The document provides an overview of HSBC, including: 1) HSBC has a history of steady dividend and earnings per share growth over the past decade. 2) It has a global presence with over 9,500 offices in 76 countries, allowing it to serve customers around the world. 3) HSBC focuses on growing its business organically and through small, strategic acquisitions that fit its overall strategy and improve earnings.

1. The World’s Local Bank
Morgan Stanley Asia Pacific Summit 2006
Singapore -November 2006

2. Forward-looking statements
This presentation and subsequent discussion may contain certain forward-
looking statements with respect to the financial condition, results of operations
and business of the Group. These forward-looking statements represent the
Group’s expectations or beliefs concerning future events and involve known
and unknown risks and uncertainty that could cause actual results,
performance or events to differ materially from those expressed or implied in
such statements. Additional detailed information concerning important factors
that could cause actual results to differ materially is available in our Annual
Report.

3. History of dividends and earnings per share
US cents DPS
160 A record of growth
EPS
140 %
15
+
S
120 EP
Asian crisis Argentinean crisis R
100 G
CA
%
25
80 +
S
EP
60
40
20 DPS1
16% CAGR
0 1995-2005
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
UK GAAP (excl goodwill amortisation) IFRS
Source: HSBC Securities
(1) DPS are in respect of periods shown above

4. Total shareholder return
15 years, 25% CAGR 2 years, 13% CAGR
Long term share
HSBC Total Shareholder Return HSBC Total Shareholder Return price performance
3000 135 reflects successful
130 growth of the
2500
business
125
2000
120
1500 115
110
1000
105
500
100
0 95
Apr 05
Apr 06
Aug 04
Jun 04
Sep 04
Nov 04
Feb 05
Jun 05
Sep 05
Nov 05
Feb 06
Jun 06
May 93
Feb 97
Nov 00
Jun 06
Jun 91
Mar 95
Dec 98
Sep 02
Source: HSBC Securities

5. Improving capital efficiency
24% annualised return
Against the first half of
US$ billion from additional US$9bn %
2005, average invested
110 of capital 20 Average invested
capital increased by 9
capital employed
(US$bn) billion US dollars and
Return on invested return on capital
capital (% ) improved by 0.7 per cent
100 15 to 17.2 per cent. This
Tier 1 ratio (% ) implies a 24 per cent
annualised return on the
incremental capital
invested and evidences
90 10
our focus on strong
organic growth
This took place without
80 5 leveraging our capital
further; indeed, our
capital ratios
strengthened, with the
Tier 1 ratio at 9.4 per cent
70 0
1H04 2H04 1H05 2H05 1H06
Source: HSBC Securities

6. Our businesses – building for sustained growth
Prioritisation of investment
0
Harvest Singapore Grow Where are we
20
Bermuda investing?
Cost efficiency ratio1
Mexico
Malaysia
Hong
Kong
Argentina3
UAE
Countries in the
40 US
50.1%2 Malta bottom right
India
60
Turkey
UK
Brazil corner because
France Mainland China they have higher
Germany
80 than average
Canada Europe Private
Banking
growth
Re-engineer 14.8%2 Invest
100
(40) (20) 0 20 40 60 80
Revenue growth1
Source: HSBC Securities
Note: Size of circle represents profit contribution
(1) including Corporate, Investment Banking and Markets
(2) Group average figure
(3) Argentina circle has been adjusted to exclude pesification impacts

7. Major acquisitions in last 5 years
Acquisition cost Pre-tax profit H106 These is no need for a
transformational
2001 Demir Bank1 (Turkey) US$425m US$120m
acquisition but
2002 Bital2 (Mexico) US$2.3bn US$515m opportunities for
2003 Household3 US$16.4bn US$2.8bn4 incremental acquisitions
which extend our
2004 Bank of Bermuda US$1.2bn n/a customer base or provide
key product capabilities
will be considered
And strategic stakes in China
2002/5 Ping An 19.9% Acquisitions must fit into
• Substantial increase in value of
our overall business
2004/5 Bank of Communications 19.9% stakes(US$4.0bn to US$10.9bn) strategy
• Leading foreign bank in China
They must be Earning per
Share accretive in the
first full year and to
exceed the Group’s cost
of capital within an
acceptable time frame (3 -
Source: HSBC Securities 4 years)
(1) Demir Bank and Benkar
(2) Bital, Seguros and Afore Allianz Dresdner
(3) Household and Metris
(4) HSBC Finance Corp, IFRS Management Basis, Form 8-K

8. Our global distribution – Our global advantage
The HSBC Group
has 284,000
employees and
over 9,500 offices
in 76 countries and
territories
To be added with Grupo Banistmo S.A.

