Frequently asked questions

26 May 2021

What the repositioning of the HSBC USA Wealth and Personal Banking business means for our customers, here and abroad

Why did HSBC take this action?

 In February 2020, we set out a plan to shift our business strategy in the to maximize the connection between our clients and our world-class international network.  Our primary business will be a wholesale focused on the international needs of clients.  We are renewing our emphasis on the US$5 trillion international wealth management opportunity from globally mobile and affluent individuals in the United States.

Is HSBC exiting the United States?

 No, HSBC is not exiting its US business.  We aim to be the leading international bank in the United States and are focused on what we do best – connecting Americans to a world of opportunity and bringing cross-border business and investment to the United States.  We will continue to provide banking services not only to our wholesale banking clients, but also to our Premier, Jade and Private Banking customers.

I have personal accounts at HSBC and I’m in the United States. How will these agreements affect me?

 Upon completion of the transactions, the accounts of in-scope customers will be transferred to Citizens or .  We thank those customers for their business and will ensure the transfer occurs with as minimum disruption as possible.  Premier, Jade, Private Banking and other clients who will remain HSBC customers are in the process of being transitioned to one of our new 20-25 Wealth Centers.

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This FAQ is issued by HSBC North America I have personal accounts at HSBC USA and I’m based abroad. How will these agreements affect me?

 Upon completion of the transactions, the accounts of in-scope customers will be transferred to Citizens or Cathay Bank.  We thank those customers for their business and will ensure the transfer occurs with as minimum disruption as possible.  Premier, Jade, Private Banking and other clients who will remain HSBC customers are in the process of being transitioned to one of our new 20-25 Wealth Centers.

My business has a banking relationship with HSBC USA. How will these agreements affect business accounts?

 HSBC remains focused and committed to our Commercial Banking customers including the Business Banking segment (businesses with a turnover of more than US$5 million). These agreements will have no impact to Commercial Banking accounts.  Accounts of Retail Business Banking customers (small businesses with turnover of US$5 million and under) are in-scope and will be transferred to Citizens or Cathay Bank upon completion of the transactions.  HSBC, Citizens or Cathay Bank will be in touch as we progress through this transactions.  Should you have immediate questions please reach out to your HSBC Relationship Manager.

Will there be changes to how I access my balances or lines of credit, or other changes to my HSBC USA accounts?

 At this time there are no changes to how you access your HSBC USA accounts.  HSBC, Citizens or Cathay Bank will be in touch as we progress through this transactions.

Will my local HSBC branch close?

 HSBC retail branches involved in the transactions will remain open for business and will continue to offer all products and services to customers.  Upon completion of the transactions, in-scope branches and customer accounts will transfer to Citizens or Cathay Bank.

Can I do my banking at a branch of Citizens or Cathay Bank now?

 No. There will be no interruption of your banking services with HSBC until the transactions close between Dec 31, 2021 and March 30, 2022, pending regulatory approval.  HSBC, Citizens or Cathay Bank will be in touch as we progress through this transactions.

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This FAQ is issued by HSBC North America What is the impact on my investment or insurance relationships?

 The transactions have no impact on the investment relationships for our qualifying Premier and Jade customers, or our Private Banking customers.  For our customers who are Personal or Advance banking customers, the impact on investment and insurance relationships differs depending upon the geographic region.  For East Coast and online customers, we will operate business as usual for the time being. Citizens will welcome certain investment relationships, and information will be forthcoming as soon as possible. For investments that are not held in your brokerage account, such as annuities, HSBC will remain broker of record.  For West Coast customers, investment and insurance relationships were not included within the transaction with Cathay. We understand that your banking relationship will be transferring, and we will work closely with you to ensure a smooth transition of instructions.  If you have specific questions about your existing investment or insurance relationship with HSBC Securities (USA) Inc. or HSBC Insurance Agency (USA) Inc., you can speak with your HSBC financial consultant who will look to provide the most up to date information possible for your specific area.

When will I become a customer of Citizens or Cathay Bank?

