HSBC HOLDINGS PLC

Glossary of Terms

Terms used Brief description ABC Asset-backed conduits ADS American depositary share AICPA The American Institute of Certified Public Accountants AIEA Average interest-earning assets ALCO Asset and liability management committee ASB Accounting Standards Board (UK) 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 BBCs Business banking centres BOC The Bank of Canada CCF CCF S.A., HSBC’s French banking subsidiary CIBM HSBC’s Corporate, Investment Banking and Markets customer group CMB HSBC’s Commercial Banking customer group Consumer Finance HSBC’s Consumer Finance customer group, comprising Household International’s consumer finance business and the US residential mortgages acquired by HSBC Bank USA from Household International and its correspondents since December 2003 CPI Consumer price index EITF Emergent Issues Task Force (US) ESOP Employee share option plan EU European Union FASB Financial Accounting Standards Board (US) FRS Financial Reporting Standard (UK) FSA Financial Services Authority (UK) FSP FASB Staff Position issued by the FASB (US) FTE Full-time equivalent staff numbers FUM Funds under management 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 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 Household Household Consumer Finance plus the insurance and commercial banking operations of Household International Household International Household International, Inc., the US consumer finance company acquired in March 2003 HSBC Bank HSBC Bank plc, formerly plc HSBC Bank Argentina HSBC Bank Argentina S.A. HSBC Bank Brazil HSBC Bank Brasil S.A.-Banco Múltiplo, HSBC’s retail banking operation in Brazil, formerly Banco Bamerindus do Brasil S.A. HSBC Bank HSBC Bank Malaysia Berhad HSBC Bank HSBC Bank Middle East Limited, formerly The British Bank of the Middle East

156 Terms used Brief description HSBC Bank USA HSBC Bank USA, Inc, HSBC’s retail bank in the US. From 1 July 2004, HSBC Bank USA, N.A. HSBC Mexico Grupo Financiero HSBC, S.A. de C.V. (formerly Grupo Financiero Bital, S.A. de C.V.), the fifth-largest bank in Mexico by deposits and assets HSBC Private Bank (Suisse) HSBC Private Bank (Suisse) S.A., HSBC’s private bank in Switzerland (formerly HSBC Republic Bank (Suisse) S.A.) IAS International Accounting Standard IFRS International Financial Reporting Standard IGU Income generating unit IPO Initial public offering IT Information technology Losango Losango Promotora de Vendas Ltda, the Brazilian consumer finance company acquired in December 2003 MMEs Middle market enterprises MSRs Mortgage servicing rights PFS HSBC’s Personal Financial Services customer group Ping An Ping An Insurance Company of China Limited, the second-largest life insurer in mainland China, in which HSBC holds a 10 per cent stake PVBP Present value of a basis point Repos Sale and repurchase transactions SARS Severe acute respiratory syndrome SAYE Save As You Earn SFAS Statement of Financial Accounting Standards (US) SIS Strategic Investment Solutions product offered by Private Banking SME Small to medium-sized enterprise SOP Statement of Position issued by the AICPA (US) SSAP Statement of Standard Accounting Practice (UK) The Hongkong and Shanghai Banking The Hongkong and Shanghai Banking Corporation Limited, the founding Corporation member of the HSBC Group TSR Total shareholder return UITF Urgent Issues Task Force (UK) UK United Kingdom UK GAAP UK Generally Accepted Accounting Principles US United States of America US GAAP US Generally Accepted Accounting Principles VAR Value at risk VIEs Variable interest entities

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