National Bank of Canada Through An Affiliate To Acquire Full Service Investment Advisory Business Of HSBC Bank Canada's HSBC Securities (Canada) Inc.

National Bank of Canada announced that through an affiliate, it has entered into an agreement with HSBC Bank Canada and certain of its subsidiaries (HSBC Bank Canada) pursuant to which National Bank will acquire the full service investment advisory business of HSBC Securities (Canada) Inc. (HSBC Securities) and certain assets related to the segregated fund and insurance business of HSBC Insurance Agency (Canada) Inc. (together, the Full Service Investment Advisory Business). HSBC Securities' Full Service Investment Advisory Business has $14.2 billion of assets under administration, managed by over 120 investment advisors located in 27 offices across Canada. The Full Service Investment Advisory Business operates across Canada, with approximately 70% of its business being centered in Ontario and British Columbia. National Bank has agreed to pay $206 million in cash to HSBC Bank Canada, subject to certain customary adjustments. An additional amount has been set aside to ensure maximum retention of investment advisors. Closing is expected to occur in December 2011, subject to receipt of necessary regulatory approvals.