Saudi British Bank 1H2004

HSBC Holdings PLC
14 July 2004


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 2004 RESULTS - HIGHLIGHTS

   •Net profit of SAR830 million (US$221 million) for the six months ended 30
    June 2004 - up SAR265 million (US$70 million) or 46.8 per cent over the same
    period in 2003.

   •Customer deposits of SAR39.3 billion (US$10.5 billion) at 30 June 2004 -
    up SAR2.8 billion (US$0.8 billion) or 7.7 per cent compared to 30 June 2003.

   •Loans and advances to customers of SAR28.0 billion (US$7.5 billion) at 30
    June 2004 - up SAR4.7 billion (US$1.3 billion) or 20.2 per cent compared to
    30 June 2003.

   •Total assets of SAR50.0 billion (US$13.3 billion) at 30 June 2004 - up
    SAR3.0 billion (US$0.8 billion) or 6.4 per cent compared to 30 June 2003.

   •Earnings per share of SAR16.60 (US$4.43) for the six months ended 30 June
    2004 - up 46.8 per cent from SAR11.30 (US$3.01) over the same period in 
    2003^.

^Earnings per share for the half year ended 30 June 2003 have been restated as a
result of the 1-for-4 bonus share issue in March 2004.

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR830 million (US$221
million) for the six months ended 30 June 2004. This represents an increase of
46.8 per cent over the SAR565 million (US$151 million) earned in the same period
in 2003. Earnings per share increased to SAR16.60 (US$4.43) compared to SAR11.30
(US$3.01) for the same period last year.

Customer deposits increased to SAR39.3 billion (US$10.5 billion) at 30 June 2004
from SAR36.5 billion (US$9.7 billion) at 30 June 2003.

Loans and advances to customers increased to SAR28.0 billion (US$7.5 billion) at
30 June 2004 from SAR23.3 billion (US$6.2 billion) at 30 June 2003.

The bank's investment portfolio totalled SAR15.4 billion (US$4.1 billion) at 30
June 2004, a decrease from SAR19.6 billion (US$5.2 billion) at 30 June 2003, as
proceeds from maturing investments have been reinvested in the loan portfolio.

Geoff Calvert, managing director, said: "The bank has maintained its strong
start to 2004. Operating revenues continue to grow strongly, especially
non-funds income which has benefited from record volumes in the local equity
markets. Overheads remain in line with our expectations. Provisions for credit
losses remain well below the same period in 2003 reflecting the quality of our
loan portfolio. Capital and liquidity positions remain strong.

"All areas of the bank are performing well and customer satisfaction levels
remain high. We continue to look for new opportunities to enhance our service
and product offerings.

"The Directors have approved the payment of a net interim dividend of SAR9.00
per share (gross dividend of SAR9.41 per share). This represents a total gross
interim dividend payment of SAR470.5 million, an increase of 25.8 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."




                      This information is provided by RNS
            The company news service from the London Stock Exchange