EXHIBIT 99

HSBC Finance Corporation

Quarterly Financial Supplement – March 31, 2005

Index			Page No.
Basis of Reporting				2
Consolidated Statements of Income – Owned Basis:
	Three Months			3
Receivables Analysis				5
Financial Highlights – Managed Basis:
	Three Months			6
Credit Quality/ Credit Loss Reserves – Managed Basis				7
Reconciliations to GAAP Financial Measures:
	Revenues, Average Interest-Earning Assets and Net Interest Income:
		Three Months		8
	Selected Financial Ratios			9
	Credit Quality/ Credit Loss Reserves:
		Two-Months-and-Over Contractual Delinquency		11
		Quarter-to-Date Charge-offs, Net of Recoveries		11
		Real Estate Charge-offs and REO Expense		13
		Credit Loss Reserves		14
		Nonperforming Assets		14

HSBC Finance Corporation

Basis of Reporting

Non-GAAP Financial Measures

This Quarterly Financial Supplement includes financial information which is presented on a non-GAAP basis as discussed below. Information included in this Quarterly Financial Supplement is intended to supplement and should not be considered a substitute for owned basis reporting. This Quarterly Financial Supplement should be read in conjunction with the owned basis information reported in our Quarterly Report on Form 10-Q.

See “Reconciliations to GAAP Financial Measures” for quantitative reconciliations of non-GAAP financial information to the equivalent owned basis GAAP financial information.

Managed basis reporting We monitor our operations and evaluate trends on a managed basis (a non-GAAP financial measure), which assumes that securitized receivables have not been sold and are still on our balance sheet. We manage and evaluate our operations on a managed basis because the receivables that we securitize are subjected to underwriting standards comparable to our owned portfolio, are serviced by operating personnel without regard to ownership and result in a similar credit loss exposure for us. In addition, we fund our operations, review our operating results, and make decisions about allocating resources such as employees and capital on a managed basis.

When reporting on a managed basis, net interest income, provision for credit losses and fee income related to receivables securitized are reclassified from securitization revenue in our owned statement of income into the appropriate caption. Additionally, charge-off and delinquency associated with these receivables are included in our managed basis credit quality statistics.

Debt analysts, rating agencies and others also evaluate our operations on a managed basis for the reasons discussed above and have historically requested managed basis information from us. We believe that managed basis information enables investors and other interested parties to better understand the performance and quality of our entire managed loan portfolio and is important to understanding the quality of originations and the related credit risk inherent in our owned and securitized portfolios. As the level of our securitized receivables falls over time, managed basis and owned basis results will eventually converge, and we will only report owned basis results.

Operating results, percentages and ratios Certain percentages and ratios have been presented on an operating basis and have been calculated using “operating net income”, a non-GAAP financial measure. “Operating net income” is net income excluding certain nonrecurring items shown in the table below. These nonrecurring items are also excluded in calculating our operating basis efficiency ratios. We believe that excluding these nonrecurring items helps readers of our financial statements to better understand the results and trends of our underlying business. See our Annual Report for 2004 on Form 10-K for further discussion of these items.

A reconciliation of net income to operating net income follows:

	Three Months Ended
	3/31/05		12/31/04			3/31/04
	(in millions)
Net income	$	626	$	712		$	470
Gain on bulk sale of private label receivables, after-tax		-		(423	)		-
Adoption of FFIEC charge-off policies for domestic private label and MasterCard and Visa portfolios, after-tax		-		121			-
Operating net income	$	626	$	410		$	470

