Saudi Bristish Bank results

HSBC Holdings PLC
13 April 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 QUARTER 2005 RESULTS - HIGHLIGHTS

    * Net profit of SAR456 million (US$122 million) for the quarter ended 31
      March 2005 - up SAR92 million (US$25 million) or 25.1 per cent over the
      same period in 2004^.

    * Customer deposits of SAR42.3 billion (US$11.3 billion) at 31 March 2005 -
      up SAR5.1 billion (US$1.4 billion) or 13.8 per cent over 31 March 2004.

    * Loans and advances to customers of SAR32.3 billion (US$8.6 billion) at 31
      March 2005 - up SAR5.1 billion (US$1.3 billion) or 18.6 per cent over 31
      March 2004.

    * Total assets of SAR57.7 billion (US$15.4 billion) at 31 March 2005 - up
      SAR7.9 billion (US$2.1 billion) or 15.8 per cent over 31 March 2004.

    * Earnings per share of SAR9.12 (US$2.43) for the quarter ended 31 March
      2005 - up 25.1 per cent from SAR7.29 (US$1.94) over the same period in
      2004^.

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR456 million (US$122
million) for the quarter ended 31 March 2005. This represents an increase of
25.1 per cent over the SAR364 million (US$97 million) earned in the quarter
ended 31 March 2004. Earnings per share increased to SAR9.12 (US$2.43) compared
to SAR7.29 (US$1.94) for the first quarter in 2004^.

Customer deposits increased to SAR42.3 billion (US$11.3 billion) at 31 March
2005 from SAR37.2 billion (US$9.9 billion) at 31 March 2004.

Loans and advances to customers increased to SAR32.3 billion (US$8.6 billion) at
31 March 2005 from SAR27.2 billion (US$7.3 billion) at 31 March 2004.

The bank's investment portfolio totalled SAR16.4 billion (US$4.4 billion) at 31
March 2005, a decrease from SAR17.4 billion (US$4.6 billion) at 31 March 2004.

Geoff Calvert, managing director of The Saudi British Bank, said: "The Saudi
British Bank has made an encouraging start to 2005. Operating revenues are well
above 2004 levels, with particularly strong growth in non-funds income which has
continued to benefit from a strong local equity market. Despite incurring higher
overheads to support business growth, the bank's cost:income ratio has continued
to reduce reflecting improved operational efficiency. Our loan portfolio remains
sound and this is reflected in the low provision for credit losses. Capital and
liquidity positions remain strong.

"One of the highlights of the quarter was the successful issue of a US$600
million eurobond to investors throughout Europe, Asia and the Middle East. This
is the first eurobond ever issued by a Saudi Arabian company. The success of the
issue is recognition of the bank's strength and reputation in the international
markets.

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

^ Net profit and earnings per share for the quarter ended 31 March 2004 have
been restated to reflect the adoption of the revised International Accounting
Standard 39 - Financial Instruments: Recognition and Measurement.






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