SABB 2002 Annual Results

HSBC Holdings PLC
22 January 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

                        2002 ANNUAL RESULTS - HIGHLIGHTS

* Net profit of SAR972 million (US$259 million) for the year ended 31 December
2002 - up SAR142 million (US$38 million) or 17.1 per cent over 2001.

* Earnings per share of SAR24.31 (US$6.48) for the year ended 31 December 2002 -
up 17.1 per cent from SAR20.75 (US$5.53) over 2001.

* Customer deposits of SAR35.0 billion (US$9.3 billion) at 31 December 2002 - up
SAR3.5 billion (US$0.9 billion) or 11.1 per cent over 31 December 2001.

* Loans and advances to customers of SAR20.4 billion (US$5.4 billion) at 31
December 2002 - up SAR4.4 billion (US$1.2 billion) or 27.5 per cent over 31
December 2001.

* Total assets of SAR46.2 billion (US$12.3 billion) at 31 December 2002 - up
SAR4.3 billion (US$1.1 billion) or 10.3 per cent over 31 December 2001.

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR972 million (US$259
million) for the year ended 31 December 2002. This represents an increase of
17.1 per cent over the SAR830 million (US$221 million) earned in 2001. Earnings
per share increased to SAR24.31 (US$6.48) compared to SAR20.75 (US$5.53) for
2001.

Customer deposits increased to SAR35.0 billion (US$9.3 billion) at 31 December
2002 from SAR31.5 billion (US$8.4 billion) at 31 December 2001, reflecting
growth in demand deposits.

Loans and advances to customers increased to SAR20.4 billion (US$5.4 billion) at
31 December 2002 from SAR16.0 billion (US$4.2 billion) at 31 December 2001,
reflecting growth across all major loan products.

David Hodgkinson, managing director, said: "Our performance for 2002 was
encouraging despite the low interest rate environment. The domestic economy
displayed welcome resilience in the face of continued regional uncertainties and
a slowdown of the global economy. Operating revenues continue to grow, while
operating costs have been contained. Provisions for credit losses decreased
significantly reflecting the improving quality of our lending portfolio. The
bank's capital and liquidity position remain strong.

"New products launched during the year were well received. The growth of our
Al-Amanah Islamic Services has been strong. Four branches were converted to
fully dedicated Islamic banking branches.

"During the year we had many successes. One of the highlights was being selected
as the flotation manager for the Saudi Telecom IPO, one of the largest in Saudi
Arabia's history. This was part of a strong overall performance from our
investment banking group.

"The bank continues to place priority on providing our customers with high
quality service. The success of this strategy is reflected in the latest market
surveys which indicate improved customer satisfaction levels.

"The Board has recommended a final net dividend of SAR8 per share. The total net
dividend for 2002 will amount to SAR16 per share as an interim net dividend of
SAR8 was paid in August 2002. As a result, the total dividend will increase by
14.3 per cent over 2001.

"We thank our customers for their support and our staff for their dedicated
efforts during the year."


                      This information is provided by RNS
            The company news service from the London Stock Exchange