HSBC France to become a shareholder in new French financing company

HSBC France, as a member of the French banking community, together with the other major French banks and the French government, is to invest in a new financing company established at the direction of the French government to support the French economy.

The company will have issued share capital of €50m with each of BNPP, Crédit Agricole, Société Générale, CNCE, Banques Populaires, Crédit Mutuel and HSBC France investing €4.8m for a 9.43 per cent shareholding, and the French government will take the remaining shareholding of 34.0 per cent.

HSBC France has no plans to participate in the French government’s bank recapitalisation scheme.

HSBC France is a subsidiary of HSBC Holdings plc, one of the most strongly capitalised and liquid banks in the world. The HSBC Group has a tier one capital ratio of 8.8 per cent and a loan to deposit ratio of 90 per cent as at 30 June 2008. HSBC France had a tier one ratio of 8.7 per cent at 30 June 2008.