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HSBC Holdings PLC (HSBA)

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Wednesday 26 February, 2003

HSBC Holdings PLC

HSBC - Household Int'l Acq'n

HSBC Holdings PLC
26 February 2003


                           HSBC Holdings plc ("HSBC")

       Proposed acquisition of Household International, Inc ("Household")

                   Filing of Final Proxy Statement/Prospectus

In connection with the proposed acquisition of Household, HSBC has today filed
with the Securities and Exchange Commission in Washington DC ("the SEC") a final
prospectus of HSBC relating to the issuance of ordinary shares and American
depositary shares representing ordinary shares in the acquisition, which final
prospectus is also a final proxy statement of Household in connection with the
special meeting of Household.

Copies of this final proxy statement/prospectus will be available on the SEC
website at www.sec.gov/edgar.shtml under HSBC's company filings. The final proxy
statement/prospectus includes Summary Listing Particulars of HSBC which have
been authorised for issue today by the UK Listing Authority ("the UKLA"). HSBC
has also today published a Circular ("the Circular") relating to the acquisition
of Household and Listing Particulars.

Copies of the final proxy statement/prospectus, the Circular and the Listing
Particulars have been submitted to the UKLA and will shortly be available for
inspection at the UKLA Document Viewing Facility, the address of which is given
at the end of this announcement. These documents will also be available on
www.hsbc.com. They include comments on Current Trading and Prospects as follows:

* The benefits derived from the breadth and capital generating strength of the
HSBC Group's core domestic franchises continue to support resilient operating
performance, including into the current year to date.

* In retail markets, continuing weak demand for equity products has been more
than offset by strong growth in personal lending and mortgage banking as
consumers in some markets respond to sustained low interest rates. Deposit flows
remain strong and sales of insurance protection products and capital protected
investment products continue to grow.

* Lending to the corporate sector remains subdued and as a consequence of
successive interest rate reductions over the past 24 months, treasury income is
declining as maturing investments are redeployed in lower yielding assets.

* Mitigating the impact of lower interest rates on the deployment of the HSBC
Group's liquid resources, the continuing low interest rate environment is
favourable in maintaining bad debt charges within recent experience.

* The HSBC Group remains cautious about the economic outlook for the remainder
of the current year, with political factors and external events weighing heavily
on economic forecasting. This having been said, the HSBC Group remains strong in
capital and earning power and is well positioned to seek growth opportunities
globally with few geographic or product constraints.

The Circular is expected to be posted to shareholders of HSBC as soon as
practicable and contains a Notice of an Extraordinary General Meeting to be held
at 11:00am on 28 March 2003 at Cabot Hall, Cabot Place West, Canary Wharf,
London E14 5AB at which an ordinary resolution will be proposed for the approval
of the acquisition of Household. A copy of the form of proxy for use at the
Meeting has also been submitted to the UKLA and will shortly be available for
inspection at the UKLA Document Viewing Facility.

On 3 March 2003 HSBC will announce its results and publish its Report and
Accounts for the year ended 31 December 2002.

The UKLA document Viewing Facility is situated at:

Financial Services Authority

25 The North Colonnade

Canary Wharf

London E14 5HS

Tel: 00 44 (0) 20 7676 1000


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

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