9. Strength of operating franchise by geography
Profit before tax
1H05 3% 1H06 3%
27% Europe 29%
35% Hong Kong 34%
Rest of Asia Pacific
North America
23% South America 21%
12% 13%
US$10.6bn US$12.5bn
Growth in profit, 1H06 vs 1H05
Europe +25
Hong Kong +10
Rest of Asia-Pacific +29
North America +15
South America -2
Group +18
(5) 0 5 10 15 20 25 30 (%)

10. Strength of operating franchise by customer group
Pre-tax profits
1H05 1H06
4% 3% 5%
Personal Financial Services
23%
22% Corporate, Investment Banking and Markets
47%
49% Commercial Banking
Private Banking
22% Other 25%
US$10.6bn US$12.5bn
Growth in profit, 1H06 vs 1H05
Personal Financial Services +13
Corporate, Investment Banking and Markets +37
Commercial Banking +21
Private Banking +33
Group +18
0 5 10 15 20 25 30 35 40 (%)

11. Personal Financial Services
1H06 vs 1H05
US$ millions 1H05 2H05 1H06 % change Underlying
% change1
Net operating income before
loan impairment charges 16,325 17,399 18,517 +13 +10
Loan impairment and other (charges) (3,163) (4,374) (3,709) +17 +12
Net operating income 13,162 13,025 14,808 +13 +10
Total operating expenses (8,029) (8,398) (9,703) +13 +10
Profit before tax 5,219 4,685 5,908 +13 +10
Cost efficiency ratio2 49.2% 48.3% 49.0%
• Strong growth in deposit gathering in the US, UK and Rest of Asia-Pacific
• US and UK lending grew strongly, particularly in mortgages with Rest of Asia-Pacific strong
across the board
• We invested to improve our distribution network in the UK, US, Mexico and Mainland China
• Credit quality remained generally good
(1) Constant currency excluding acquisitions
(2) Total operating expenses/Net operating income before loan impairment charges

12. Personal Financial Services
Strategic approach Global initiatives
• Deliver an increasing rate of revenue growth • Premier re-launch – provision of best in
by building a world class ethical sales and class proposition for mass affluent customer
service culture with unique international capabilities
• Drive growth in key markets and right • Core product simplification and delivery re-
channels to make HSBC the strongest global engineering
PFS player
• P2G/Multichannel infrastructure – provision
• Focus investment – markets of web based technology facilitating high
– Focus on markets with size/growth potential quality sales service across all channels
– Anticipate & tap demographics
• Retail design-development of modern
– Creating value through customer segmentation customer friendly design standards
and targeted propositions
– Channel mix/flexibility aligned to customer • HUB R2 – provision of high quality
behaviour relationship banking system
– Build a pool of world class talent
– Be a low cost producer on a global basis
– Proactively identify and progress limited size
strategic acquisitions and disposals

13. HSBC’s unique PFS capabilities
• Global distribution reach:
– 6,500 PFS branches in 42 countries
– 16,500 ATMs, processing 68 transactions per second
– Customers in >200 countries serviced via call centres and on-line
– Over 110 million PFS customers including >60 million consumer finance customers
– 1.7 billion visits annually to HSBC internet sites
– Personal deposits and current accounts of over US$355bn
• Brand: strong values and shared culture
• Financial strength and geographic spread
• ‘Best Consumer Internet Bank’ in the global awards by Global Finance
• Common systems: low cost; sharing of successful innovations
• Technical skills: consumer risk management; direct banking
• Sharing best practice globally

14. Commercial Banking
1H06 vs 1H05
US$ millions 1H05 2H05 1H06 % change Underlying
% change1
Net operating income before
loan impairment charges 4,669 5,115 5,363 +15 +15
Loan impairment and other (204) (343) (260) +28 +27
Net operating income 4,465 4,772 5,103 +14 +15
Total operating expenses (2,180) (2,273) (2,385) +9 +10
Profit before tax 2,374 2,587 2,862 +21 +21
Cost efficiency ratio2 46.7% 44.4% 44.5%
• Revenue growth driven by deposits and lending and credit quality remained good.
The cost efficiency ratio fell a further 2.2 percentage points to 44.5%
• Much of this reflects the good progress we are making in establishing HSBC as the
international business bank
• Our focus is on organic growth capitalising on the wealth of experience in our
business
(1) Constant currency excluding acquisitions
(2) Total operating expenses/Net operating income before loan impairment charges