2

HSBC Finance Corporation

CONSOLIDATED STATEMENTS OF INCOME – OWNED BASIS

Three Months

									% Change from
		Three Months Ended							Prior
		3/31/05		12/31/04			3/31/04		Qtr.			Year
		(dollars are in millions)
Finance and other interest income		$	2,950	$	3,001		$	2,528		(1.7	)%		16.7	%
Interest expense			1,062		918			708		15.7			50.0
Net interest income			1,888		2,083			1,820		(9.4	)		3.7
Provision for credit losses			841		1,286			928		(34.6	)		(9.4	)
Net interest income after provision for credit losses			1,047		797			892		31.4			17.4
Other revenues:
	Securitization revenue		85		127			348		(33.1	)		(75.6	)
	Insurance revenue		221		221			211		-			4.7
	Investment income		33		30			41		10.0			(19.5	)
	Derivative income		260		263			52		(1.1	)		100+
	Fee income		306		282			265		8.5			15.5
	Taxpayer financial services income		243		8			206		100+			18.0
	Other income		314		164			100		91.5			100+
	Gain on bulk sale of private label receivables		-		663			-		(100.0	)		-
Total other revenues			1,462		1,758			1,223		(16.8	)		19.5
Costs and expenses:
	Salaries and fringe benefits		497		472			485		5.3			2.5
	Sales incentives		82		104			78		(21.2	)		5.1
	Occupancy and equipment expenses		87		86			83		1.2			4.8
	Other marketing expenses		180		199			132		(9.5	)		36.4
	Other servicing and administrative expenses		258		209			226		23.4			14.2
	Support services from HSBC affiliates		209		194			177		7.7			18.1
	Amortization of acquired intangibles		107		85			116		25.9			(7.8	)
	Policyholders’ benefits		122		113			113		8.0			8.0
Total costs and expenses			1,542		1,462			1,410		5.5			9.4
Income before income tax expense			967		1,093			705		(11.5	)		37.2
Income tax expense			341		381			235		(10.5	)		45.1
Net income		$	626	$	712		$	470		(12.1	)%		33.2	%
Gain on bulk sale of private label receivables, after-tax			-		(423	)		-		100.0			-
Adoption of FFIEC charge-off policies for domestic private label and MasterCard and Visa portfolios, after-tax			-		121			-		(100.0	)		-
Operating net income(1)		$	626	$	410		$	470		52.7	%		33.2	%

⁽¹⁾  Operating net income is a non-GAAP financial measure which is provided for comparison of our operating trends and should be read in conjunction with our owned basis GAAP financial information. See “Basis of Reporting” for a discussion on the use of non-GAAP financial information and “Reconciliations to GAAP Financial Measures” for quantitative reconciliations to the equivalent GAAP basis financial measure.

3

HSBC Finance Corporation

Securitization Revenue

	Three Months Ended
	3/31/05		12/31/04		3/31/04
	(in millions)
Net initial gains(1)	$	-	$	-	$	3
Net replenishment gains(1)		53		69		120
Servicing revenue and excess spread		32		58		225
Total	$	85	$	127	$	348

⁽¹⁾  Net of our estimate of probable credit losses under the recourse provisions.

Receivables Securitized

	Three Months Ended
	3/31/05		12/31/04		3/31/04
	(in millions)
Auto finance	$	-	$	-	$	-
MasterCard/ Visa(1)		-		-		50
Personal non-credit card		-		-		-
Total	$	-	$	-	$	50

⁽¹⁾  MasterCard and Visa are registered trademarks of MasterCard International, Incorporated and VISA USA Inc., respectively.

4

HSBC Finance Corporation

RECEIVABLES ANALYSIS

End-of-Period Receivables

								% Change from
								Prior
		3/31/05		12/31/04		3/31/04		Qtr.			Year
		(dollars are in millions)
Owned receivables:
	Real estate secured(1)	$	68,486	$	64,820	$	52,440		5.7	%		30.6	%
	Auto finance		8,107		7,544		4,936		7.5			64.2
	MasterCard/ Visa		15,554		14,635		10,788		6.3			44.2
	Private label(2)		3,130		3,411		11,759		(8.2	)		(73.4	)
	Personal non-credit card		16,608		16,128		13,343		3.0			24.5
	Commercial and other		276		317		384		(12.9	)		(28.1	)
Total owned receivables			112,161		106,855		93,650		5.0			19.8
Receivables serviced with limited recourse:
	Real estate secured		73		81		182		(9.9	)		(59.9	)
	Auto finance		2,175		2,679		4,093		(18.8	)		(46.9	)
	MasterCard/ Visa		6,140		7,583		9,536		(19.0	)		(35.6	)
	Private label(2)		-		-		5,261		-			(100.0	)
	Personal non-credit card		3,098		3,882		5,285		(20.2	)		(41.4	)
Total receivables serviced with limited recourse			11,486		14,225		24,357		(19.3	)		(52.8	)
Managed receivables:(3)
	Real estate secured		68,559		64,901		52,622		5.6			30.3
	Auto finance		10,282		10,223		9,029		.6			13.9
	MasterCard/ Visa		21,694		22,218		20,324		(2.4	)		6.7
	Private label(2)		3,130		3,411		17,020		(8.2	)		(81.6	)
	Personal non-credit card(4)		19,706		20,010		18,628		(1.5	)		5.8
	Commercial and other		276		317		384		(12.9	)		(28.1	)
Total managed receivables		$	123,647	$	121,080	$	118,007		2.1	%		4.8	%

