SABB First Half 2005 results

HSBC Holdings PLC
12 July 2005


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 HALF 2005 RESULTS - HIGHLIGHTS

   *Net profit of SAR1,200 million (US$320 million) for the six months ended 30
   June 2005 - up SAR366 million (US$98 million) or 44.0 per cent over the same
   period in 2004^.

   *Customer deposits of SAR44.5 billion (US$11.9 billion) at 30 June 2005 - up
   SAR5.2 billion (US$1.4 billion) or 13.2 per cent over 30 June 2004.

   *Loans and advances to customers of SAR35.4 billion (US$9.4 billion) at 30
   June 2005 - up SAR7.4 billion (US$1.9 billion) or 26.6 per cent over 30 June
   2004.

   *Total assets of SAR60.5 billion (US$16.1 billion) at 30 June 2005 - up
   SAR10.5 billion (US$2.8 billion) or 21.0 per cent over 30 June 2004.
 
   *Earnings per share of SAR24.00 (US$6.40) for the six months ended 30 June
    2005 - up 44.0 per cent from SAR16.67 (US$4.45) over the same period in 
    2004^.

^ Net profit and earnings per share for the six months ended 30 June 2004 have
been restated to reflect the adoption of the revised International Accounting
Standard 39 - Financial Instruments: Recognition and Measurement.

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR1,200 million (US$320
million) for the six months ended 30 June 2005. This represents an increase of
44.0 per cent over the SAR834 million (US$222 million) earned in the same 
period in 2004. Earnings per share increased to SAR24.00 (US$6.40) compared to
SAR16.67 (US$4.45) for the same period last year^.

Customer deposits increased to SAR44.5 billion (US$11.9 billion) at 30 June 
2005 from SAR39.3 billion (US$10.5 billion) at 30 June 2004.

Loans and advances to customers increased to SAR35.4 billion (US$9.4 billion) 
at 30 June 2005 from SAR28.0 billion (US$7.5 billion) at 30 June 2004.

The bank's investment portfolio totalled SAR17.0 billion (US$4.5 billion) at 30
June 2005, an increase from SAR15.4 billion (US$4.1 billion) at 30 June 2004.

Geoff Calvert, managing director of The Saudi British Bank, said: "First half
results have been very strong. Operating revenues continue to trend well above
2004 levels. While non-funds income continues to benefit from a buoyant local
equity market, growth has been strong across all areas. The bank's cost:income
ratio has continued to improve due to successful management of the cost base
while investing in new growth opportunities. Our loan and deposit growth has
been strong, in part reflecting good macro-economic conditions in the Saudi
economy. Credit quality remains sound with a continued low level of provisions
for credit losses. Capital and liquidity positions remain strong.

"Following the success of the first eurobond issued by a Saudi company in the
first quarter of 2005, SABB completed another first with the closing of a
funding deal with the International Finance Corporation to support SABB's 
Sharia compliant Al Amanah Islamic Personal Home Loan Financing product.

"The Saudi British Bank has been chosen as 'Best Equities House in the Kingdom
of Saudi Arabia for 2005' by Euromoney magazine. The award recognises the 
bank's leading position in the banking sector.

"All areas of the bank are performing well. We continue to look for new
opportunities and develop new products and services for our customers in the
Kingdom.

"The Directors have approved the payment of a net interim dividend of SAR10.00
per share (gross dividend of SAR10.52 per share). This represents a total gross
interim dividend payment of SAR526 million, an increase of 11.8 per cent
compared to the same period last year.

"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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