HSBC Payment of Dividends

HSBC Holdings PLC
01 October 2002

                               HSBC HOLDINGS PLC

            PAYMENT OF DIVIDENDS IN UNITED STATES DOLLARS, STERLING

                              OR HONG KONG DOLLARS

On 5 August 2002, the Directors of HSBC Holdings plc declared a first interim
dividend for 2002 of US$0.205 per ordinary share. The dividend is payable on 9
October 2002 to shareholders on the Principal Register or Hong Kong Overseas
Branch Register at close of business on 23 August 2002 in cash in US dollars,
sterling or Hong Kong dollars, or a combination of these currencies and with a
scrip dividend alternative.

In the absence of instructions to the contrary, shareholders on the Principal
Register will automatically receive dividends in sterling. Shareholders on the
Hong Kong Overseas Branch Register will automatically receive dividends in Hong
Kong dollars.

Dividends payable in cash in sterling or Hong Kong dollars will be converted
from US dollars at the forward exchange rates quoted by HSBC Bank plc in London
at 11.00 am on 1 October 2002 (US$1 = HK$7.79935 and £1 = US$1.57285).
Accordingly, the amount payable on 9 October 2002 will be:


                US$0.205 per share;

                approximately HK$1.598867 per share; or

                approximately £0.130337 per share.

The dividend payable to holders of American Depositary Shares ('ADSs'), each of
which represents five ordinary shares, will be US$1.025 per ADS. The dividend
will be paid in cash in US dollars on 9 October 2002 or, for participants in the
dividend reinvestment plan operated by the depositary, will be invested in
additional ADSs.



R G Barber

Group Company Secretary

HSBC Holdings plc




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