HSBC Acquires PCIB Bank

HSBC Hldgs PLC
27 November 2000

        
         HSBC TO ACQUIRE PCIB SAVINGS BANK                       
                     

The Hongkong and Shanghai Banking Corporation Limited today
signed an agreement to acquire 100 per cent of PCIB Savings
Bank (PCIB) from Equitable PCI Bank, Inc for approximately
PHP1.1 billion (US$22 million) in cash.

PCIB was incorporated in the Philippines in 1996. With
assets of PHP1.4 billion (US$28 million) at 30 June
2000, the bank has 16 branches in the metro Manila area and
about 100 staff.

David Eldon, Chairman of The Hongkong and Shanghai Banking
Corporation, said: 'PCIB's branch network provides an
excellent platform for us to expand our personal banking
business. The combination of PCIB's local presence and
HSBC's international reach and expertise will create a bank
that will be able to offer a range of quality personal
financial services to customers in the Philippines.'

The acquisition is expected to be completed by the end of
this year, at which time PCIB will be renamed, subject to
regulatory approval, HSBC Savings Bank (Philippines) Inc. It
will operate as a separate entity from HSBC's existing
operations in the Philippines.

HSBC Savings Bank (Philippines) Inc will focus on providing
financial services to personal and middle-market customers.
HSBC's existing five branches will continue to provide
corporate, commercial and personal financial services to
high-end customers in the Philippines.