HSBC TO OPEN FOUR NEW BRANCHES

Armenpress
Sept 25 2006

YEREVAN, SEPTEMBER 25, ARMENPRESS: HSBC Armenia will open four new
branches this and next years, three in the capital city Yerevan and
one in Armenia’s main airport Zvartnots. In 2007 the bank will have
overall six branches.

HSBC Armenia chief executive officer Anthony Turner told a news
conference today HSBC Armenia’s assets rose from $5 million in 1996
when it opened to $ 170 million now. Seventy percent of shares are
held by HSBC and thirty percent are owned by Diaspora Armenians.

Turner said 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. He said the bank keeps $179 million worth deposits
in Drams.

The majority of clients are economic entities who pay their personnel’s
salaries through banking system.

Armenia is one of 76 countries in which HSBC has its subsidies.