Saudi British Bank Q4 2005

HSBC Holdings PLC
24 January 2006


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
                        2005 ANNUAL RESULTS - HIGHLIGHTS
                                        
• Net profit of SAR2,504 million (US$668 million) for the year ended 31
  December 2005 - up SAR858 million (US$229 million) or 52.2 per cent over
  2004.

• Customer deposits of SAR48.5 billion (US$12.9 billion) at 31 December 2005 - 
  up SAR3.8 billion (US$1.0 billion) or 8.5 per cent over 31 December 2004.

• Loans and advances to customers of SAR40.8 billion (US$10.9 billion) at 
  31 December 2005 - up SAR9.2 billion (US$2.5 billion) or 29.1 per cent over
  31 December 2004.

• Total assets of SAR65.9 billion (US$17.6 billion) at 31 December 2005 - up 
  SAR8.0 billion (US$2.1 billion) or 13.8 per cent over 31 December 2004.

• Earnings per share of SAR50.09 (US$13.36) for the year ended 31 December 2005
  - up 52.2 per cent from SAR32.92 (US$8.78) over 2004.^

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

                                   Commentary
                                        
The Saudi British Bank (SABB) recorded a net profit of SAR2,504 million 
(US$668 million) for the year ended 31 December 2005. This represents an 
increase of 52.2 per cent over the SAR1,646 million (US$439 million) earned 
in 2004.  Earnings per share increased to SAR50.09 (US$13.36) compared
to SAR32.92 (US$8.78) for the previous year.

Customer deposits increased to SAR48.5 billion (US$12.9 billion) at 
31 December 2005 from SAR44.7 billion (US$11.9 billion) at 31 December 2004.

Loans and advances to customers increased to SAR40.8 billion (US$10.9 billion) 
at 31 December 2005 from SAR31.6 billion (US$8.4 billion) at 31 December 2004.

The bank's investment portfolio totalled SAR16.4 billion (US$4.4 billion) 
at 31 December 2005, an increase from SAR14.7 billion (US$3.9 billion) 
at 31 December 2004.

John Coverdale, Managing Director of The Saudi British Bank, said: " SABB has 
achieved excellent results for 2005 as it was well-positioned to serve its 
customers during a year of strong economic expansion and stock market 
performance in Saudi Arabia. In addition to the momentum provided by new
product and revenue streams, the bank has maintained a close focus on the core 
fundamentals of our business and product range to ensure balanced growth.

"All our business and product segments have performed well and carry good 
momentum into 2006. Credit and investment portfolios are sound and prudently 
managed. Capital and liquidity remain strong, and we plan to utilise some of our
2005 earnings to further increase our paid-up capital via a bonus share issue. 
During 2005, the bank has also invested in staffing, technology infrastructure 
and the improvement of facilities and operational processes to enhance capacity
and service levels for future growth.

"Notable among many highlights of 2005 was a credit ratings upgrade from 
Fitch Ratings, and approval for establishing the first full-service, independent 
investment bank in Saudi Arabia as a joint venture between SABB and the 
HSBC Group. I am confident that bank is now very well placed to serve the
growing domestic and global needs of our customers.

"The Directors have recommended a final net dividend of SAR5 per share. 
The total net dividend for 2005 will amount to SAR15 per share as an interim net 
dividend of SAR10 per share was paid in July 2005.

"The Directors and management of The Saudi British Bank would
like to thank our customers for their continued loyalty and
support, and our staff for their dedication and effort in
achieving these excellent results."

Note to editors:

HSBC Holdings plc
HSBC Holdings plc serves more than 110 million customers worldwide through more 
than 9,700 offices in 77 countries and territories in Europe, the Asia-Pacific 
region, the Americas, the Middle East and Africa. With assets of US$1,467 
billion at 30 June 2005, HSBC is one of the world's largest banking and 
financial services organisations. HSBC is marketed worldwide as 'the world's 
local bank'.



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