(1)	Real estate secured receivable levels reflect sales to HSBC Bank USA, N.A. of $.9 billion on March 31, 2004.
(2)	Private label receivable levels reflect the bulk sale of domestic private label receivables in December 2004 of $12.2 billion ($15.6 billion on a managed basis) to HSBC Bank USA, N.A.
(3)	Managed basis reporting is a non-GAAP financial measure. See “Basis of Reporting” for a discussion on the use of non-GAAP financial information.
(4)	Personal non-credit card receivables are comprised of the following:

	3/31/05		12/31/04		3/31/04
	(in millions)
Domestic personal unsecured	$	10,736	$	10,725	$	9,659
Union Plus personal unsecured		426		474		640
Personal homeowner loans		4,390		4,582		4,580
Foreign unsecured		4,154		4,229		3,749
Total	$	19,706	$	20,010	$	18,628

5

HSBC Finance Corporation

FINANCIAL HIGHLIGHTS – MANAGED BASIS⁽¹⁾

Revenues, Average Interest-Earning Assets and Net Interest Income

Three Months

																				% Change from
		Three Months Ended																		Prior
		3/31/05			(2)			12/31/04			(2)			3/31/04			(2)			Qtr.			Year
		(dollars are in millions)
Finance and other interest income		$	3,391			10.78	%	$	3,601			10.64	%	$	3,417			10.94	%		(5.8	)%		(.8	)%
Interest expense			1,171			3.72			1,050			3.10			843			2.70			11.5			38.9
Net interest income			2,220			7.06	%		2,551			7.54	%		2,574			8.24	%		(13.0	)		(13.8	)
Provision for credit losses			871						1,305						1,181						(33.3	)		(26.2	)
Net interest income after provision for credit losses		$	1,349					$	1,246					$	1,393						8.3	%		(3.2	)%
Other revenues:
	Insurance revenue	$	221					$	221					$	211						-	%		4.7	%
	Investment income		33						30						41						10.0			(19.5	)
	Fee income		397						437						462						(9.2	)		(14.1	)
	Securitization revenue		(308	)					(477	)					(350	)					(35.4	)		(12.0	)
	Derivative income		260						263						52						(1.1	)		100+
	Taxpayer financial services income		243						8						206						100+			18.0
	Other income		314						164						100						91.5			100+
	Gain on bulk sale of private label receivables		-						663						-						(100.0	)		-
Total other revenues		$	1,160					$	1,309					$	722						(11.4	)%		60.7	%
Average managed receivables
	Real estate secured	$	66,562					$	61,543					$	52,165						8.2	%		27.6	%
	Auto finance		10,242						10,052						8,902						1.9			15.1
	MasterCard/ Visa		21,928						21,221						20,823						3.3			5.3
	Private label		3,227						17,858						17,471						(81.9	)		(81.5	)
	Personal non-credit card		19,827						19,593						18,857						1.2			5.1
	Commercial and other		306						321						391						(4.7	)		(21.7	)
	Purchase accounting fair value adjustments		184						243						391						(24.3	)		(52.9	)
Average managed receivables		$	122,276					$	130,831					$	119,000						(6.5	)%		2.8	%
Average noninsurance investments			2,,927						3,889						5,313						(24.7	)		(44.9	)
Other interest-earning assets			666						660						641						.9			3.9
Average managed interest-earning assets		$	125,869					$	135,380					$	124,954						(7.0	)%		.7	%
Selected Financial Ratios:
Return on average managed assets			1.73	%					1.87	%					1.30	%					(7.5	)%		33.1	%
Efficiency ratio			43.59						36.00						40.75						21.1			7.0
Net interest margin			7.06						7.54						8.24						(6.4	)		(14.3	)
Risk adjusted revenue			8.17						8.37						7.06						(2.4	)		15.7
Excluding Nonrecurring Items/ Operating Basis:
Return on average managed assets			1.73						1.07						1.30						61.7			33.1
Efficiency ratio			43.59						42.18						40.75						3.3			7.0
Risk adjusted revenue			8.17						7.32						7.06						11.6			15.7