15. Commercial Banking
Strategic approach Our unique commercial franchise
• Seamless support for businesses from • 2.6 million customers – over 45% of
sole traders to the top mid-caps whom require international banking
• Leverage our extensive distribution services
network for business growth
• Over 6,400 relationship managers and
• Tailor our service offering to the needs operations in 55 countries and territories
and wants of our customer base
worldwide
• Tight cost discipline balanced by
strategic investment • Focused where growth opportunities are
the greatest and expanding our footprint
• Invest in technology to develop strong,
flexible systems that enhance our • Positioned to capitalise on the growth of
international capabilities trade flows and entrepreneurial activity
• Attract, retain and motivate the best
talent and provide them with an • Our unique focus CMB allows us to truly
unrivalled international network value the difference in business

16. Corporate, Investment Banking and Markets
1H06 vs 1H05
US$ millions 1H05 2H05 1H06 % change Underlying
% change1
Net operating income before
loan impairment recoveries 5,415 6,042 6,751 +25 +26
Loan impairment recoveries 77 195 109 +42 +44
Net operating income 5,492 6,237 6,860 +25 +27
Total operating expenses (3,311) (3,527) (3,740) +13 +15
Profit before tax 2,301 2,862 3,144 +37 +37
Cost efficiency ratio2 61.1% 58.4% 55.4%
• Returns on the investment we have made in our CIBM business improved
dramatically in our results for the first half
• Profit before tax grew by 37% on an underlying basis with positive revenue trends in
key areas of investment. Cost growth slowed as we moved into the execution phase
of our 5-year strategy and was concentrated in performance-related pay and in
supporting volume growth in Global Transaction Banking
(1) Constant currency excluding acquisitions
(2) Total operating expenses/Net operating income before loan impairment charges

17. Corporate, Investment Banking and Markets
• CIBM is an integral and strategic part of a powerful and CIBM acts as a wholesale
well established universal banking group and leverages product provider to other
HSBC’s strong client franchise in key developed and customer segments within the
emerging market geographies Group, building on our wide
commercial, personal and
– Over two-thirds of the Fortune 500 global list are customers of the
private banking footprints
Group
– In-country operations in over 60 of the Group’s 76 locations CIBM manages the market risk
created by the Group’s
• CIBM is already a leading wholesale bank with world class
diversified businesses and the
businesses in many areas Group’s liquidity
– Best at treasury and risk management in Asia every year since
1998¹ The build programme is
generating growth in earnings
– Global Top 5 in international bond underwriting in 2005²
in key product areas where
– Global Top 5 in foreign exchange¹ HSBC has invested
– No.1 for foreign exchange in London¹
The rate of cost growth peaked
– No.1 sub custodian, Asia & Middle East³
during 2005 as the investment
– Best at cash management and best at trade finance in Asia³ phase of the CIBM plan neared
– Global No.2 Islamic bonds2 completion
Source: (1) Euromoney 2005 (2) Bloomberg League tables 2005 (3) Global Finance 2005

18. Corporate, Investment Banking and Markets
The strategic focus
• Build a financing (and emerging markets) led wholesale bank
through
– Roll out of our successful Asian hub/spoke model to EMEA and the
Americas to provide expansion of distribution in key emerging market
geographies enabling us to leverage the investment in product
development
– Enhancement of the product suite to grow our capabilities in structured
derivatives, fixed income and equities
– Build out of our debt and equity capital markets presences
– Build out of targeted advisory platform
– Creation of market leading e-delivery platforms
– More efficient use of the Group’s balance sheet
– Positioning the Investment Businesses to best leverage Group strengths

