Acquisition

HSBC Holdings PLC
30 October 2001

                     HSBC COMPLETES PURCHASE OF DEMIRBANK


HSBC Bank plc has today completed the purchase of Demirbank TAS from the
Savings Deposits Insurance Fund in Turkey. This follows the bank's
announcement on 20 September that it had signed a Sale and Purchase Agreement
for the acquisition of Demirbank for US$350 million in cash.

Demirbank was the fifth largest private bank in Turkey before being taken into
administration in December 2000. It has a network of 200 branches and offices
in 38 cities across Turkey and offers a full range of financial services
through a modern multi-channel delivery system including internet, ATMs, call
centres and credit cards.

Initially, Demirbank will operate separately from HSBC's existing subsidiary
in Turkey, HSBC Bank AS. Once regulatory approval has been obtained, the two
banks will be merged, creating a combined business with a balance sheet of
approximately US$2 billion and capital of approximately US$250 million. It is
anticipated that the merger will be completed prior to 31 December 2001.

The combined bank will offer a comprehensive range of retail, corporate,
treasury, capital markets, stockbroking, fund management and investment
banking services within the Turkish market. Additionally, Turkish customers
will have access to international markets through the HSBC Group's extensive
global network. It is anticipated that the merged bank will be called HSBC
Bank; a formal legal name will be finalised in due course.

Piraye Antika, currently General Manager of HSBC Bank AS, will be appointed
General Manager of Demirbank TAS and, subsequently, of the merged bank. Keith
Whitson, HSBC's Group Chief Executive, will become Chairman.