HSBC to restructure its Islamic Finance Business

***HSBC Group to offer Islamic Finance in Malaysia, Indonesia and Saudi Arabia (through SABB) and global wholesale Islamic Financing/Sukuk products (from Malaysia and Saudi Arabia)***

***Further progress in HSBC’s five filter review ***

17-10-2012 — / — As a result of a strategic review of its Islamic finance business, the HSBC Group (‘HSBC’) today announces that it will focus its Islamic finance offering on customers in Malaysia and Saudi Arabia, and maintain a limited presence in Indonesia. HSBC will continue to offer wholesale Islamic financing/Sukuk products to its global client base through its operations in Malaysia and Saudi Arabia. Following the restructuring, HSBC will retain 83% of the Group’s Islamic business revenues.

In Saudi Arabia, Islamic financial products will be offered through The Saudi British Bank (‘SABB’), in which HSBC Holdings plc indirectly holds a 40% shareholding. HSBC Saudi Arabia Limited, in which HSBC Holdings plc indirectly holds a 49% shareholding, will offer Islamic investments and wholesale Islamic financing/Sukuk products to customers globally. HSBC is the market leader in Sukuk issuance.

The Group will cease to offer Shari’ah compliant products and services in the UK, the UAE, Bahrain, Bangladesh, Singapore and Mauritius, with the exception of wholesale Islamic financing/Sukuk products that will continue to be offered in these jurisdictions and globally through HSBC Saudi Arabia Limited.

This announcement represents further progress in HSBC’s execution of the global strategy set out in May 2011 and demonstrates the Group’s commitment to driving growth and improving returns by restructuring or exiting businesses that do not meet its investment criteria. HSBC remains committed to delivering world-class Shari’ah compliant products and services for customers in Malaysia, Indonesia and Saudi Arabia (through SABB), and Islamic Investments and global wholesale Islamic financing/Sukuk solutions (through HSBC Saudi Arabia Limited).

Media enquiries to:
Tim Doyne
+ 971 4423 5632

Patrick Humphris
+44 (0)20 7992 1631

Hong Kong
Tom Grimmer
+ 852 2822 1268

Investor Relations enquiries to:
Guy Lewis
+44 (0)20 7992 1938

Robert Quinlan
+44 (0)20 7991 3643

Hong Kong
Hugh Pye
+852 2822 4908

Notes to Editors
The HSBC Group’s Islamic finance business in the UK is part of HSBC Bank Plc; the Group’s Islamic finance businesses in the UAE and Bahrain are part of HSBC Bank Middle East Limited; and its Islamic finance businesses in Bangladesh, Singapore and Mauritius are part of the Hong Kong Shanghai Banking Corporation Limited.

HSBC Bank plc
HSBC serves 16.1 million customers in the UK and employs approximately 50,000 people. In the UK, HSBC offers a complete range of personal, premier and private banking services including bank accounts and mortgages. It also provides commercial banking for small to medium businesses and corporate and institutional banking services. HSBC Bank plc is a wholly owned subsidiary of HSBC Holdings plc.

HSBC Bank Middle East Limited
HSBC is the largest and most widely represented international banking organisation in the Middle East and North Africa (MENA), with a presence in 14 countries across the region. HSBC has operations in the United Arab Emirates, Egypt, Qatar, Oman, Bahrain, Kuwait, Jordan, Lebanon, Pakistan, Algeria and the Palestinian Autonomous Area.

In Saudi Arabia, HSBC is a 40% shareholder of Saudi British Bank (SABB), and a 49% shareholder of HSBC Saudi Arabia for investment banking in the Kingdom. In Iraq, HSBC holds a majority shareholding in Dar Es Salaam Investment Bank. HSBC also maintains a representative office in Libya. This presence, the widest reach of any bank in the region, comprises some 273 offices and around 12,000 employees. In the full year 2011, HSBC in the MENA region made a profit before tax of US$1,492m.

The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding and a principal member of the HSBC Group.

HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. The Group serves customers worldwide from around 6,900 offices in over 80 countries and territories in Europe, the Asia-Pacific region, North and Latin America, and the Middle East and North Africa. With assets of US$2,652bn at 30 June 2012, the HSBC Group is one of the world’s largest banking and financial services organisations.



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