(1)	Managed basis reporting is a non-GAAP financial measure. See “Basis of Reporting” for a discussion on the use of non-GAAP financial information and “Reconciliations to GAAP Financial Measures” for quantitative reconciliations to the equivalent GAAP basis financial measure.
(2)	% Columns: comparison to average managed interest-earning assets, annualized.

6

HSBC Finance Corporation

CREDIT QUALITY/ CREDIT LOSS RESERVES – MANAGED BASIS⁽¹⁾

Two-Months-and-Over Contractual Delinquency

As a percent of managed consumer receivables, excludes commercial.	3/31/05			12/31/04			3/31/04
Real estate secured		2.64	%		2.97	%		3.89	%
Auto finance		2.26			2.96			2.63
MasterCard/ Visa		3.97			3.98			4.35
Private label		4.71			4.13			4.98
Personal non-credit card		9.16			9.30			10.36
Total		3.93	%		4.24	%		5.06	%

Quarter-to-Date Charge-offs, Net of Recoveries

As a percent of average managed consumer receivables, annualized, excludes commercial.	3/31/05			12/31/04			3/31/04
Real estate secured		.87	%		1.04	%		1.15	%
Auto finance		5.82			4.47			7.81
MasterCard/ Visa(2)		6.56			7.54			7.08
Private label(2)		4.18			9.22			5.06
Personal non-credit card		8.54			8.55			11.21
Total		3.65	%		4.61	%		4.88	%
Real estate charge-offs and REO expense as a percent of average managed real estate secured receivables		1.01	%		1.17	%		1.63	%

Credit Loss Reserves

	3/31/05			12/31/04			3/31/04
	(in millions)
Reserves for managed receivables at beginning of quarter	$	4,515		$	5,199		$	6,167
Provision for credit losses		871			1,305			1,181
Charge-offs, net of recoveries		(1,118	)		(1,502	)		(1,442	)
Other, net		(26	)		(487	)		6
Reserves for managed receivables at end of quarter	$	4,242		$	4,515		$	5,912
Reserves as a percent of managed receivables		3.43	%		3.73	%		5.01	%

Nonperforming Assets

	3/31/05			12/31/04			3/31/04
	(in millions)
Nonaccrual managed receivables	$	3,387		$	3,558		$	3,726
Accruing managed receivables 90 or more days delinquent		579			607			1,208
Renegotiated commercial loans		1			2			2
Total nonperforming managed receivables		3,967			4,167			4,936
Real estate owned		509			587			656
Total nonperforming assets	$	4,476		$	4,754		$	5,592
Managed credit loss reserves as a percent of nonperforming managed receivables		106.9	%		108.4	%		119.8	%

(1)

Managed basis reporting is a non-GAAP financial measure. See “Basis of Reporting” for a discussion on the use of non-GAAP financial information and “Reconciliations to GAAP Financial Measures” for quantitative reconciliations to the equivalent GAAP basis financial measure.

(2)

The adoption of charge-off policies in accordance with the Uniform Retail Credit Classification and Account Management Policy issued by the Federal Financial Institutions Examination Council for our domestic private label and our MasterCard and Visa portfolios in December 2004 increased private label net charge-offs by $197 million (442 basis points), MasterCard/ Visa net charge-offs by $5 million (10 basis points) and total consumer net charge-offs by $202 million (62 basis points) during the quarter ended December 31, 2004.

