Saudi British Bank Results

HSBC Holdings PLC
16 October 2001



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

                   THIRD QUARTER 2001 RESULTS - HIGHLIGHTS

* Net profit of SAR639 million (US$170 million) for the third quarter of 2001
- up SAR79 million (US$21 million) or 14.1 per cent over the same period in
2000.

* Total assets of SAR42.7 billion (US$11.4 billion) at 30 September 2001 -
down SAR0.4 billion (US$0.1 billion) or 0.9 per cent below 30 September 2000.

* Total value of investment portfolio stood at SAR22.0 billion (US$5.9
billion) at 30 September 2001 - up SAR4.2 billion (US$1.2 billion) or 23.6 per
cent over 30 September 2000.

* Loans and advances to customers of SAR16.5 billion (US$4.4 billion) at 30
September 2001 - up SAR0.8 billion (US$0.2 billion) or 5.1 per cent compared
to 30 September 2000.

* Customer deposits of SAR29.8 billion (US$7.9 billion) at 30 September 2001 -
up SAR2.2 billion (US$0.6 billion) or 8.0 per cent over 30 September 2000.

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR639 million (US$170
million) for the nine months ended 30 September 2001. This represents an
increase of 14.1 per cent over the SAR560 million (US$149 million) earned in
the same period in 2000.

Customer deposits increased to SAR29.8 billion (US$7.9 billion) at 30
September 2001 from SAR27.6 billion (US$7.3 billion) at 30 September 2000,
despite the continuing decline in interest rates.

Loans and advances to customers increased to SAR16.5 billion (US$4.4 billion)
at 30 September 2001 from SAR15.7 billion (US$4.2 billion) at 30 September
2000. There has been a slow pick-up in demand for commercial credit while the
bank's personal lending portfolio recorded steady growth.

During the first nine months of 2001, the bank continued to deploy available
liquidity in a diversified investment portfolio. As a result, the total value
of the bank's investment portfolio increased to SAR22.0 billion (US$5.9
billion) at 30 September 2001 from SAR17.8 billion (US$4.7 billion) at 30
September 2000.

David Hodgkinson, managing director, said: 'Recent events have made the
immediate economic outlook less certain, although the future prospects for
Saudi Arabia remain positive. The bank's business outlook also remains
positive and our capital and liquidity ratios are strong.

'We have been encouraged by the success of our increased range of products and
services, including the recently launched Home Purchase Finance. These are
designed to meet the more sophisticated needs of customers, and are delivered
efficiently through traditional distribution channels as well as by electronic
means.

'We would like to thank our customers for their continuing support, and our
staff for their vital contribution to the bank's success.'