Acqn of Sub-Custody Business

HSBC Holdings PLC
26 July 2006


                  HSBC TO ACQUIRE WESTPAC SUB-CUSTODY BUSINESS
                          IN AUSTRALIA AND NEW ZEALAND

The Hongkong and Shanghai Banking Corporation Limited has entered into an
agreement with Westpac to acquire its sub-custody business in Australia and New
Zealand. The consideration will be up to A$150 million (approximately US$112.5
million) subject to the business meeting certain performance standards over a
six month transition period.

The acquisition is expected to be completed by 31 August 2006. Completion of the
transaction is subject to obtaining the necessary regulatory approval.

HSBC is a global market leader in the provision of sub-custody services,
operating in 37 markets in Asia-Pacific, the Middle East, Europe and Latin
America. The HSBC Group provides securities services to global custodians, fund
managers, broker dealers and other financial institutions worldwide and is
responsible for servicing client sub-custody assets of over US$1 trillion.

Nick Bryan, Head of HSBC Securities Services in Asia-Pacific, said: "There is
established demand among institutional clients for regional securities custody
services. The addition of Westpac's sub-custody business to our existing
presence in Australasia means that we will match the market leading position we
already hold in the rest of the Asia-Pacific region. Many of Westpac's clients
already use our sub-custody services in other markets and the acquisition will
position us as a major provider in Australasia.

"This acquisition also supports HSBC's strategy in Australia and New Zealand -
making full use of the Group's strengths and participating in market
opportunities where we have a strong competitive advantage. The acquisition is
strategically important, making the Australasian market the third largest by
assets among HSBC's sub-custody businesses in the Asia-Pacific region."

Notes to editors:

1. The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding and a
principal member of the HSBC Group which, with over 9,500 offices in 76
countries and territories and assets of US$1,502 billion at 31 December 2005, is
one of the world's largest banking and financial services organisations.

Further information can be found at www.hsbc.com.hk

2. HSBC in Australia
In Australia, the HSBC Group offers an extensive range of financial services
through a network of 32 branches and offices. These services include personal
and commercial financial services, trade finance, treasury and financial
markets, financial planning and securities custody. Principal HSBC Group members
operating in Australia include HSBC Bank Australia Limited (ABN 48006434162),
HSBC Precious Metals (Australia) Limited (ABN 98 001 930 392) and HSBC Bank plc
(ABN 98067329015). HSBC is marketed worldwide as 'the world's local bank'.

Further information can be found at www.hsbc.com.au

3. HSBC in New Zealand
In New Zealand, the HSBC Group offers an extensive range of financial services
through a network of eight branches and offices. These services include personal
and commercial financial services, trade finance, treasury and financial
markets, corporate banking, investment advisory and securities custody. The
principal HSBC Group member in New Zealand is The Hongkong and Shanghai Banking
Corporation Limited.

Further information can be found at www.hsbc.co.nz

4. Westpac
Westpac provides a full range of consumer, business and corporate banking and
wealth management services. It is the fourth largest Australian bank and is
ranked in the top 10 publicly listed companies in Australia by market
capitalisation. Westpac has operated as a sub-custodian in the Australian and
New Zealand markets for over 60 years.

Further information can be found at www.westpac.com.au


                      This information is provided by RNS
            The company news service from the London Stock Exchange