7

HSBC Finance Corporation

RECONCILIATION TO GAAP FINANCIAL MEASURES

Revenues, Average Interest-Earning Assets and Net Interest Income

Three Months

		Three Months Ended 3/31/05									Three Months Ended 12/31/04									Three Months Ended 3/31/04
					Serviced with									Serviced with									Serviced with
					Limited									Limited									Limited
		Owned			Recourse(1)			Managed			Owned			Recourse(1)			Managed			Owned			Recourse(1)			Managed
		(dollars are in millions)
Finance and other interest income		$	2,950		$	441		$	3,391		$	3,001		$	600		$	3,601		$	2,528		$	889		$	3,417
Interest expense			1,062			109			1,171			918			132			1,050			708			135			843
Net interest income			1,888			332			2,220			2,083			468			2,551			1,820			754			2,574
Provision for credit losses			841			30			871			1,286			19			1,305			928			253			1,181
Net interest income after provision for credit losses		$	1,047		$	302		$	1,349		$	797		$	449		$	1,246		$	892		$	501		$	1,393
Other revenues:
	Securitization revenue	$	85		$	(393	)	$	(308	)	$	127		$	(604	)	$	(477	)	$	348		$	(698	)	$	(350	)
	Insurance revenue		221			-			221			221			-			221			211			-			211
	Investment income		33			-			33			30			-			30			41			-			41
	Fee income		306			91			397			282			155			437			265			197			462
	Derivative income		260			-			260			263			-			263			52			-			52
	Taxpayer financial services income		243			-			243			8			-			8			206			-			206
	Other income		314			-			314			164			-			164			100			-			100
	Gain on bulk sale of private label receivables		-			-			-			663			-			663			-			-			-
Total other revenues		$	1,462		$	(302	)	$	1,160		$	1,758		$	(449	)	$	1,309		$	1,223		$	(501	)	$	722
Average receivables:
	Real estate secured	$	66,485		$	77		$	66,562		$	61,445		$	98		$	61,543		$	51,976		$	189		$	52,165
	Auto finance		7,779			2,463			10,242			7,191			2,861			10,052			4,511			4,391			8,902
	MasterCard/ Visa		15,079			6,849			21,928			13,009			8,212			21,221			11,129			9,694			20,823
	Private label		3,227			-			3,227			14,349			3,509			17,858			12,209			5,262			17,471
	Personal non-credit card		16,332			3,495			19,827			15,671			3,922			19,593			13,115			5,742			18,857
	Commercial and other		306			-			306			321			-			321			391			-			391
	Purchase accounting fair value adjustments		184			-			184			243			-			243			391			-			391
Average receivables		$	109,392		$	12,884		$	122,276		$	112,229		$	18,602		$	130,831		$	93,722		$	25,278		$	119,000
Average noninsurance investments			2,927			-			2,927			3,889			-			3,889			5,313			-			5,313
Other interest-earning assets			666			-			666			660			-			660			641			-			641
Average interest-earning assets		$	112,985		$	12,884		$	125,869		$	116,778		$	18,602		$	135,380		$	99,676		$	25,278		$	124,954
Net interest income as a percentage of average interest-earning assets			6.68	%		10.31	%		7.06	%		7.13	%		10.06	%		7.54	%		7.30	%		11.93	%		8.24	%

⁽¹⁾  When reporting on a managed basis, finance and other interest income, interest expense, provision for credit losses and fee income related to securitized receivables are reclassified from securitization revenue in our owned statements of income into the appropriate caption.

8

HSBC Finance Corporation

RECONCILIATION TO GAAP FINANCIAL MEASURES

Selected Financial Ratios

		Three Months Ended
		3/31/05			12/31/04			3/31/04
		(dollars are in millions)
Return on Average Common Shareholder’s Equity:
Net income		$	626		$	712		$	470
	Dividends on preferred stock		(18	)		(18	)		(18	)
Net income available to common shareholders		$	608		$	694		$	452
Gain on bulk sale of private label receivables, after-tax			-			(423	)		-
Adoption of FFIEC charge-off policies for domestic private label and MasterCard and Visa portfolios, after-tax			-			121			-
Operating net income available to common shareholders		$	608		$	392		$	452
Average common shareholder’s equity		$	16,170		$	16,838		$	16,645
Return on average common shareholder’s equity			15.04	%		16.49	%		10.86	%
Return on average common shareholder’s equity, operating basis			15.04			9.31			10.86
Return on Average Assets:
Net income		$	626		$	712		$	470
Operating net income			626			410			470
Average assets:
	Owned basis	$	131,954		$	134,316		$	119,388
	Serviced with limited recourse		12,884			18,602			25,278
	Managed basis	$	144,838		$	152,918		$	144,666
Return on average owned assets			1.90	%		2.12	%		1.57	%
Return on average owned assets, operating basis			1.90			1.22			1.57
Return on average managed assets			1.73			1.87			1.30
Return on average managed assets, operating basis			1.73			1.07			1.30

