- HSBC Finance Corporation reported financial results for the first quarter of 2007 with net operating income before loan impairment charges of $4.3 billion, up 11% from the first quarter of 2006. - Loan impairment charges were $1.9 billion for the quarter, an increase from $904 million in the first quarter of 2006, driven by portfolio growth and seasoning. - Profit before tax was $900 million, down 42% from $1.6 billion in the first quarter of 2006, with the decline primarily due to higher loan impairment charges as credit trends returned to more normal levels compared to the unusually favorable conditions in 2006.

1. UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report: May 14, 2007
____________________________
Commission file number 1-8198
HSBC Finance Corporation
(Exact name of registrant as specified in its charter)
Delaware 86-1052062
(State or other jurisdiction (I.R.S. Employer
of incorporation) Identification No.)
2700 Sanders Road,
Prospect Heights, Illinois 60070
(Address of principal (Zip Code)
executive offices)
(847) 564-5000
Registrant’s telephone number, including area code
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of
the registrant under any of the following provisions (see General Instruction A.2.below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Solicitation material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 40.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

2. Item 7.01. Regulation FD Disclosure.
This Form 8-K contains slides in Exhibit 99 to be used in a webcast presentation pertaining to the financial results of
HSBC Finance Corporation for the three months ended March 31, 2007. The webcast will occur on May 15, 2007 at
9:00 a.m. (Eastern) and may be accessed at (877) 818-6787 in the United States, 0800.018-0795 in the United
Kingdom and (800) 964-136 in Hong Kong. Replays of the call will be available from 11:00 a.m. (Eastern) on May
15 until 11:00 a.m. (Eastern) on May 22, 2007 and may be accessed by dialing (877) 818-6787 in the United States,
0800 376-9055 in the United Kingdom and (852) 2802-5151 in Hong Kong, with the passcode of 723370.
The information included in the slides with respect to HSBC Finance Corporation is presented on an International
Financial Reporting Standards (“IFRSs”) Management Basis. IFRS is comprised of accounting standards issued by
the International Accounting Standards Board and its predecessor body and interpretations issued by the International
Financial Reporting Interpretations Committee and its predecessor body. IFRS Management Basis results are IFRS
results that assumes that mortgage and private label receivables transferred to HSBC Bank USA, N.A., an affiliate of
HSBC Finance Corporation have not been sold and remain on the HSBC Finance Corporation balance sheet.
HSBC Finance Corporation has filed its Quarterly Report on Form 10-Q for the period ended March 31, 2007
contemporaneously with this Form 8-K. The Form 10-Q is prepared on a U.S. GAAP basis with segment results
prepared on an IFRS Management Basis
Item 9.01. Financial Statements and Exhibits.
(a) Financial Statements of Businesses Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Shell Company Transactions.
Not applicable.
(d) Exhibits
Exhibit No. Description
99 HSBC Finance Corporation IFRS Management Basis 1Q 2007 results.
2

3. SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
HSBC FINANCE CORPORATION
(Registrant)
By: /s/ Patrick D. Schwartz
Name: Patrick D. Schwartz
Title: Vice President and Deputy General
Counsel – Corporate
Dated: May 14, 2007
EXHIBIT INDEX
Exhibit No. Description
99 HSBC Finance Corporation IFRS Management Basis 1Q 2007 results.
3

4. HSBC Holdings plc
Q1 2007 Results
HSBC Finance Corporation
IFRS Management Basis

5. Disclosure Statement
This presentation, including the accompanying slides and subsequent discussion, contains certain forward-looking
information with respect to the financial condition, results of operations and business of HSBC Holdings plc and HSBC
Finance Corporation. This information represents expectations or beliefs concerning future events and is subject to
unknown risks and uncertainties. This information speaks only as of the date on which it is provided. Additional detailed
information concerning important factors that could cause actual results to differ materially is available in the HSBC
Holdings plc Annual Report, and the HSBC Finance Corporation Annual Report on Form 10-K, each for the year ended
31 December 2006. Please further be advised that Regulation FD prohibits HSBC representatives from answering certain,
specific questions during the Q&A session. You may get copies of the HSBC Finance Corporation document referred to
above free by visiting EDGAR on the SEC Web site at www.sec.gov.
These materials do not constitute an offer to sell, or the solicitation of an offer to buy, any security of HSBC Finance
Corporation or any other issuer.
HSBC Holdings plc reports financial results in accordance with International Financial Reporting Standards (“IFRSs”).
IFRSs comprise accounting standards issued by the International Accounting Standards Board and its predecessor body
and interpretations issued by the International Financial Reporting Interpretations Committee and its predecessor body.
All amounts, unless otherwise stated, represents IFRS management basis of accounting.
IFRS Management Basis assumes that the mortgages and private label customer loans transferred to HSBC’s US banking
subsidiary, HSBC Bank USA, N.A. (“HSBC Bank USA”), have not been sold and remain on our balance sheet.
Such customer loans continue to be managed and serviced by HSBC Finance Corporation without regard to ownership.
2

