SABB 1Q 2004 Results

HSBC Holdings PLC
13 April 2004

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 2004 RESULTS - HIGHLIGHTS

   •Net profit of SAR359 million (US$96 million) for the quarter ended 31
    March 2004 - up SAR83 million (US$22 million) or 30.3 per cent over the same
    period in 2003.

   •Customer deposits of SAR37.2 billion (US$9.9 billion) at 31 March 2004 -
    up SAR3.0 billion (US$0.8 billion) or 8.8 per cent over 31 March 2003.

   •Loans and advances to customers of SAR27.2 billion (US$7.3 billion) at 31
    March 2004 - up SAR4.8 billion (US$1.3 billion) or 21.4 per cent over 31
    March 2003.

   •Total assets of SAR49.8 billion (US$13.3 billion) at 31 March 2004 - up
    SAR2.7 billion (US$0.7 billion) or 5.7 per cent over 31 March 2003.

   •Earnings per share of SAR7.18 (US$1.92) for the quarter ended 31 March
    2004 - up 30.3 per cent from SAR5.51 (US$1.47) over the same period in 
    2003^.

^Earnings per share for the quarter ended 31 March 2003 have been restated as a
result of the 1-for-4 bonus share issue in March 2004.

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR359 million (US$96
million) for the quarter ended 31 March 2004. This represents an increase of
30.3 per cent over the SAR276 million (US$74 million) earned in the quarter
ended 31 March 2003. Earnings per share increased to SAR7.18 (US$1.92) compared
to SAR5.51 (US$1.47) for the first quarter of 2003.

Customer deposits increased to SAR37.2 billion (US$9.9 billion) at 31 March 2004
from SAR34.2 billion (US$9.1 billion) at 31 March 2003.

Loans and advances to customers increased to SAR27.2 billion (US$7.3 billion) at
31 March 2004 from SAR22.4 billion (US$6.0 billion) at 31 March 2003.

The bank's investment portfolio totalled SAR17.4 billion (US$4.6 billion) at 31
March 2004, a decrease from SAR20.4 billion (US$5.4 billion) at 31 March 2003,
as proceeds from sales and maturities have been reallocated to meet the growth
in the loan portfolio.

Geoff Calvert, managing director, said: "The Saudi British Bank has made a
strong start to 2004. Operating revenues are well above the same period in 2003
while at the same time operating costs have been contained. Provisions for
credit losses remain low reflecting the quality of our loan portfolio. Capital
and liquidity positions remain strong.

"All areas of the bank are performing well. Demand for corporate and personal
lending products remains strong, particularly for our Al Amanah Islamic banking
products. During the quarter, the bank launched a new Al Amanah Islamic deposit
product, 'Murabaha Investment Account', which has been well received by the
market.

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



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