9

HSBC Finance Corporation

		Three Months Ended
		3/31/05			12/31/04			3/31/04
		(dollars are in millions)
Efficiency Ratio:
Total costs and expenses less policyholders’ benefits		$	1,420		$	1,349		$	1,297
Net interest income and other revenues less policyholders’ benefits:
	Owned basis	$	3,228		$	3,728		$	2,930
	Serviced with limited recourse		30			19			253
	Managed basis	$	3,258		$	3,747		$	3,183
Gain on bulk sale of private label receivables		$	-		$	663		$	-
Adoption of FFIEC charge-off policies for domestic private label and MasterCard and Visa portfolios:
	Owned basis		-			151			-
	Managed basis		-			107			-
Net interest income and other revenues less policyholders’ benefits, excluding nonrecurring items:
	Owned basis	$	3,228		$	3,216		$	2,930
	Serviced with limited recourse		30			(25	)		253
	Managed basis	$	3,258		$	3,191		$	3,183
Owned basis efficiency ratio			43.99	%		36.14	%		44.27	%
Owned basis efficiency ratio, operating basis			43.99			41.95			44.27
Managed basis efficiency ratio			43.59			36.00			40.75
Managed basis efficiency ratio, operating basis			43.59			42.24			40.75
Managed Basis Risk Adjusted Revenue:
Net interest income		$	2,220		$	2,551		$	2,574
Other revenues, excluding securitization revenue			1,468			1,786			1,072
Less: Net charge-offs			(1,118	)		(1,502	)		(1,442	)
Risk adjusted revenue		$	2,570		$	2,835		$	2,204
	Gain on bulk sale of private label receivables		-			(663	)		-
	Adoption of FFIEC charge-off policies for domestic private label and MasterCard and Visa portfolios		-			309			-
Risk adjusted revenue, excluding nonrecurring items			2,570			2,481			2,204
Average interest-earning assets		$	125,869		$	135,380		$	124,954
Managed basis risk adjusted revenue			8.17	%		8.37	%		7.06	%
Managed basis risk adjusted revenue, operating basis			8.17			7.32			7.06

