HSBC subsid 1Q03 results

HSBC Holdings PLC
14 April 2003


The following news release was issued today by The Saudi British Bank, a 40 per
cent indirectly-held associate of HSBC Holdings plc.

                             THE SAUDI BRITISH BANK

                    FIRST QUARTER 2003 RESULTS - HIGHLIGHTS

Highlights

* Net profit of SAR276 million (US$74 million) for the quarter ended 31 March
2003 - up SAR41 million (US$11 million) or 17.4 per cent over the same period in
2002.

* Customer deposits of SAR34.2 billion (US$9.1 billion) at 31 March 2003 - up
SAR2.1 billion (US$0.5 billion) or 6.5 per cent over 31 March 2002.

* Loans and advances to customers of SAR22.4 billion (US$6.0 billion) at 31
March 2003 - up SAR5.1 billion (US$1.4 billion) or 29.5 per cent over 31 March
2002.

* Total assets of SAR47.1 billion (US$12.6 billion) at 31 March 2003 - up SAR4.0
billion (US$1.1 billion) or 9.3 per cent over 31 March 2002.

* Earnings per share of SAR6.89 (US$1.84) for the quarter ended 31 March 2003 -
up from SAR5.87 (US$1.57) over the same period in 2002.

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR276 million (US$74
million) for the quarter ended 31 March 2003. This represents an increase of
17.4 per cent over the SAR235 million (US$63 million) earned in the same period
in 2002. Earnings per share increased to SAR6.89 (US$1.84) compared to SAR5.87
(US$1.57) for the first quarter of 2002.

Customer deposits increased to SAR34.2 billion (US$9.1 billion) at 31 March 2003
from SAR32.1 billion (US$8.6 billion) at 31 March 2002.

Loans and advances to customers were higher at SAR22.4 billion (US$6.0 billion)
at 31 March 2003 from SAR17.3 billion (US$4.6 billion) at 31 March 2002.

Investments decreased to SAR20.4 billion (US$5.4 billion) at 31 March 2003 from
SAR22.0 billion (US$5.9 billion) at 31 March 2002, as the proceeds from maturing
investments were used to meet the strong growth in loans and advances.

David Hodgkinson, managing director, said: "The Saudi British Bank has made a
strong start to 2003. Growth in operating revenues has been maintained despite
interest rates being at historic lows and the current regional difficulties. At
a time of great uncertainty in world markets, our bank is in a strong position
to face these unique challenges. Our capital and liquidity ratios remain sound.

"The highlight of the first quarter was undoubtedly the successful completion of
the IPO for the Saudi Telecommunications Company for which the bank was the
appointed flotation manager. The issue raised SAR36.5 billion and was 3.5 times
oversubscribed. Over 32 per cent of the applications by value were made through
SABB.

"We continue to see an increase in take up of banking services from both
personal and corporate customers, as the range and features of products are
expanded.

"In line with the Kingdom's saudisation objective, the bank is proud to have
been awarded the Prince Naif Saudisation Award in recognition of our efforts
towards this strategic goal.

"Finally I would like to thank our customers for their continued support, and
our staff for their commitment and contribution to the bank's success."


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