6. HSBC Finance Corporation – Financial Results
US$ M % Change
Q1 2006 Q4 2006 Q1 2007 vs Q1 06 vs Q4 06
Net operating income before $3,898 $4,035 $4,313 11% 7%
loan impairment charges
Loan impairment and (904) (3,208) (1,888) (109%) 41%
other charges
Net operating income 2,994 827 2,425 (19%) 193%
Total operating expenses (1,436) (1,515) (1,525) (6%) (1%)
Profit before tax 1,558 (688) 900 (42%) 231%
Cost efficiency ratio 36.8% 37.5% 35.4% 14bps 21bps
Customer Loans & Advances 168,522 182,520 179,930 7% (1%)
(as at period end)
Note: The figures above are presented on an International Financial Reporting Standards (“IFRS”) Management basis. See Note 11 “Business
segments” of Form 10-Q for the period ended 31 March 2007, for a reconciliation of IFRS to US GAAP
3

7. HSBC Finance Corporation – Financial Results (continued)
• Notwithstanding modest balance sheet contraction, Q107 net operating income before
Q107 Highlights
loan impairment charges was steady compared to Q406.
− Net operating income before loan impairment charges increased 11% over Q106 primarily
driven by 7% loan growth
• Loan impairment charges excluding Mortgage Services, for Q107 compared to Q106
increased as a result of the following:
– Unusually favorable credit environment, extremely low bankruptcies and strong economic
conditions in Q106
– Growth and seasoning of portfolios
• Q107 credit performance in Mortgage Services was in line with expectations and reflects
a deceleration in rate of growth in delinquencies. Actions including the tightening of
credit policy, the discontinuance of Correspondent Channel origination and increased
collection capacity resulted in reduced Mortgage Services loan balances.
• Operating expenses increased 6% compared to Q106 primarily to support loan growth
including higher marketing expenses, investment in co-brand card initiatives and
increased collection activities. Operating expenses were flat compared to Q406.
• Credit Card, Retail Branch and Auto businesses performed well and in line with
expectations.
4

8. HSBC Finance Corporation
• Strategic repositioning of the Mortgage Services business
Recent Strategic Initiatives
− Discontinuation of Correspondent Channel production in Mortgage Services
− Centralization of management of mortgage related business
• Strengthened structure with Chief Operating Officer role extended to cover credit
risk organisation
• Discontinuation of pre-season and pre-file tax products by Taxpayer Financial Services
− Result of on-going review to ensure all products and services offered align with our brand
promise, focused on offering consumers the most value-added products
• Non-binding agreement to sell UK Insurance operations
− Result of continuing evaluation and focus on strategic positioning of core businesses
5

9. HSBC Finance Corporation
US$bn
Profit Before Tax
2.0
1.6
1.4
1.5
1.1
0.9 0.9
1.0
Total
0.5
0.2
0.0 Excluding Mortgage
-0.2
Services
-0.5
Mortgage Services
-0.7
-1.0
-1.5
-1.6
-2.0
Q1 2006 Q4 2006 Q1 2007
• Q106 benefited from unusually favorable credit environment and economic conditions
• Profit before tax excluding Mortgage Services increased over Q406 primarily driven by
strong results in Credit Card business, Retail Branch business and seasonal Taxpayer
Financial Services business
• Lower profit before tax excluding Mortgage Services compared to Q106 primarily
resulting from higher loan impairment charges as credit environment trends towards
more normalised levels
6

