Malta Int Directors Statement

HSBC Holdings PLC
19 November 2007

                              HSBC BANK MALTA PLC
                          INTERIM DIRECTORS' STATEMENT

HSBC Bank Malta plc (HSBC Malta) is required to publish the following Interim
Directors' Statement covering the period from 1 July 2007 to 31 October 2007
under Listing Rules 9.51 and 9.53 of the Malta Financial Services Authority.

HSBC Malta has maintained good business growth to date in 2007, continuing the
positive profit and balance sheet trends reported in its first half 2007 results
as reported in the Company Announcement of 30 July 2007.

As at 31 October 2007 both customers' deposits and customers' loans increased
strongly over the prior October end, whilst maintaining a steady and stable
loans to deposits ratio. The core income and profitability levels disclosed in
the first half 2007 results were sustained during this financial period. There
was no deterioration in the quality of credit lending whilst liquidity and
solvency indicators remained sound and ahead of regulatory levels.

During the third quarter, work on major projects has progressed well,
including the adoption of the euro, implementation of SEPA, Basel 2 and 'Chip
and Pin' card functionality.

HSBC Malta continued to work on client-focused initiatives, which improve
customer experience and satisfaction, and on operational processes. The HSBC Group's
second generation Personal Internet Banking and Business Internet Banking
facilities were launched in August improving Direct Channels and making it
easier, and more convenient for customers.

In September, as a further part of the HSBC Group's initiative to 'join up' the
organisation, HSBC Malta participated in the first global product launch by HSBC
- Global Premier - for its high value clients. In addition, HSBC Malta has
utilised the HSBC Group's technology platforms to launch HSBCnet and Global
Links systems for Institutional and Corporate customers to help them with
international business.
                                                                          
Shaun Wallis, Director and Chief Executive Officer, HSBC Bank Malta plc,
commented:

"The Bank continues to deliver on our strategy of building sustainable growth by
focusing on our main customer groups - putting them at the centre of everything
we do. By leveraging the HSBC Group's global expertise, we have increased
business efficiency to support our increased client base and business volumes,
and to reduce our unit costs.

"HSBC Malta has a conservative balance sheet policy with relatively minimal
funding from the wholesale markets, and minimal investment in non-government
securities. Consequently, the uncertainty that has affected international
markets over recent months has had no material impact on our business.

"We remain confident that we can continue to grow the business and revenues and
in a sustainable manner through the remainder of this year."

Notes to editors:

1: This statement is based on the unaudited management accounts of HSBC Bank
Malta plc from 1 July 2007 through 31 October 2007 and other financial
information.

2: HSBC Holdings plc
HSBC Holdings plc serves over 125 million customers worldwide through around
10,000 offices in 83 countries and territories in Europe, the Asia-Pacific
region, the Americas, the Middle East and Africa. With assets of some US$2,150
billion at 30 June 2007, HSBC is one of the world's largest banking and
financial services organisations. HSBC is marketed worldwide as 'the world's
local bank'.



                                 





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