HSBC Holdings Plc, Europe's biggest lender, plans to expand its US retail-branch network and hire more staff despite the weak US economy, a senior HSBC executive told Reuters on Tuesday.

London-based HSBC plans to add 22 new branches by the end of 2008, all of which will be outside New York with a focus on New Jersey, California and Washington, said Kevin Martin, executive vice president of HSBC Bank USA, a wholly owned unit of HSBC Holdings.

The bank also plans to open 30 to 40 new branches in 2009 and expects to retain such a growth rate to expand its retail banking network annually across the US in the next few years, Martin told Reuters in an interview at HSBC's US headquarters in New York.

HSBC operates about 460 US branches, including 380 in New York.

Martin said that HSBC has no "mass program to reduce staff" in the US. Instead, to support branch expansion, it plans to hire staff in regions outside New York, such as California and Florida, he said.

HSBC also has no plans to cut marketing expenses such as airport advertising, sports and art event sponsorship to promote retail banking in the US, he said. On the contrary, HSBC plans to boost its airport advertisement campaign, Martin explained.

Reuters

(HK Edition 04/17/2008 page2)