1. Home Financing & Banking in Accordance with Shariah

2. Muhammed Ali Sheikh HSBC Amanah UK Amanah Manager Midlands Region

3. Contents  Background to HSBC Amanah  Principles of Islamic Finance  Modes of Islamic Finance  Ensuring Shariah Compliance  Amanah Home Finance  Price Comparison  Amanah Bank Account/Debit Card  Amanah Products and Services  Amanah Index Fund  The Strengths of Birmingham  Question & Answer Session

4. Background to HSBC Amanah  HSBC Amanah launched in 1998  Islamic Banking Division of HSBC Group  Regional offices in 10 geographies including UK  Offers a range of services developed in accordance with Shariah  HSBC Amanah UK launched July 2003  First High Street Bank to offer Islamic Financial Solutions  Dedicated Team of Amanah Managers  21 Centres of Excellence including Mayfair

5. Principles of Islamic Finance  Alternative mode of finance based on Shariah  Prohibition of Interest (Riba)  Discourages gambling & speculation (Maysir)  Discourages certain types of uncertainty (Gharar)  Parameters for ethical investment  Equitable relationship between contracting parties  Financing of goods and services to benefit the real economy

6. Modes of Islamic Finance  Murabahah (Cost-plus Financing)  Qard al-Hasan (Virtuous Loan)  Ijarah (Leasing)  Diminishing Musharakah (Co-ownership)

7. Ensuring Shariah Compliance  Amanah Shariah Team  Independent Advisory Board - Global/National  Sheikh Justice (Retired) Mufti Muhammed Taqi Usmani  Sheikh Nizam Yaquby  Sheikh Dr. Mohammed Al Elgari  Dr Muhammed Imran Ashraf Usmani

8. Amanah Home Finance  Based on your Financial Circumstances we enter into a Musharakah or Partnership to Jointly purchase the property.  The property is held in trust for both of us by HSBC Trust Company  As a commitment to the Partnership, the customer purchases a Minimum 40% share of the property and the Bank purchases the remaining 60% share.  The property must be for main residence only, therefore while the customer resides in the property. For the part of property HSBC Amanah owns, the customer pays rent for a fixed period.

9. Amanah Home Finance Cont’d…  The monthly repayment is split, a part of it is rental and the other part acquires shares of ownership on your behalf, at the same time the Banks ownership decreases.  At the end of the term, HSBC Amanah no longer owns the property, the customer does.  Buildings insurance purchased separately  AHF Rate reviewed bi-annually (Jan & July)  Lump sum payments bi-annually (min £5,000)  The AHF Rate will be no more than 2.5% above base rate

10. Home Finance/Mortgage Comparison NationWide5.60% Alliance & Leicester 5.00% AbbeyNational4.40% RBS4.40% Islamic Bank of Britain3.99% HSBC Bank plc3.90% HSBC Amanah 3.00% Figures correct as at 01/06/09 - www.comparethemarket.com

11. Amanah Bank Account & Debit Card  Totally Interest-free Bank Account  Funds deposited will be administered in accordance with Shariah  Cash payment and withdrawal facilities  Cheque book, standing order and direct debit facilities  Monthly statements provided  No minimum balance

12. Amanah Products & Services  Amanah Pension Fund  Amanah Investments  Amanah Treasury  Amanah Private Banking

13. HSBC Amanah Global Equity Index Fund  The total assets of Islamic financial institutions have grown by an average of 15-20% per annum* over the past five years.  It is expected Islamic finance will continue to flourish in the Middle East and the Far East and that total assets in Islamic finance will reach $1 trillion by 2012*.  The growth in Islamic finance has also been mirrored in the growth of Shariah compliant investment funds. It is estimated that currently, there are more than US$30 billion under management* in Shariah compliant investment funds.

14. HSBC Amanah Global Equity Index Fund »The Fund meets Shariah principles as interpreted and laid down by the Shariah Committee. The investment process ensures adherence to Shariah principles which HSBC Amanah’s Central Shariah Committee closely monitors. »The HSBC Amanah Global Equity Index Fund aims to create long-term appreciation of capital through investment in a well- diversified portfolio of equities namely; the Dow Jones Islamic Titans 100 Index. »The fund is managed by Sinopia, the specialist quantitative management arm of the HSBC Group.

15. The Strengths of Birmingham  Birmingham has the highest concentration of Muslim population in Britain  Birmingham has over 150,000 Muslim and has over 40,000 households  Majority of the community hold conventional mortgages (99%)  Birmingham has a wide mix of Muslims from different backgrounds (Pakistani, Indian, Bengali, Arab, African)  Birmingham has a very affluent Muslim community  Birmingham has a very large business and entrepreneurial community  Birmingham poses the biggest opportunity in the Midlands

16. Question & Answer Session

17. Ali Sheikh - 0121 252 6365 or muhammedsheikh@hsbc.com