 At this time, we expect transactions to close between Dec 31,2021 and March 30, 2022, pending regulatory approval.  HSBC, Citizens or Cathay Bank will be in touch as we progress through this transactions.  The website about.us..com/movingforward will be updated with information about our progress as we work through the transactions.

What can you tell me about Citizens?

Citizens offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations and institutions. Citizens helps its customers reach their potential by listening to them and by understanding their needs in order to offer tailored advice, ideas and solutions. Catering to the needs of diverse customers starts with listening and understanding, so we can help them on their journey, at every milestone and every twist and turn. In Consumer Banking, Citizens provides an integrated experience that includes mobile and online banking, a 24/7 customer contact center and the convenience of approximately 3,000 ATMs and approximately 1,000 branches in 11 states in the , Mid-Atlantic and Midwest regions. Consumer Banking products and services include a full range of banking, lending, savings, wealth management and small business offerings. In Commercial Banking, Citizens offers a broad complement of financial products and solutions, including lending and leasing, deposit and treasury management services, foreign exchange, interest rate and commodity risk management solutions, as well as loan syndication, corporate finance, merger and acquisition, and debt and equity capital markets capabilities. More information is available at www.citizensbank.com . Citizens Financial Group, Inc. is one of the nation’s oldest and largest financial institutions, with $187.2 billion in assets as of March 31, 2021.

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This FAQ is issued by HSBC North America What can you tell me about Cathay Bank?

Cathay General Bancorp is the for Cathay Bank, a state- chartered bank. Cathay General Bancorp’s website is found at www.cathaygeneralbancorp.com. Founded in 1962, Cathay Bank offers a wide range of . Cathay Bank currently operates 38 branches in California, 10 branches in State, four in State, three in the area, two in , one in , one in , one in , one in , one in , and representative offices in , and . Cathay Bank's website is found at www.cathaybank.com.

How will these agreements benefit me?

 If you will remain an HSBC customer, you can look forward to your bank becoming more focused on what we do best – connecting Americans to a world of opportunity and bringing cross-border business and investment to the United States.  We aim to establish a simpler, more agile and leaner operating model that brings the benefits of HSBC’s global network and expertise, together with holistic servicing and a more seamless cross-border experience for our clients.  At the same time, it was important for us to find buyers who would be a good fit for our customer and employees.  HSBC, Citizens or Cathay Bank will be in touch as we progress through this transactions.

When will these agreements take affect?

 At this time, we expect transactions to close between December 31, 2021, and March 30, 2022, pending regulatory approval.  HSBC, Citizens or Cathay Bank will be in touch as we progress through this transactions.  The website about.us.hsbc.com/movingforward will be updated with information about our progress as we work through the transactions.

Is there anything I need to do now?

 No action is required by our customers at this time.  If and when there comes a time when you need to do something, HSBC, Citizens or Cathay Bank will contact you directly.  The website about.us.hsbc.com/movingforward will be updated with information about our progress as we work through the transactions.

What should I do if I have additional questions?

 The website about.us.hsbc.com/movingforward will be updated with information about our progress as we work through the transactions.

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This FAQ is issued by HSBC North America About HSBC

HSBC USA HSBC Bank USA, National Association (HSBC Bank USA, N.A.) serves customers through retail banking and wealth management, commercial banking, private banking and global banking and markets segments. It operates bank branches in: California; Washington, D.C.; Florida; Maryland; New Jersey; New York; ; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC North America Holdings Inc. In the United States, deposit products are offered by HSBC Bank USA, N.A., Member FDIC, investment and brokerage services are provided through HSBC Securities (USA) Inc., (Member NYSE/FINRA/SIPC) and insurance products are provided through HSBC Insurance Agency (USA) Inc.

HSBC Holdings plc HSBC Holdings plc, the parent company of HSBC, is headquartered in . HSBC serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of US$2,959bn at 31 March 2021, HSBC is one of the world’s largest banking and financial services organisations.

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This FAQ is issued by HSBC North America