HSBC RE-CAPITALISES GF BITAL

HSBC Holdings PLC
11 December 2002


                          HSBC RE-CAPITALISES GF BITAL

Shareholders meetings took place for Grupo Financiero Bital S.A. de C.V. ("GF
Bital") and its subsidiary Banco Internacional S.A. on 5 December 2002 in
Mexico. At these meetings, HSBC Holdings plc ("HSBC") agreed to subscribe for
additional capital in an amount of up to US$800,000,000, pursuant to a previous
arrangement made with the Mexican banking authorities.

GF Bital's Chief Executive, Sandy Flockhart, said: "This is excellent news for
GF Bital's customers and employees as it strengthens the bank's balance sheet
and provides us with a platform to grow."

HSBC owns 99.59 per cent of the shares in GF Bital, following late submissions
of shares under HSBC's tender offer, which were re-validated by the Mexican
Stock Exchange. The total consideration paid by HSBC for the tendered shares is
therefore US$1,135,343,794.98. HSBC previously announced that it had acquired GF
Bital shares representing 99.21 per cent of the total capital stock of GF Bital.

HSBC considers GF Bital to be an attractive banking franchise and a major and
highly respected force in Mexican financial services with 1,400 branches, 4,000
ATMs and assets of approximately US$22 billion. The acquisition will enable HSBC
to become one of the few banks that can facilitate investment and trade flows
seamlessly amongst the NAFTA countries and internationally.

With some 7,000 offices in 81 countries and territories and assets of US$746
billion at 30 June 2002, the HSBC Group is one of the world's largest banking
and financial services organisations.


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