19. Private Banking
1H06 v 1H05
Underlying
(US$ millions) 1H05 2H05 1H06 % change % change1
Net operating income before loan impairment charges 1,162 1,204 1,460 +26 +27
Loan impairment and other (charges) / recoveries 12 - (29) n/a n/a
Net operating income 1,174 1,204 1,431 +22 +24
Total operating expenses (723) (743) (831) +15 +16
Profit before tax 451 461 600 +33 +35
Cost efficiency ratio2 62.2% 61.7% 56.9%
• Continued the success of transforming the business
• Strong growth in client assets and lending
• Strong improvement in operational efficiency
• Increased cross-referrals from within the Group
(1) Constant currency excluding acquisitions
(2) Total operating expenses / Net operating income before loan impairment charges

20. Information Technology:
being the low cost producer
2005 actual (US$4,413m) 2006 plan (US$4,810m) 2007 plan (US$4,990m)
2% 8% 1% 11% 1% 12%
4%
5%
7%
50% 48%
52%
34%
33%
32%
Group Systems - Gold Group Systems Regional Implementation
Regional Development IT Operations
Other

21. Optimal investment in IT
22% Enabling increased efficiency
• This graph benchmarks HSBC
Overspending
against our global competitors
• Optimal positioning is to the left of
20%
Straight Through Processing (STP)
the graph to decrease the cost
ratio. The vertical axis, shows
how operating cost reduces with
IT cost/Operating cost
18%
technology
Desired range
• As technology expense as a
16%
HSBC 2005 percentage of operating expense
improves, operating expenses
drop significantly by deploying
14%
technology or driving more
HSBC products through the same size of
12%
1H06 an operation
Efficient IT Unexploited efficiency potential • HSBC is clearly focused on IT
Median
investments to reduce operating
10%
45% 50% 55% 60% 65% 70% 75% 80% expenses via automation
Cost/income ratio

22. HSBC Finance Corporation
IFRS Management Basis (A Non-GAAP Measure)
Customer Loans
Sep 06
Increase/(Decrease) %
($ millions) Sep 06 June 06 Mar 06 Dec 05 Sep 05 June 06 Mar 06 Dec 05 Sep 05
Branch Real Estate Secured $46,157 $44,430 $43,062 $41,341 $40,345 4% 7% 12% 14%
Correspondent Real Estate Secured 51,543 51,446 49,330 44,297 41,239 0 4 16 25
Real Estate Secured¹ 97,700 95,876 92,392 85,638 81,584 2 6 14 20
MasterCard/Visa Credit Cards 26,318 25,676 24,740 25,819 22,605 3 6 2 16
Private Label Cards 19,330 19,057 18,402 19,656 18,706 1 5 (2) 3
Motor Vehicle Finance 12,663 12,417 12,113 11,911 11,628 2 5 6 9
Unsecured Personal Lending & Other 21,487 21,313 20,875 20,778 20,302 1 3 3 6
Total Customer Loans $177,498 $174,339 $168,522 $163,802 $154,825 2% 5% 8% 15%
(1) Real Estate Secured includes residential first mortgages (first lien) and second lien lending products

23. HSBC Finance Corporation
IFRS Management Basis (A Non-GAAP Measure)
Correspondent Real Estate Secured Loans by Lien Position
Sep 06
Increase/(Decrease) %
($ millions) Sep 06 June 06 Mar 06 Dec 05 Sep 05 June 06 Mar 06 Dec 05 Sep 05
Residential First Mortgages $40,428 $40,125 $39,094 $36,276 $34,942 1% 3% 11% 16%
Second Lien 11,115 11,321 10,236 8,021 6,297 (2)% 9% 39% 77%
Total Loans by Lien Position $51,543 $51,446 $49,330 $44,297 $41,239 0% 4% 16% 25%
Composition of Correspondent Real Estate Secured Loan Portfolio at 30 Sep 06 by period of purchase
Q3 06 H1 06 H2 05 H1 05 2004 and prior Total
Residential First Mortgages 6% 17% 26% 13% 38% 100%
Second Lien 4% 32% 39% 14% 11% 100%
Total Loans by Period of Purchase 6% 20% 29% 13% 32% 100%

24. HSBC exposure to UK consumer
HSBC Group Personal Lending
(US$448bn)
26%
UK
UK Personal Lending Rest of
(US$118bn) Group
74%
36%
Residential mortgages
Other personal
unsecured
64%

25. One of the world’s
leading brands for
customer
experience and
corporate
responsibility
Progressive
HSBC now ranked
Perceptive No. 28 by Interbrand
Responsive
Respectful Highest mover in
top 40. Absent from
Fair
top 100 in 2002

26. Our main focus –
Joining up the company for our customers
Businesses
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