10

HSBC Finance Corporation

RECONCILIATION TO GAAP FINANCIAL MEASURES

Credit Quality/ Credit Loss Reserves

		Two-Months-and-Over							Quarter-to-Date Charge-offs,
		Contractual Delinquency							Net of Recoveries
		Two-Months-				Two-Months-
		and-Over		Consumer		and-Over					Average
		Contractual		Receivables		Contractual			Net		Consumer		Net
		Delinquency		Outstanding		Delinquency(1)			Charge-offs		Receivables		Charge-offs(1)
		(dollars are in millions)
March 31, 2005
	Owned:
	First mortgage	$	1	$	26		5.25	%	$	-	$	26		1.22	%
	Real estate secured		1,797		68,486		2.62			144		66,485		.87
	Auto finance		134		8,107		1.65			74		7,779		3.80
	MasterCard/ Visa		716		15,554		4.60			270		15,079		7.17
	Private label		148		3,130		4.71			34		3,227		4.18
	Personal non-credit card		1,433		16,608		8.63			334		16,332		8.18
	Total	$	4,229	$	111,911		3.78	%	$	856	$	108,928		3.15	%
	Serviced with Limited Recourse:
	Real estate secured	$	10	$	73		13.70	%	$	1	$	77		5.19	%
	Auto finance		98		2,175		4.51			75		2,463		12.18
	MasterCard/ Visa		146		6,140		2.38			90		6,849		5.26
	Personal non-credit card		372		3,098		12.01			89		3,495		10.19
	Total	$	626	$	11,486		5.45	%	$	255	$	12,884		7.92	%
	Managed:
	First mortgage	$	1	$	26		5.25	%	$	-	$	26		1.22	%
	Real estate secured		1,807		68,559		2.64			145		66,562		.87
	Auto finance		232		10,282		2.26			149		10,242		5.82
	MasterCard/ Visa		862		21,694		3.97			360		21,928		6.56
	Private label		148		3,130		4.71			34		3,227		4.18
	Personal non-credit card		1,805		19,706		9.16			423		19,827		8.54
	Total	$	4,855	$	123,397		3.93	%	$	1,111	$	121,812		3.65	%
December 31, 2004
	Owned:
	First mortgage	$	1	$	26		5.04	%	$	-	$	26		-	%
	Real estate secured		1,920		64,820		2.96			159		61,445		1.04
	Auto finance		156		7,544		2.07			49		7,191		2.73
	MasterCard/ Visa		714		14,635		4.88			275		13,009		8.44
	Private label		141		3,411		4.13			328		14,349		9.16
	Personal non-credit card		1,401		16,128		8.69			316		15,671		8.06
	Total	$	4,333	$	106,564		4.07	%	$	1,127	$	111,691		4.04	%
	Serviced with Limited Recourse:
	Real estate secured	$	10	$	81		12.35	%	$	1	$	98		4.08	%
	Auto finance		147		2,679		5.49			63		2,861		8.81
	MasterCard/ Visa		170		7,583		2.24			125		8,212		6.09
	Private label		-		-		-			83		3,509		9.46
	Personal non-credit card		461		3,882		11.88			103		3,921		10.51
	Total	$	788	$	14,225		5.54	%	$	375	$	18,601		8.06	%
	Managed:
	First mortgage	$	1	$	26		5.04	%	$	-	$	26		-	%
	Real estate secured		1,930		64,901		2.97			160		61,543		1.04
	Auto finance		303		10,223		2.96			112		10,052		4.47
	MasterCard/ Visa		884		22,218		3.98			400		21,221		7.54
	Private label		141		3,411		4.13			411		17,858		9.22
	Personal non-credit card		1,862		20,010		9.30			419		19,592		8.55
	Total	$	5,121	$	120,789		4.24	%	$	1,502	$	130,292		4.61	%

⁽¹⁾  Certain percentages may not recompute from the dollar figures presented due to rounding.

11

HSBC Finance Corporation

RECONCILIATION TO GAAP FINANCIAL MEASURES

Credit Quality/ Credit Loss Reserves (Continued)

									Quarter-to-Date Charge-offs,
		Two-Months-and-Over Contractual Delinquency							Net of Recoveries
		Two-Months-				Two-Months-
		and-Over		Consumer		and-Over					Average
		Contractual		Receivables		Contractual			Net		Consumer		Net
		Delinquency		Outstanding		Delinquency(1)			Charge-offs		Receivables		Charge-offs(1)
		(dollars are in millions)
March 31, 2004
	Owned:
	First mortgage	$	2	$	32		7.00	%	$	1	$	34		5.10	%
	Real estate secured		2,031		52,440		3.87			149		51,976		1.15
	Auto finance		83		4,936		1.68			52		4,511		4.65
	MasterCard/Visa		637		10,788		5.90			241		11,129		8.66
	Private label		632		11,759		5.38			161		12,209		5.29
	Personal non-credit card		1,286		13,344		9.64			366		13,115		11.17
	Total	$	4,671	$	93,299		5.01	%	$	970	$	92,974		4.17	%
	Serviced with Limited Recourse:
	Real estate secured	$	18	$	182		10.05	%	$	1	$	189		1.06	%
	Auto finance		155		4,093		3.79			122		4,391		11.07
	MasterCard/ Visa		246		9,536		2.59			127		9,694		5.27
	Private label		216		5,261		4.09			60		5,262		4.53
	Personal non-credit card		645		5,285		12.20			162		5,742		11.30
	Total	$	1,280	$	24,357		5.26	%	$	472	$	25,278		7.46	%
	Managed:
	First mortgage	$	2	$	32		7.00	%	$	1	$	34		5.10	%
	Real estate secured		2,049		52,622		3.89			150		52,165		1.15
	Auto finance		238		9,029		2.63			174		8,902		7.81
	MasterCard/ Visa		883		20,324		4.35			368		20,823		7.08
	Private label		848		17,020		4.98			221		17,471		5.06
	Personal non-credit card		1,931		18,629		10.36			528		18,857		11.21
	Total	$	5,951	$	117,656		5.06	%	$	1,442	$	118,252		4.88	%

⁽¹⁾  Certain percentages may not recompute from the dollar figures presented due to rounding.

