 43rd Ave. Among the planned new locations are 2 Park Ave., Penn Station, Penn Plaza, Brighton Beach, Mineola and Grand Street.

"With our growth strategy underway, we are making the world's local bank more local to New Yorkers every day," said David Kotheimer, senior executive vice president in charge of New York State. Most of the banks New York City branches have extended hours and many are open seven days a week. To complement HSBC's growing branch network and open hours, customers have access to the bank's awardwinning Personal Internet Banking service, which includes free online bill payment. In addition to the new branches, many existing HSBC branches will be remodelled.

Today's announcement follows the launch of HSBC's first major brand advertising campaign focused on New York. The brand is meant to speak directly to New Yorkers and identifies the city as one of the most diverse in the world, made up of people from nearly every country and culture. All advertising executions underscore that HSBC which does business in 77 countries on six continents – is ideally suited to serve the diverse needs of New Yorkers.

HSBC Bank, the No. 1 Small Business Administration lender in New York State, offers a wide range of deposit, lending and financial planning services for individuals and businesses. In addition to free checking for retail customers and its unprecedented BusinessSmart free business checking accounts, HSBC's low borrowing rates on lines of credit and high service levels result in quick lending decisions and expedient loan closings.