HSBC & Banca Profilo re Italy

HSBC Holdings PLC
10 July 2003

                   HSBC'S PRIVATE BANKING OPERATIONS IN ITALY

                        TO BE ACQUIRED BY BANCA PROFILO

HSBC and Banca Profilo SpA have signed a preliminary contract for Banca Profilo
to acquire HSBC Bank plc's private banking operations in Italy for a
consideration of €10.8 million.

The agreement covers the sale by HSBC of its Italian private banking company,
Societa di Gestione del Risparmio, as well as its custodial services unit,
private client funds and assets of the bank's commercial lending unit in Italy.

The private banking operations to be transferred to Banca Profilo include
approximately €866 million of client funds (including €582 million of assets
under management) and €172 million of client lending. HSBC will continue to
support clients following the transfer where they wish to retain access to the
Group's international network, products and services.

The final sale agreement will require authorisation by Banca d'Italia, in
accordance with the requirement of laws 287/90 and 385/93.

Sandro Capotosti, Chairman and CEO of Banca Profilo, remarked: "This transaction
will significantly develop our private banking activities. Banca Profilo looks
forward to maintaining the professional service which these clients demand."

In Italy, HSBC will continue to offer its existing range of corporate banking,
corporate finance, asset management, trade finance, treasury and capital markets
services.

Alessandro Baroni, Chief Executive, HSBC Italy, said: "This sale concludes our
strategy of disposing of our onshore private banking activities in Italy where
it has proved difficult for us, especially in current market conditions, to
generate the necessary economies of scale. HSBC's international network remains
available as necessary to support the needs of Banca Profilo's prospective and
existing private banking clients."

Notes to editors:

1. Banca Profilo

Banca Profilo is an investment bank specialising in private banking and capital
markets with offices in Milan, Rome, Genoa, Reggio Emilia, Pordenone, Turin,
Ferrara, Forli, Piacenza, Brescia, Pistoia and Lugano. Founded in 1988 as a
finance company, Profilo developed into a bank in 1995. Banca Profilo's
shareholding structure comprises: Profilo Holding SpA 27.7 per cent, Capital
Investment Trust SpA 18.9 per cent, Assicurazioni Generali SpA 5.4 per cent,
Premafin Holding Finanziaria SpA (SAI) 4.8 per cent, and other shareholders 3.1
per cent.

2. HSBC Holdings plc

With over 9,500 offices in 80 countries and territories, more than 215,000
employees and assets of US$759 billion at 31 December 2002, the HSBC Group is
one of the world's largest banking and financial services organisations.


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