Bangkok--9 Oct--HSBC HSBC WELCOMES UK GOVERNMENT’S ANNOUNCEMENT HSBC’s UK subsidiary will observe the tier 1 capital ratio requirement, funded from HSBC’s internal resources. HSBC Holdings plc has no plans to utilise the recapitalisation scheme HSBC welcomes the UK government’s proposals to provide liquidity and inject capital into the UK banking system. These are important and necessary steps in restoring confidence to the sector. Consistent with the objectives of the UK scheme announced today, HSBC will ensure that our principal UK subsidiary, HSBC Bank plc, continues to be appropriately capitalised, funded from the Group’s internal resources. HSBC therefore has no current plans to utilise the UK recapitalisation initiative. The HSBC Group supports efforts to stabilise the operation of financial markets and yesterday provided significant amounts of liquidity to the London Sterling interbank market, lending around ?2 billion of three-month and six-month money to other banks. HSBC expects to be very active in the London interbank market again today. HSBC believes its actions will contribute to easing the strain in UK money markets, where the availability of three-month and six-month interbank loans has been very tight in recent weeks. HSBC operates in 85 countries and territories worldwide, including the UK which represented approximately one quarter of our global profits in 2007. With a market capitalisation of US$190 billion (as at 7 October 2008), the HSBC Group is one of the world’s largest financial services organisations. Over 100 million customers worldwide entrust HSBC with US$1.2 trillion in deposits. With a tier one capital ratio of 8.8% and a loan to deposit ratio of 90% as at 30 June 2008, the Group remains one of the most strongly capitalised and liquid banks in the world. Notes to editors: 1. HSBC in Thailand HSBC was established as the first commercial bank in Thailand in 1888. With access to global expertise and enriched local knowledge, HSBC in Thailand provides a full range of financial services including corporate, commercial and institutional banking, global markets, securities services, trade and supply chain, payment and cash management services to corporate customers; personal financial services and credit cards to a growing retail customer base in Thailand. HSBC is globally recognised for its high service standards, ethical practices and full commitment to corporate social responsibilities to benefit the local economy. 2. HSBC Holdings plc or the HSBC Group Headquartered in London, the HSBC Group is one of the largest banking and financial services organisations in the world. The Group’s international network comprises around 9,500 offices in 85 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa, serves over 100 million customers and has assets of US$2,547 billion as at 30 June 2008. The Hongkong and Shanghai Banking Corporation Limited is the founding and principal member of the HSBC Group. Media enquiries to Varanandha Sutthapreeda on 0-2614-4609 or Savittree Muadmuang on 0-2614-4606.