Saudi British Bank - First Quarter 2000 Results

HSBC Hldgs PLC
12 April 2000



                 THE SAUDI BRITISH BANK
         FIRST QUARTER 2000 RESULTS - HIGHLIGHTS


*  Net profit of SAR176 million (US$47 million) for the
quarter ended 31 March 2000 - up SAR20 million (US$5
million) or 13.0 per cent over the same period in 1999.

*  Total assets of SAR39.4 billion (US$10.5 billion) at 31
March 2000 - up SAR1.8 billion (US$0.5 billion) or 4.8
per cent over 31 March 1999.

*  Loans and advances to customers of SAR14.3 billion
(US$3.8 billion) at 31 March 2000 - up SAR0.4 billion
(US$0.1 billion) or 2.8 per cent over 31 March 1999.

*  Customer deposits of SAR26.4 billion (US$7.0 billion) at
31 March 2000 - up SAR2.0 billion (US$0.5 billion) or 8.2
per cent over 31 March 1999.


Commentary

The Saudi British Bank (SABB) recorded a net profit of
SAR176 million (US$47 million) for the quarter ended 31
March 2000. This represents an increase of 13.0 per cent
over the SAR156 million (US$42 million) earned in the
quarter ended 31 March 1999.

Supported by successful marketing initiatives, customer
deposits increased to SAR26.4 billion (US$7.0 billion) at
31 March 2000 from SAR24.4 billion (US$6.5 billion) at 31
March 1999.

Loans and advances to customers stood at SAR14.3 billion
(US$3.8 billion) at 31 March 2000 compared to SAR13.9
billion (US$3.7 billion) at 31 March 1999.

David Hodgkinson, managing director, said: 'The strong
oil prices which prevailed through the first quarter have
generated liquidity and prompted an upturn in economic
confidence. Business conditions have improved as a
result.

'Our result for the quarter is encouraging, and we are
grateful for the support of our customers and staff in
achieving it.

'The bank has continued to invest in the development and
delivery of a full range of services through electronic
as well as traditional distribution channels. This
strategy, which covers both personal and corporate
banking, has worked well and continues to provide well
diversified income streams, with growth in operating
revenues significantly outpacing the growth in
overheads.'