Saudi Brit. Bk. 1st Qtr Rslts

HSBC Hldgs PLC
11 July 2000

                 THE SAUDI BRITISH BANK
                 FIRST HALF 2000 RESULTS


Highlights

*  Net profit of SAR361 million (US$96 million) for the
first half of 2000 - up SAR28 million (US$7 million) or
8.3 per cent over the same period in 1999.

*  Total assets of SAR41.5 billion (US$11.1 billion) at
30 June 2000 - up SAR1.5 billion (US$0.4 billion) or 3.8
per cent over 30 June 1999.

*  Total value of investment portfolio stood at SAR19.9
billion (US$5.3 billion) at 30 June 2000 - up SAR3.8
billion (US$1.0 billion) or 23.3 per cent over 30 June
1999.

*  Loans and advances to customers of SAR13.7 billion
(US$3.6 billion) at 30 June 2000 - down SAR0.8 billion
(US$0.2 billion) or 5.4 per cent compared to 30 June
1999.

*  Customer deposits of SAR28.1 billion (US$7.5 billion)
at 30 June 2000 - up SAR3.8 billion (US$1.0 billion) or
15.6 per cent over 30 June 1999.


Commentary

The Saudi British Bank (SABB) recorded a net profit of
SAR361 million (US$96 million) for the six months ended
30 June 2000. This represents an increase of 8.3 per cent
over the SAR333 million (US$89 million) earned in the
first half of 1999.

Customer deposits increased to SAR28.1 billion (US$7.5
billion) at 30 June 2000 from SAR24.3 billion (US$6.5
billion) at 30 June 1999, reflecting a positive response
from customers to enhanced products and services.

Loans and advances to customers decreased to SAR13.7
billion (US$3.6 billion) at 30 June 2000 from SAR14.5
billion (US$3.8 billion) at 30 June 1999, as scheduled
loan repayments were not matched by demand for new loans.
Personal loan growth however was encouraging.

During the first six months, the bank was able to utilise
available liquidity in an existing diversified portfolio
to take advantage of market opportunities. As a result,
the total value of the bank's investment portfolio
increased to SAR19.9 billion (US$5.3 billion) at 30 June
2000 from SAR16.1 billion (US$4.3 billion) at 30 June
1999.

David Hodgkinson, managing director, said: 'We have seen
business conditions improve during the first half of the
year. Strong oil prices coupled with new investment and
tax regulations have contributed to the upturn in
economic confidence.

'Our results for the first six months, which were
accompanied by an encouraging increase in operating
revenues, were in line with our expectations. The growth
in customer deposits is also positive, reflecting
increased liquidity in the banking sector.

'The bank's strategy of establishing well-diversified
income streams continues to work well. Our aim is to
provide customers with a full range of products and
services delivered efficiently through traditional
distribution channels as well as by electronic means.

We are grateful for the support of our customers and the
contribution of our staff over this period.'