Capital base of HSBC UK strengthened

HSBC Holdings plc has today further strengthened the capital base of its UK subsidiary, HSBC Bank plc, fulfilling its agreed commitment to the UK government’s banking sector scheme announced yesterday, through an equity injection of £750million, representing one per cent of the total shareholders’ equity of the HSBC Group as at 30 June 2008.

The capital injection has been funded from the Group’s own resources.

As previously announced, HSBC has no plans to utilise the UK government’s recapitalisation initiative. With 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, the Group remains one of the most strongly capitalised and liquid banks in the world.

HSBC also continues to support efforts to stabilise the operation of financial markets and over the last three days has provided significant amounts of liquidity to the London Sterling interbank market, lending around £4 billion of three-month and six-month money to other banks. HSBC will continue to support the London interbank market.