News Release

HSBC Establishes HSBC National Bank USA in Maryland to Aid in U.S. Expansion

1 November 2006

WILMINGTON, Del. - HSBC USA Inc., the U.S. banking unit of one of the world's largest financial services companies, has established HSBC National Bank USA, a new, nationally chartered bank domiciled in Maryland to facilitate continued organic growth in the U.S.

HSBC National Bank USA is a first-tier subsidiary of HSBC USA Inc. and a sister bank to HSBC Bank USA, N.A., HSBC USA Inc.'s primary operating unit. The new national bank charter, granted by the Office of the Comptroller of the Currency and approved by appropriate regulatory agencies, will aid HSBC in growing its bank footprint.

"For the past two-and-a-half years, we have been growing our banking business throughout the United States," said Brendan McDonagh, chief operating officer of HSBC USA Inc. "The establishment of HSBC National Bank USA will  help in continuing our expansion into markets that fit strategically with our ongoing growth effort."

HSBC began an organic growth strategy in 2004, and has since added branches throughout New York, New Jersey, Florida, California, Washington, D.C. and Pennsylvania. HSBC recently established a commercial banking office in Chicago and plans to open its first Connecticut branch in November.

HSBC National Bank will offer a full range of products and services, and will offer account services to customers of HSBC Bank USA, N.A.. HSBC National Bank's main office is located at Air Rights Center, 7315 Wisconsin Ave., Bethesda, Maryland.  The office is open to the public and accepts deposits and loan applications as well as offers check cashing services.

Media Contacts

• Stephen Cohen
• stephen.e.cohen@us.hsbc.com
• HSBC - North America
• 212-525-6901