SABB 3Q 2006 Results

HSBC Holdings PLC
10 October 2006



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





                             THE SAUDI BRITISH BANK

                    THIRD QUARTER 2006 RESULTS - HIGHLIGHTS



•   Net profit of SAR2,455 million (US$655 million) for the nine months
    ended 30 September 2006 - up SAR581 million (US$155 million) or 31.0 per 
    cent over the same period in 2005.



•   Customer deposits of SAR59.7 billion (US$15.9 billion) at 30 September
    2006 - up SAR14.1 billion (US$3.8 billion) or 30.9 per cent over 30 
    September 2005.



•   Loans and advances to customers of SAR41.2 billion (US$11.0 billion) at
    30 September 2006 - up SAR1.6 billion (US$0.4 billion) or 4.0 per cent over 
    30 September 2005.



•   Total assets of SAR77.5 billion (US$20.7 billion) at 30 September 2006
    - up SAR10.1 billion (US$2.7 billion) or 15.0 per cent over 30 September 
    2005.



•   Earnings per share of SAR6.55 (US$1.75) for the nine months ended 30
    September 2006 - up 31.0 per cent from SAR5.00 (US$1.33) over the same 
    period in 2005(^).



(^) Earnings per share for the nine months ended 30 September 2005 have been
adjusted to reflect a 1:2 bonus issue approved at the Annual General Meeting
held on 21 March 2006 and a 5:1 share split effective 8 April 2006.





Commentary



SABB recorded a net profit of SAR2,455 million (US$655 million) for the nine
months ended 30 September 2006. This represents an increase of 31.0 per cent
over the SAR1,874 million (US$500 million) earned in the same period in 2005.
Earnings per share increased to SAR6.55 (US$1.75) compared to SAR5.00 (US$1.33)
for the same period last year(^).



Customer deposits increased to SAR59.7 billion (US$15.9 billion) at 30 September
2006 from SAR45.6 billion (US$12.2 billion) at 30 September 2005.



Loans and advances to customers increased to SAR41.2 billion (US$11.0 billion)
at 30 September 2006 from SAR39.6 billion (US$10.6 billion) at 30 September
2005.



The bank's investment portfolio totalled SAR16.6 billion (US$4.4 billion) at 30
September 2006, down from SAR16.9 billion (US$4.5 billion) at 30 September 2005.



John Coverdale, managing director of SABB, said: "SABB's focus on its core
banking businesses has continued to deliver robust growth and results for its
shareholders. The expected impact on income resulting from a turbulent stock
market in the first half of the year has been absorbed, and SABB is well placed
for future growth.



"Operating revenues have grown by 30.1 per cent compared to the same period in
2005, while our cost base has increased 34.1 per cent. SABB continues to invest
in strategic technology, sales and service delivery channels in order to enhance
customer service and grow the business.



"The credit quality of our various portfolios remains sound and delinquencies
are in line with anticipated increases due to growth in our cards and personal
loan businesses. Deposit growth has been strong over the past few months as
investors have rebalanced their portfolios and several corporate clients have
mobilised funds for significant projects. Capital and liquidity positions remain
very strong.



"The third quarter of 2006 saw the formal establishment of our investment
banking affiliate, HSBC Saudi Arabia Ltd, a key milestone in SABB's evolution
from a traditional bank to a diversified financial services group.



"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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