HSBC RE: DEMIRBANK

HSBC Holdings PLC
19 July 2001


                      HSBC SUCCEEDS IN BID FOR DEMIRBANK


Further to HSBC Bank plc's announcement on 27 June that it was tendering for
Demirbank TAS, HSBC has received confirmation from the Banking Regulatory and
Supervisory Agency of Turkey (BDDK) that its offer was successful.

HSBC will now enter into final and exclusive discussions over a Sale and
Purchase Agreement. The sale completion and transfer of ownership is expected
to take place before 30 September 2001.

The bank has agreed to purchase the legal entity of Demirbank and has selected
certain assets and liabilities to produce a balance sheet of approximately
US$1.35 billion. HSBC intends to merge this with HSBC Bank A.S. to give a
combined balance sheet of approximately US$2.35 billion and capital of
US$250million.

Demirbank, established in 1953, was the fifth largest private bank in Turkey,
with some 200 branches, US$3 billion in deposits and approximately 650,000
retail customers. It offers a full range of financial services and a modern
multi-channel delivery system including internet, ATMs, and call centres.
Demirbank was taken into administration by the BDDK in December 2000.

HSBC has extensive experience in markets undergoing restructuring, and is
cognisant of the measures taken by the Turkish Government to establish a
comprehensive economic reform programme and to restore stability to the
financial markets. The bank is encouraged by the country's long-term prospects
and looks forward to expanding its presence there through Demirbank.

HSBC has considerable experience in Turkey, where it has run a successful
operation since 1990.