AFSA Finance Industry Conference for International Fixed-Income Investors London 4-6 May, 2010

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. Past performance cannot be relied on as a guide to future performance.

3. The HSBC GroupOverview

4. Financial overviewSummary of reported results

5. Capital strengthEnhanced through capital generation and rights issue

6. Managing balance sheet riskMovement in Group consolidated assets

7. Funding and liquidityPrudent position maintained with advances-to-deposits ratio at 77.3%

8. Simplified structure chartShowing some of the principle entities

9. StrategyDelivering superior growth and earnings over time

10. BenchmarksKey performance indicators

11. HSBC Finance Corporation

12. Update on HSBC Finance Strategy Business is currently comprised of: Active credit card business Run-off portfolio Have Taken Decisive Action: Exiting certain businesses Consumer Lending Mortgage Services Auto Finance Leading home preservation efforts

13. Update on HSBC Finance Strategy Focused On Managing What We Can Control: Risk Underwriting Changes Closure of Businesses Balance Sheet Management Leveraging funding from bank affiliates Reducing balance sheet to manage capital needed from Group Maximizing cash generation to repay debt Cost Management Continuing focus on expenses Optimizing shared services across North America Using Cards skill set to develop cards businesses in other parts of the Group People Developing talent and exporting talent across the globe Retaining key people while allowing work force to shrink as run-off book declines

14. Update on HSBC Finance Strategy Environmental Factors We Cannot Control: Home price depreciation Unemployment Legislation/Regulatory Landscape 

15. Core Business � Card and Retail Services Customer Loans: $38.8 bn (1) at 12/31/09 (credit card: $23.2 bn; private label : $15.6 bn) Over two-thirds of portfolio is now funded by HSBC Bank USA, leveraging core deposits Business continues to be profitable Subprime has performed better relatively speaking than prime Strategic Initiatives: Continue integration of Cards into a global business line. Systems platform already global. Continue to review risk issues- geography, mortgage holders, unemployment, and mix between subprime and prime Restarted mailings in subprime Renegotiated all significant private label contracts to improve risk-adjusted profitability; exited 47 retail partnerships.  (1) IFRS management basis

16. Run-off Portfolio � Consumer Lending Announced in March 2009 we would discontinue all originations. Have closed all of the HFC and Beneficial branch network. Receivables � 12/31/09 (1) Real estate secured: $39.6 bn Personal non-credit card: $10.5 bn Runoff of RE portfolio has been slightly slower than anticipated due to higher modifications and fewer refinancing opportunities. Credit quality of loans originated in 2005 and earlier has begun to stabilize Strategic Initiatives: Focus on collections and default management strategies Utilize appropriate modification and other account management programs to maximize collections and home preservation. Approximately 51% of our real estate secured portfolio (CL and MS) has been modified and/or reaged at 12/31/09. Approximately 62% of all loans modified and/or reaged (CL and MS) since January 2007 are less than 60 days delinquent or have been paid in full at 12/31/09. Enhance RE loan modification analytics (1) U.S. GAAP basis

17. Other Run-off Portfolios � Mortgage Services and Auto Finance Mortgage Services ($19.9 bn (1) at 12/31/09) Consists primarily of 2006 and earlier vintages Losses higher than originally expected but due mainly to economic deterioration Runoff has slowed Provisions decreased in 2009 as the portfolio runs off and becomes more fully seasoned Auto Finance ($4.5 bn (1) at 12/31/09) The July 2008 decision to discontinue dealer and direct auto finance originations was correct. In November 2009, we entered into an agreement to sell our auto finance receivables servicing operations and certain auto finance receivables to Santander. Deal closed in March 2010. (1) U.S. GAAP basis

18. HSBC Finance � Funding Update 2009 Debt maturities of $26 billion were funded through: Sale of card and auto receivables to HSBC Bank USA ($9 bn, net) Balance sheet attrition ($9 bn) Cash from operations ($7 bn) Capital support provided by HSBC ($2.4 bn) Retail/affiliate term debt issuance ($2.2 bn) 2010 debt maturities of $15-$17 bn will be funded primarily through balance sheet attrition and cash from operations. HSBC Finance will continue its commercial paper program Smaller program to match declining balance sheet Strategy is to maintain at least 100% backup line coverage Active cash management versus term funding Going forward, funding requirements are very manageable Maturing debt continues to decline Attrition and cash from operations will continue to be the primary sources of debt repayment. Any incremental funding requirements will be met primarily through selected debt issuance and asset sales.

19. Contacts

20. Contacts and further information Nick Turnor Head of Debt Investor Relations nick.turnor@hsbc.com +44 20 7992 5501 nturnor1@bloomberg.net