AGM Statement

HSBC Holdings PLC
26 May 2006


                    HSBC HOLDINGS PLC ANNUAL GENERAL MEETING

Statement given by Sir John Bond, Group Chairman, HSBC Holdings plc, at the
Annual General Meeting held at the Barbican Hall, London, on Friday, 26 May
2006.

2005 was another year of sustained progress. We grew profit attributable to
shareholders by 17 per cent. This represents US$1.36 per share, an increase of
15 per cent. The total dividend in respect of 2005 was 73 US cents per share, an
increase of 10.6 per cent over the dividends for 2004.

Our all-round performance during the last three years has brought impressive
returns to our shareholders. Viewed from a rather longer perspective, HSBC's
dividend has achieved a compound annual growth rate of 17.3 per cent since 1990.

Our results for 2005 reflect our success in increasing revenues and improving
productivity, in line with our Managing for Growth strategic plan. Our earnings
remained well diversified both geographically and by customer group. We achieved
good growth and further efficiencies in our core UK personal and commercial
banking businesses. Worldwide, we grew our commercial banking business strongly
on the back of recent investments.

We have continued to invest in the future of our business and in two key areas
in particular. One of them, the development of our personal financial services
business in Asia, has attracted relatively little attention. However, our
progress has been encouraging. For example, in 2005 we expanded our card base in
the region to 10.3 million, adding 2.1 million cards during the year.

The other, which has attracted a good deal of comment, is the development of our
Corporate, Investment Banking and Markets business, which we refer to as CIBM.
We remain firmly committed to our five-year strategic plan for CIBM. We are on
track and gaining momentum in the areas of investment. Cost growth peaked during
2005 and there is clear evidence of positive client response to our expanded
product capabilities. We have won a number of important new mandates and
improved our position in various league tables, particularly for international
bond issuance.

Although we made a small number of acquisitions in 2005 to complement existing
businesses, our strong preference is to concentrate on organic growth.
Acquisition opportunities are brought to us from time to time. However, we shall
only respond positively to those which meet strict criteria and which are in
your long-term interests.

HSBC has an unusually wide geographical footprint. As we look around the world
we see numerous opportunities to build on our existing operations. The developed
economies are often referred to as 'mature' and this suggests that there are
limited opportunities for growth. However, we believe that there is ample scope
to improve productivity and to increase our market share through new products
and superior customer service. At the same time, there are exciting
opportunities to expand in the emerging markets which are underbanked and where
the demand for all kinds of financial services is growing rapidly. These include
countries such as China, India, Mexico, Brazil, Turkey and Vietnam.

I have spoken at previous AGMs about the growing influence of the emerging
markets and particularly of China and India. Too often, this rebalancing of the
world economy is portrayed as a threat to the West. We must hope that such
perceptions do not fuel protectionist sentiments. HSBC believes that the current
imbalance between rich and poor countries is unsustainable. We also believe
that, although the emerging markets' growing share of the world economy will
involve some profound and at times uncomfortable changes for developed
countries, it will bring enormous opportunities. Those countries and companies
which are prepared to adapt and are nimble will discover new markets for their
products and services. They will prosper.

HSBC's origins, of course, lie in the emerging markets. Some, like Hong Kong,
having enjoyed several decades of fast growth, became developed economies.
Others, in turn, are now displaying the same characteristics that we witnessed
in parts of Asia during the 1960s and 1970s. HSBC has the history, the human
expertise, the technological capabilities and the physical presence to build its
business in such markets. It also has the international network to capture a
growing share of the trade flows which will result from their greater
participation in the world economy. At a time when there is renewed debate in
some countries about the optimum level of foreign participation in domestic
financial systems, our long-established presence is an advantage.

For our shareholders, HSBC offers a uniquely well diversified international
investment in an increasingly interconnected world. We have a physical presence
in 76 countries and territories. We have customers in 200 countries. No one
country accounts for more than 25 per cent of our pre-tax profits. At almost 20
per cent in 2005, the emerging markets already account for a significant and
growing share of our worldwide earnings.

When we reported our results for 2005 in early March we said that, although we
remain mindful of the imbalances in the world economy, the outlook for 2006 was
encouraging. So far, this has proved to be the case. We have seen broadly based
economic growth. The US economy has been strong and it is now clear that the
spike in bankruptcy filings experienced in the final quarter of last year was a
result of changes in bankruptcy laws rather than economic deterioration.

Our largest businesses - those in the US, Hong Kong and the UK - have all
performed well and overall our credit experience remains good. CIBM's results
reflect favourable trading conditions in the first quarter of the year and we
have made significant progress in the areas in which we have invested. There
were also strong contributions from our operations in Mexico, Malaysia,
Singapore, China, India, Brazil, and the Middle East. As at the end of the first
quarter, the results of all of our customer groups were better than those
achieved during the same period last year.

Many shareholders will be aware of the growing public interest in corporate
social responsibility. We continue to hold robustly to the view that our first
responsibility is to be successful. However, we also believe that, far from
being incompatible, sustainable success and good conduct actually go hand in
hand. Like any organisation, HSBC is not perfect but its tradition of always
trying to do the right thing - by its customers, its shareholders, its employees
and the wider community it serves - goes back to its earliest days. In fact,
balancing our various obligations can be challenging in today's complex world.
Fortunately, we are able to draw on a vast amount of knowledge and expertise to
guide us on a range of social, ethical and environmental issues.

We have made further progress during the last 12 months. For example, we believe
we were the world's first major bank to become carbon neutral. We have a far
better grasp of our direct impact on the environment now than we had three years
ago. At the same time, we continue to review our indirect impacts. We have
introduced additional guidelines for lending to environmentally sensitive
sectors. We are prepared to turn down business where it is incompatible with the
standards we have set for ourselves, but our strong preference is to work
closely and constructively with our clients.

We continue to share our success and to support the communities we serve around
the world. Education and the environment are our principal areas of citizenship.

HSBC's success is due in large part to the talents and dedication of my 284,000
colleagues around the world. By meeting our customers' needs the people who work
for HSBC serve our shareholders and I take this opportunity to thank them warmly
for their immense contribution to your company's performance. Difficult though
it may be for the investment community to evaluate, it is the human fabric and
the character of HSBC which sets it apart from its competitors. Our people are
our brand.

Similarly, I am indebted to my fellow Directors for the expertise they bring to
the conduct of your company's affairs. Since the last AGM, Simon Robertson has
been appointed an independent non-executive Director. Simon is non-executive
Chairman of Rolls-Royce Group plc, the former Chairman of Dresdner Kleinwort
Benson and a former Managing Director of Goldman Sachs International.

Sir John Kemp-Welch retires today and I take this opportunity to thank him for
the great knowledge and wisdom he has brought to the business of the Board.

Alan Jebson also retires today. Alan has given 28 years of distinguished service
to HSBC. He has played a key role in the vital area of information technology
and has also led the development of our global resourcing initiative.

I, too, retire at the conclusion of today's meeting. It has been an immense
privilege and a pleasure to serve HSBC for the last 45 years, and as your
Chairman for the last eight. Today, Stephen Green will succeed me as Group
Chairman and Michael Geoghegan will succeed Stephen as Group Chief Executive.
Management continuity is a hallmark of HSBC and today's succession will be
seamless. I hope you will join me in congratulating Stephen and Michael on their
appointments. They are supremely well qualified to take HSBC forward and they
will work tirelessly in the long-term interests of our shareholders.




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