HSBC HOLDINGS TO EXPAND ACTIVITIES IN ARMENIA

ARMINFO News Agency
September 23, 2006 Saturday

President of Armenia Robert Kocharyan received President and CEO of
HSBC Holdings plc. Stephen K.Green and the delegation accompanying
him, Saturday.

The presidential press-service reports the parties as discussing the
activity and plans of HSBC in Armenia, as well as the bank’s entry
into the country’s insurance market.

Robert Kocharyan mentioned that the bank’s credit portfolio has
occupied an important place in the economy of Armenia. At the same
time, he thinks that the banks should further take active steps towards
strengthening of the country’s financial sector. In his turn, Stephen
K. Green said that HSBC Holdings is currently working to expand its
activity in Armenia.

At present, HSBC is Adviser to Greek OTE in the sale of the latter’s
90% stake in ArmenTel company.

According to the ranking of Armenia’s commercial banks prepared by
Arminfo rating service, HSBC Bank Armenia ranks the first in the
country’s banking system with its $170.7 mln assets for June 30 2006.

As to crediting, the bank occupies the third place ($55.6 mln, 33%
of total assets). As to the share of economy crediting in the bank’s
crediting portfolio (over 55%, $30.8 mln), it is in the third place.

The bank is a leader in the market of mortgage crediting – $17.6 mln.

The bank completed the current year with $3,5 mln net profit, taking
the first place in the banking system of Armenia due to this indicator.