HSBC BANK ARMENIA PAYS AMD 1.9BLN DIVIDENDS IN 2006

Arka News Agency, Armenia
April 6 2007

YEREVAN, April 6. /ARKA/. HSBC Bank Armenia paid AMD 1.9bln (about
5.2mln) dividends in 2006.

Ruzanna Shahinyan, the bank financial director, told journalists on
Thursday that AMD 1.4bln ($3.8mln) of this amount were dividends paid
as a result of the bank’s activity in 2005.

She said the remaining 500 million or $1.3mln is interim amount
for 2006.

Shahinyan said the bank intends to enlarge its profit to $13 to
14mln in 2007. It means 60% of this amount should be targeted for
paying dividends.

In her words, the bank started paying dividends in 1995 and now
dividend payment totaled $21mln.

Tony Turner, general executive director of HSBC Bank Armenia, in
turn, said that dividends payment policy topped the agenda of the
bank shareholders’ session.

"It was decided to pay dividends equal to a half of profit gained
before taxation", he said.

HSBC Bank Armenia was registered on September 25, 1995. 70% of the
bank’s stakes belong to HSBC Holdings plc and 30% to Armenian overseas
investors.