HSBC Bank USA Completes the Acquisition of Chase's Panama Bank Business

Business Wire, August 3, 2000

Business Editors

NEW YORK--(BUSINESS WIRE)--Aug. 3, 2000

HSBC Bank USA has completed the acquisition of The Chase Manhattan Bank's branch operations in Panama, effective 1 August, 2000.

The acquisition, as announced on 2 May 2000, covers Chase's full-service, stand-alone bank business, which includes retail and wholesale capabilities. HSBC will take over 11 full-service branches located as follows: seven branches in Panama City, two branches in Colon City, one branch in David and one branch in Chitre.

At 31 December 1999, Chase's Panama branch operations had approximately US$752 million in assets and US$27 million in net book value.

HSBC has had a presence in Panama since 1972 and currently operates as a full-service branch of HSBC Bank plc, with a strong franchise in corporate business as well as five retail branches. At 31 December 1999, HSBC Panama had total assets of US$477 million.

HSBC plans to file applications with regulatory authorities to transfer ownership of its existing Panama business from HSBC Bank plc to HSBC Bank USA. The combined business will be the largest lender to corporations in Panama and the Colon Free Zone. It will be called HSBC Bank USA Panama Branch.

New York-based HSBC USA Inc. is the 11th largest US bank holding company by total assets and is the holding company for HSBC Bank USA; Republic Bank California, N.A. and the HSBC Group's interest in the Wells Fargo HSBC Trade Bank. HSBC has more than 450 branches in New York, seven branches in Florida, two in Pennsylvania and three in California. For more information about HSBC Bank USA, visit www.banking.us.hsbc.com.

HSBC USA Inc. is an indirectly-held, wholly-owned subsidiary of HSBC Holdings plc (NYSE:HBC), which is headquartered in London. With some 6,000 offices in 80 countries and territories and assets of US$580 billion, as at 30 June 2000, the HSBC Group is one of the world's largest banking and financial services organizations.