HSBC BANKING GROUP INTENDS TO ENLARGE ITS ACTIVITIES IN ARMENIA

Arka News Agency, Armenia
Sept 25 2006

YEREVAN, September 25. /ARKA/. HSBC banking group intends to enlarge
its activities in Armenia, Stephen Green, the group chief executive,
said Saturday as he met Armenian President Robert Kocharyan in Yerevan,
the president’s press office reports.

The presidential press office also quoted Kocharyan as saying that
HSBC’s credit portfolio started playing a major part in Armenia’s
economy.

HSBC activities were discussed at the meeting as well as prospects
for the bank involvement in Armenia’s insurance market.

HSBC Bank Armenia, whose parent bank is HSBC Bank plc, was registered
on September 25, 1995.

HSBC Bank plc, a branch of HSBC Holdings plc, possesses 70% of HSBC
Bank Armenia shares, and 30% belong to overseas Armenian investors.

Balance profit of HSBC Bank Armenia totaled AMD 4.6 billion by June
30, 2006 and profit for Jan-June 2006 made 1.5 billion. The bank’s
statutory fund is AMD 2.4, assets are AMD 71.5 billion and total
capital is AMD 7.3 billion. Aggregate credit portfolio of HSBC Bank
Armenia was AMD 22.9 billion by June 30, 2006.

From: Emil Lazarian | Ararat NewsPress