News Release

HSBC Is New York State's #1 SBA Lender for Third Consecutive Year and Nation’s 8th largest SBA lender

31 October 2005

NEW YORK – HSBC Bank USA, N.A. (NYSE: HBC) announced today that it has been named the top Small Business Administration lender in New York State in dollar volume for the third consecutive year.

The bank was the No. 1 SBA lender by number of loans and dollar volume for the 2005 SBA fiscal year, which ended Sept. 30, 2005.   HSBC made 1,843 SBA-approved loans in the state for a total of $138 million during that period.  This marked the second year in a row that the bank led in both dollar volume and number of loans.In addition, HSBC ranked #1 for the second consecutive year in number of loans and dollar volume in the highly competitive New York City market.

Nationally, HSBC ranked 8th in SBA loans, making 2,171 loans for a total of $163 million.  This also marked an increase over last year when HSBC was the 10th largest SBA lender in the country.   HSBC also ranks 6 _th in SBA lending in New Jersey, where it opened its first branch in July.

"This ranking is especially meaningful because we have made small business lending a priority,” said Brendan McDonagh, chief operating officer of HSBC Bank USA, N.A.  “We recognize the powerful impact small businesses have on the economies of their states and of our nation as a whole, and we are proud to partner with the SBA to ensure the success of these companies.”

HSBC offers several SBA programs to its customers, including SBA Express and the SBA Preferred Lender Program.  In addition, the bank offers a wide variety of products and services designed specifically with small business in mind, including its popular BusinessSmart, business free checking product.

For information on HSBC products and services visit the bank's Web site at http://us.hsbc.com.

Media Contacts

• Kathleen Rizzo Young
• Kathleen.Rizzo.Young@us.hsbc.com
• Senior Vice President, Group Public Affairs
• HSBC Bank USA, N.A.
• (716) 841-5003