Saudi British Bk 1H01 Results

HSBC Holdings PLC
11 July 2001

                            THE SAUDI BRITISH BANK

                     FIRST HALF 2001 RESULTS - HIGHLIGHTS

* Net profit of SAR422 million (US$113 million) for the first half of 2001 -
up SAR61 million (US$17 million) or 17.1 per cent over the same period in
2000.

* Total assets of SAR43.2 billion (US$11.5 billion) at 30 June 2001 - up
SAR2.2 billion (US$0.6 billion) or 5.4 per cent over 30 June 2000.

 * Total value of investment portfolio stood at SAR21.4 billion (US$5.7
billion) at 30 June 2001 - up SAR5.4 billion (US$1.4 billion) or 33.7 per cent
over 30 June 2000.

 * Loans and advances to customers of SAR16.1 billion (US$4.3 billion) at 30
June 2001 - up SAR1.0 billion (US$0.3 billion) or 6.7 per cent compared to 30
June 2000.

 * Customer deposits of SAR30.5 billion (US$8.1 billion) at 30 June 2001 - up
SAR2.4 billion (US$0.6 billion) or 8.7 per cent over 30 June 2000.

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR422 million (US$113
million) for the six months ended 30 June 2001. This represents an increase of
17.1 per cent over the SAR361 million (US$96 million) earned in the same
period in 2000.

Customer deposits increased to SAR30.5 billion (US$8.1 billion) at 30 June
2001 from SAR28.1 billion (US$7.5 billion) at 30 June 2000, reflecting
increased liquidity in the economy.

Loans and advances to customers increased to SAR16.1 billion (US$4.3 billion)
at 30 June 2001 from SAR15.1 billion (US$4.0 billion) at 30 June 2000. The
bank's personal lending portfolio showed positive growth.

During the first six months of 2001, the bank continued to deploy available
liquidity in a diversified investment portfolio to take advantage of market
opportunities. As a result, the total value of the bank's investment portfolio
increased to SAR21.4 billion (US$5.7 billion) at 30 June 2001 from SAR16.0
billion (US$4.3 billion) at 30 June 2000.

David Hodgkinson, managing director, said: 'We have seen several positive
developments in the Saudi economy during the first half of the year. Strong
oil prices coupled with gas development initiatives have contributed to
increased economic confidence.

'Our results for the first six months are encouraging as our operating
revenues are holding up despite the low interest rate environment. Investment
portfolio disposals have resulted in gains. Our capital and liquidity ratios
remain strong, and the bank has continued its prudent loan loss provisioning
policy.

'The growth in customer deposits is also positive, especially as we seek to
offer our customers enhanced products and superior service. We have launched
Al Amanah Home Lease, a unique product which provides Saudi nationals the
opportunity to acquire homes. This is the first of its kind in the Kingdom and
is fully compliant with Islamic Shariah. SABBNET, our internet banking
product, has been well received. Our aim is to provide customers with a full
range of products and services delivered efficiently through traditional
distribution channels as well as by electronic means.

'The Board of Directors has approved the payment of an interim net dividend of
SAR5 per share (gross dividend SAR5.27 per share). However, it should be noted
that the amount of interim dividend distributed for the first half does not
necessarily reflect the year-end dividend.

'As always, we are grateful for the support of our customers and the
contribution of our staff over this period.'