10. HSBC Finance Corporation
Loan Impairment Charges
US$bn
3.5
3.2
3.0
2.5
1.9
2.0
1.6
1.6
1.5
1.5
0.9
Total
1.0 0.8
0.4 Excluding Mortgage Services
0.5
0.1
Mortgage Services
0.0
Q1 2006 Q4 2006 Q1 2007
• Excluding Mortgage Services, loan impairment charges were above Q106 but slightly better compared with Q406
• Q106 significantly benefited from a strong economy, benign credit environment and low bankruptcies
7

11. HSBC Finance Corporation
2+ Delinquency Ratio
(%)
6
5.26%
4.76%
5
4.44%
4.43% 4.31%
4.16%
3.95%
4 3.58%
2.68%
3
Total
2
Excluding Mortgage Services
1
Mortgage Services
0
Q1 2006 Q4 2006 Q1 2007
• Delinquency excluding Mortgage Services was stable to previous quarter
• Mortgage Services delinquency ratio increased primarily driven by expected seasoning of portfolio with
declining balances
8
Note: See “Credit Quality” in MD&A of Form 10-Q for the period ended 31 March 2007 for delinquency information reported on a U.S. GAAP basis

12. HSBC Finance Corporation
Real Estate Secured 2+ Delinquency
(%)
7.00
6.65% 2+ Mortgage Services 2nd Lien
5.71%
6.00
2+ Mortgage Services 1st Lien
5.00 4.92%
4.52%
4.00
2.90%
3.00
2.39% 2+ Branch Real Estate Secured
2.21% 2.36%
2.00
1.83%
1.00
Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07
• Actions taken in Mortgage Services have positively impacted rate of growth in delinquencies and results are in line
with expectations
• Continued stable performance of Branch Real Estate Secured portfolio
9

13. HSBC Finance Corporation
Customer Loans & Advances
US$bn
200.0
182.5 179.9
177.5
174.3
168.5
163.8 21.6 21.4
21.5
21.3
160.0 20.9 12.8
20.8 12.9
12.7
12.4
12.1 20.6
11.9 19.5
19.3
19.0
18.4
19.7
120.0
28.3 28.0
26.3
25.7
24.7
25.8
80.0
46.2 49.7
44.4 51.5
43.1
41.3
40.0
51.5 51.5
49.3 49.5 46.6
44.3
0.0
Q4 05 Q1 06 Q2 06 Q3 06 Q4 06 Q1 07
Mortgage Services Branch Real Estate Secured Credit Cards Private Label Cards Motor Vehicle Finance Other
• Strategic reduction in Mortgage Services loan portfolio offset by steady to increasing growth in all other
HSBC Finance businesses
– In March 2007, we announced our decision to discontinue Correspondent Channel acquisitions
– Growth considering seasonality, in other businesses reflects the strength of the diversified finance business
10

14. Mortgage Services
Loans by vintage and type
December 2006 March 2007
2nd Lien ARM
US$3.0bn US$2.6bn
56% 33% 4% 7% 7% 4% 32% 57%
2nd Lien Fixed
US$7.1bn US$6.6bn
50% 41% 4%5% 10% 3% 38% 48% 1%
1st Lien ARM
US$24.1bn US$21.6bn
7% 7% 12% 40% 40% 1%
37% 42% 14%
1st Lien Fixed
31% 24% 27% 18%
US$15.3bn US$15.8bn
20% 20% 21% 33% 6%
100 (%)
100 80 60 40 20 0 20 40 60 80
= US$49.5bn = US$46.6bn
Pre 2004 2004 2005 2006 2007
11

15. Mortgage Services Loans – Vintages
US$bn
Vintages US$bn
December 2006 March 2007
2007 1.2
2006 18.9 18.8
2005 17.8 15.4
2004 7.8 6.2
Pre 2004 5.0 5.0
49.5 46.6
• Substantial paydown of 2005 vintages has occurred during the quarter and reflects
actions taken within the Correspondent Channel
12

16. HSBC Finance Corporation
• US economic conditions, particularly unemployment levels, bankruptcy filings, housing
Ongoing Areas of Focus
market and interest rates
• Impact of adjustable rate mortgage resets
• Seasoning of loan balances, including Credit Card vintages originated in Q406
13