HSBC HOLDINGS PLC

Glossary of Terms

Terms used Brief description The Act The Companies Act 1985 (UK) ADS American depositary share AIEA Average interest-earning assets ALCO Asset and liability management committee Amendment Amendment to IAS 39 ‘Financial Instruments: Recognition and Measurement: the Fair Value Option’ Bank of Bermuda The Bank of Bermuda Limited, which was acquired in February 2004 Basel Committee The Basel Committee on Banking Supervision Basel II The Final Accord of the Basel Committee on proposals for a new capital adequacy framework BoC The Bank of Canada BoCom Bank of Communications, China’s fifth largest bank Brazilian operations HSBC Bank Brasil S.A.-Banco Múltiplo and subsidiaries, plus Banco Lloyds TSB S.A. and Losango Promotora de Vendas Limitada CCF CCF S.A., HSBC’s French banking subsidiary ECB European Central Bank ED Exposure Draft EIR Effective Interest Rate EU European Union Federal Reserve The Central Bank of the United States Federal Reserve Board The Board of Governors of the Federal Reserve System FRS Financial Reporting Standard (UK) FSA Financial Services Authority (UK) FTE Full-time equivalent staff numbers GAAP Generally accepted accounting principles GDP Gross domestic product GHOS Hong Kong Government Home Ownership Scheme Global Markets HSBC’s treasury and capital markets services in Corporate, Investment Banking and Markets Group HSBC Holdings together with its subsidiary undertakings Hang Seng Bank Hang Seng Bank Limited, the second largest bank in Hong Kong by market capitalisation HFC Bank HFC Bank plc, the UK-based consumer finance business acquired by HSBC as part of the acquisition of HSBC Finance HNAH HSBC North America Holdings Inc., HSBC’s highest level US bank holding company Hong Kong The Hong Kong Special Administrative Region of the People’s Republic of China Hong Kong Model Code The Model Code for Securities Transactions by Directors of Listed Issuers set out in the Rules Governing the Listing of Securities on the HKSE HSBC HSBC Holdings together with its subsidiary undertakings HSBC Bank HSBC Bank Plc, formerly Midland Bank plc HSBC Bank Argentina HSBC Bank Argentina S.A. HSBC Bank A.S. HSBC Bank A.S., HSBC’s subsidiary in Turkey HSBC Bank Brasil HSBC Bank Brasil S.A.-Banco Múltiplo, HSBC’s retail banking operation in Brazil, formerly Banco Bamerindus do Brasil S.A. HSBC Bank Canada HSBC Bank Canada, HSBC’s Canadian subsidiary HSBC Bank Malaysia HSBC Bank Malaysia Berhad HSBC Bank Middle East HSBC Bank Middle East Limited, formerly The British Bank of the Middle East HSBC Bank USA HSBC Bank USA, N.A., HSBC’s retail bank in the US HSBC Finance HSBC Finance Corporation, formerly Household International, Inc HSBC Holdings HSBC Holdings plc

184 Terms used Brief description HSBC Mexico Grupo Financiero HSBC, S.A. de C.V., the fourth-largest bank in Mexico by deposits and assets HSBC Premier HSBC’s Premium Global Banking Service HSBC Private Bank (Suisse) HSBC Private Bank (Suisse) S.A., HSBC’s private bank in Switzerland (formerly HSBC Republic Bank (Suisse) S.A.) HUB HSBC’s Universal Banking System IAS International Accounting Standard IAS 32 Financial Instruments Disclosure and Presentation IAS 39 Financial Instruments Recognition and Measurement IASB International Accounting Standards Board IFRS 4 Insurance Contracts IMF International Monetary Fund IFRIC International Financial Reporting Interpretations Committee IFRSs International Financial Reporting Standards Losango Losango Promotora de Vendas Ltda, the Brazilian consumer finance company Mainland China The People’s Republic of China excluding Hong Kong M&S Money Marks and Spencer Retail Financial Services Holdings Limited MME Middle market enterprise MSRs Mortgage servicing rights NAFTA North American Free Trade Agreement Ping An Ping An Insurance Company of China Limited, the second-largest life insurer in mainland China, in which HSBC holds a 19.9 per cent stake Repos Sale and repurchase transactions RMB Renminbi, the currency of mainland China S&P 500 Standard & Poor’s index of 500 major stocks in the US SME Small to medium-sized enterprise SEC US Securities and Exchange Commission The Hongkong and Shanghai The Hongkong and Shanghai Banking Corporation Limited, the founding Banking Corporation member of the HSBC Group The Saudi British Bank An associated company of HSBC, incorporated in the Kingdom of Saudi Arabia TSR Total shareholder return UK The United Kingdom UK GAAP UK Generally Accepted Accounting Principles US The United States of America US GAAP US Generally Accepted Accounting Principles VAR Value at risk WTAS Wealth and Tax Advisory Services, Inc.

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