HSBC Bank Canada to acquire HSBC Financial Corporation Limited



    VANCOUVER, Aug. 4 /CNW/ - HSBC Bank Canada and HSBC Financial Corporation
Limited have jointly announced that HSBC Bank Canada intends to acquire HSBC
Financial Corporation Limited from HSBC Finance Corporation in the United
States. The planned internal transaction is the result of an ongoing strategic
review of the HSBC Group's North American operations and is expected to close
by the end of 2008, subject to regulatory and Board approvals. All of the
financial guarantees between HSBC Finance Corporation and HSBC Financial
Corporation Limited will remain in place for all debt issued by HSBC Financial
Corporation Limited prior to the closing.
    HSBC Bank Canada had total assets of C$67.4 billion at 30 June 2008 and
net income of C$297 million for the half-year then ended. HSBC Financial
Corporation Limited had total assets of C$5.2 billion at 31 March 2008 and net
income of C$26 million for the first quarter then ended.
    Lindsay Gordon, President and Chief Executive Officer of HSBC Bank
Canada, said: "The HSBC Group has a global strategy of 'Joining up the
company'. As part of this strategy, HSBC Bank Canada will acquire HSBC
Financial Corporation Limited to 'Join up' all members of the HSBC Group in
Canada under one corporate structure. HSBC Bank Canada and HSBC Financial
Corporation Limited are both successful companies and will continue to operate
as separate businesses while sharing best practices as we build the HSBC brand
in Canada."
    HSBC Bank Canada, HSBC Financial Corporation Limited and HSBC Finance
Corporation are subsidiaries of HSBC North America Holdings Inc., which is a
subsidiary of HSBC Holdings plc.

    Notes to editors:

    1.  About HSBC Bank Canada

    HSBC Bank Canada (HSB.PR.C - TSX, HSB.PR.D - TSX), a subsidiary of HSBC
Holdings plc, has more than 180 offices and is the leading international bank
in Canada. With around 10,000 offices in 83 countries and territories and
assets of US$2,354 billion at 31 December 2007, the HSBC Group is one of the
world's largest banking and financial services organizations. For more
information about HSBC Bank Canada and its products and services, visit
hsbc.ca.

    2.  About HSBC Financial Corporation Limited

    HSBC Financial Corporation Limited offers a diversified range of consumer
financial services to the Canadian public through a network of over 100 retail
branches and other distribution channels. These services include consumer
loans, mortgages and private label credit cards. They are offered by the
Corporation through four principal operating subsidiaries: HSBC Finance
Corporation Canada, HSBC Retail Services Limited, HSBC Finance Mortgages Inc.,
and Household Trust Company. For more information about HSBC Financial
Corporation Limited, visit hsbcfinance.ca





For further information:

For further information: Media enquiries to: Ernest Yee, (604) 641-2973;
Sharon Wilks, (416) 868-3878


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