Saudi British Bank 1999 Annual Results, Highlights

HSBC Hldgs PLC
24 January 2000


                 THE SAUDI BRITISH BANK
            1999 ANNUAL RESULTS - HIGHLIGHTS

* Net profit of SAR661 million (US$176 million) for the
  year ended 31 December 1999 - up SAR49 million (US$13
  million) or 7.9 per cent over 1998.

* Loans and advances to customers of SAR14.7 billion
  (US$3.9 billion) at 31 December 1999 - up SAR1.1 billion
  (US$0.3 billion) or 8.7 per cent over 31 December 1998.

* Customer deposits of SAR25.7 billion (US$6.9 billion) at
  31 December 1999 - up SAR2.0 billion (US$0.6 billion) or
  8.3 per cent over 31 December 1998.

* Total assets of SAR37.7 billion (US$10.1 billion) at 31
  December 1999 - down SAR1.1 billion (US$0.3 billion) or
  2.8 per cent over 31 December 1998.

* Earnings per share of SAR20.64 - up from SAR19.14 in
  1998.

Commentary
The Saudi British Bank (SABB) recorded a net profit of
SAR661 million (US$176 million) for the year ended 31
December 1999. This represents an increase of 7.9 per
cent over the SAR612 million (US$163 million) earned in
the twelve months ended 31 December 1998.

Successful marketing initiatives helped increase customer
deposits to SAR25.7 billion (US$6.9 billion) at 31
December 1999 from SAR23.7 billion (US$6.3 billion).

Growth in loans and advances to customers resulted from
increased demand in an economy which has benefited from
the improvement in oil prices during the year. Loans and
advances to customers stood at SAR14.7 billion (US$3.9
billion) at 31 December 1999 compared to SAR13.6 billion
(US$3.6 billion) at 31 December 1998.

Following the increase in loans and advances to
customers, the charge for provisions for possible credit
losses increased to SAR159 million (US$42 million) for
the year ended 31 December 1999 from SAR113 million
(US$30 million) for the same period last year.

David Hodgkinson, managing director, said: 'Results for
the year are in line with our expectations. We are
encouraged with the growth in our operating revenue,
which reflects the progress achieved in building our
customer base through the range and quality of products
offered.

The improvement in oil prices has improved economic
confidence during the year, providing a stronger
operating environment towards the end of 1999 and a
positive start to 2000.'