Acquisition of BNL Argentina

HSBC Holdings PLC
24 January 2006


                         HSBC BANK ARGENTINA TO ACQUIRE
                      BANCA NAZIONALE DEL LAVORO ARGENTINA
                                        
HSBC has signed an agreement with Banca Nazionale del Lavoro SpA to acquire the
latter's banking operations in Argentina, Banca Nazionale del Lavoro S.A. (BNL),
for a consideration of US$155 million, to be met from internal resources within 
Argentina.

HSBC Bank Argentina SA has 58 branches throughout the country providing a full
range of banking and financial products and services, including commercial,
consumer and corporate banking, to over 512,000 customers.

BNL started operating in Argentina in 1960 and currently has 91 branches in 18
provinces, 700,000 active personal customers and 26,700 commercial customers,
mainly retail and small and medium-sized businesses.

Simon Martin, CEO and President of HSBC Argentina, said: "This acquisition will
allow HSBC to increase its distribution network and market presence in
Argentina. The size and reach of our combined operations will help us bring
economies of scale to delivering a wide range of products and services to
existing and prospective customers and so contribute to the profitable
development of the financial sector in Argentina."

The transaction is subject to regulatory approval and is expected to be
completed in the first quarter of 2006. After completion, and also subject to
regulatory approval, Banca Nazionale del Lavoro Argentina's operations will be
merged into HSBC Bank Argentina.

Notes to editors:

1. HSBC in Argentina
The HSBC Group has had a presence in Argentina since 1987 when it took a stake
in Banco Roberts SA. In 1997, the Group acquired the remaining stake in the
Roberts Group holding company and re-named it HSBC Argentina Holdings SA.

HSBC Argentina is one of the largest financial organisations in Argentina and
comprises HSBC Bank Argentina, HSBC MAXIMA AFJP, HSBC La Buenos Aires and HSBC
New York Life. The product and service distribution network comprises 99
branches and offices spread across the country.

2. The HSBC Group
HSBC Holdings plc serves more than 110 million customers worldwide through more
than 9,700 offices in 77 countries and territories in Europe, the Asia-Pacific
region, the Americas, the Middle East and Africa. With assets of US$1,467
billion at 30 June 2005, HSBC is one of the world's largest banking and
financial services organisations. HSBC is marketed worldwide as 'the world's
local bank'.

3. Banca Nazionale Del Lavoro SpA
BNL is one of the largest banking groups in Italy and among the top 100 banks in
the world. It has about 700 retail branches throughout Italy and offices in some
15 other countries. The bank caters to the needs of businesses and public
entities with an emphasis on retail and medium-sized corporate clients, offering
commercial banking, asset management, insurance and more.






                      This information is provided by RNS
            The company news service from the London Stock Exchange