Management Changes In HSBC North America

Hamilton, Bermuda: February 22, 2007 -- In an announcement made to the Bermuda Stock Exchange (BSX) HSBC (HSBC.BH) today announced that Bobby Mehta has stepped down as Chief Executive Officer of HSBC North America Holdings Inc. and Chairman and Chief Executive Officer of HSBC Finance Corporation (formerly Household International, Inc.), with effect from 15 February 2007. He has also resigned as a Group managing director, and from the boards of HSBC Bank USA, N.A. and other companies in the HSBC Group.

Mr Mehta joined HSBC Finance Corporation in 1998 and became Vice Chairman in 2004. In March 2005, he was appointed Chief Executive Officer of HSBC North America Holdings Inc. and Chairman and Chief Executive Officer of HSBC Finance Corporation.

Commenting on Mr Mehta's departure, Michael Geoghegan, Group Chief Executive of HSBC Holdings plc, said: "We wish Bobby well. He has made a very significant contribution to a diverse business serving 35 million North American customers and providing some US$9 billion in net profit since we acquired Household International in March 2003 for US$14.8 billion."

Mr Mehta said: "I have had the opportunity to reorganise and redirect the US business and I would like to thank my talented colleagues for their support. I am now ready to pursue more entrepreneurial interests and look forward to this next stage with great anticipation."

Michael Geoghegan announced the following appointments: Douglas Flint, Group Finance Director of HSBC Holdings plc, has also become non-executive Chairman of HSBC Finance Corporation. Mr Flint continues as Group Finance Director of HSBC Holdings plc, a position he has held since 1995.

Brendan McDonagh, currently Chief Operating Officer of HSBC Finance Corporation, has become Chief Executive Officer.