12

HSBC Finance Corporation

				Serviced with
	Owned			Limited Recourse		Managed
	(dollars are in millions)
Real Estate Charge-offs and REO Expense:
Three months ended March 31, 2005
Real estate charge-offs and REO expense	$	168		$	1	$	169
Average real estate secured receivables		66,485			77		66,562
Real estate charge-offs and REO expense as a percentage of average real estate secured receivables(1)		1.01	%		-		1.01	%
Three months ended December 31, 2004
Real estate charge-offs and REO expense	$	179		$	1	$	180
Average real estate secured receivables		61,445			98		61,543
Real estate charge-offs and REO expense as a percentage of average real estate secured receivables(1)		1.17	%		-		1.17	%
Three months ended March 31, 2004
Real estate charge-offs and REO expense	$	212		$	1	$	213
Average real estate secured receivables		51,976			189		52,165
Real estate charge-offs and REO expense as a percentage of average real estate secured receivables(1)		1.63	%		-		1.63	%

⁽¹⁾  Certain percentages may not recompute from the dollar figures presented due to rounding.

13

HSBC Finance Corporation

RECONCILIATION TO GAAP FINANCIAL MEASURES

Credit Quality/Credit Loss Reserves (Continued)

				Serviced with
	Owned			Limited Recourse			Managed
	(dollars are in millions)
Credit Loss Reserves:
Three months ended March 31, 2005
Reserves for receivables at beginning of quarter	$	3,625		$	890		$	4,515
Provision for credit losses		841			30			871
Charge-offs, net of recoveries		(863	)		(255	)		(1,118	)
Other, net		(22	)		(4	)		(26	)
Reserves for receivables at end of quarter	$	3,581		$	661		$	4,242
Receivables	$	112,161		$	11,486		$	123,647
Credit loss reserves as a percent of receivables		3.19	%		5.75	%		3.43	%
Three months ended December 31, 2004
Reserves for receivables at beginning of quarter	$	3,953		$	1,246		$	5,199
Provision for credit losses		1,286			19			1,305
Charge-offs, net of recoveries		(1,127	)		(375	)		(1,502	)
Other, net		(487	)		-			(487	)
Reserves for receivables at end of quarter	$	3,625		$	890		$	4,515
Receivables	$	106,855		$	14,225		$	121,080
Credit loss reserves as a percent of receivables		3.39	%		6.26	%		3.73	%
Three months ended March 31, 2004
Reserves for receivables at beginning of quarter	$	3,793		$	2,374		$	6,167
Provision for credit losses		928			253			1,181
Charge-offs, net of recoveries		(970	)		(472	)		(1,442	)
Other, net		2			4			6
Reserves for receivables at end of quarter	$	3,753		$	2,159		$	5,912
Receivables	$	93,650		$	24,357		$	118,007
Credit loss reserves as a percent of receivables		4.01	%		8.86	%		5.01	%
Nonperforming Assets:
March 31, 2005
Nonaccrual receivables	$	2,956		$	431		$	3,387
Accruing receivables 90 or more days delinquent		499			80			579
Renegotiated commercial loans		1			-			1
Total nonperforming receivables		3,456			511			3,967
Real estate owned		509			-			509
Total nonperforming assets	$	3,965		$	511		$	4,476
Credit loss reserves as a percent of nonperforming receivables		103.6	%		-			106.9	%
December 31, 2004
Nonaccrual receivables	$	3,012		$	546		$	3,558
Accruing receivables 90 or more days delinquent		507			100			607
Renegotiated commercial loans		2			-			2
Total nonperforming receivables		3,521			646			4,167
Real estate owned		587			-			587
Total nonperforming assets	$	4,108		$	646		$	4,754
Credit loss reserves as a percent of nonperforming receivables		103.0	%		-			108.4	%
March 31, 2004
Nonaccrual receivables	$	3,003		$	723		$	3,726
Accruing receivables 90 or more days delinquent		876			332			1,208
Renegotiated commercial loans		2			-			2
Total nonperforming receivables		3,881			1,055			4,936
Real estate owned		656			-			656
Total nonperforming assets	$	4,537		$	1,055		$	5,592
Credit loss reserves as a percent of nonperforming receivables		96.7	%		-			119.8	%

14