Bangkok Metropolitan Bank to be Acquired

HSBC Hldgs PLC
16 May 2000

        HSBC TO ACQUIRE BANGKOK METROPOLITAN BANK

HSBC Holdings plc is pleased to confirm that an agreement
in principle has been reached with the Financial
Institutions Development Fund (FIDF) in Thailand for HSBC
to acquire approximately 75 per cent of the issued shares
of Bangkok Metropolitan Bank (BMB) for THB36.6 billion
(US$940 million). This represents a premium of
approximately 96 per cent per share. Completion of the
transaction is subject to the approval of the Minister of
Finance and the execution of definitive agreements.

After assuming management of BMB, HSBC will reorganise
BMB's capital structure to ensure an appropriate level of
capital. Expected capital after reorganisation will be
approximately THB10.0 billion (US$257 million). The FIDF
will enter into a loss sharing and yield maintenance
arrangement with HSBC in relation to a substantial
proportion of the asset base. This arrangement is similar
to that employed in previous sales of banks by the FIDF.

HSBC is the oldest foreign bank in Thailand, having
established operations in the country since 1888. HSBC
believes its strong capital base, management expertise
and e-business development capacity, combined with BMB's
established branch network, will provide a sound base
upon which to develop BMB's core retail and commercial
businesses.

Bangkok Metropolitan Bank (PCL) was established in 1950
as the 12th commercial bank in Thailand. The bank is the
eighth largest bank in Thailand with total assets and
deposits of approximately US$4.0 billion and US$3.9
billion respectively as of 31 December 1999.