Saudi British Bk 3Q05 Results

HSBC Holdings PLC
11 October 2005


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 2005 RESULTS
                                        
   • Net profit of SAR1,874 million (US$500 million) for the nine months ended
     30 September 2005 - up SAR632 million (US$168 million) or 50.8 per cent 
     over the same period in 2004.

   • Customer deposits of SAR45.6 billion (US$12.2 billion) at 30 September
     2005 - up SAR6.2 billion (US$1.7 billion) or 15.7 per cent over 
     30 September 2004.

   • Loans and advances to customers of SAR39.6 billion (US$10.6 billion) at
     30 September 2005 - up SAR10.2 billion (US$2.7 billion) or 34.6 per cent
     over 30 September 2004.

   • Total assets of SAR67.4 billion (US$18.0 billion) at 30 September 2005 -
     up SAR15.0 billion (US$4.0 billion) or 28.7 per cent over 30 September 2004.

   • Earnings per share of SAR37.48 (US$9.99) for the nine months ended 30
     September 2005 - up 50.8 per cent from SAR24.85 (US$6.63) over the same
     period in 2004.

(Net profit and earnings per share for the nine months ended 30 September 2004
have been restated to reflect the adoption of the revised International
Accounting Standard 39 - Financial Instruments: Recognition and Measurement).

The Saudi British Bank (SABB) recorded a net profit of SAR1,874 million (US$500
million) for the nine months ended 30 September 2005. This represents an
increase of 50.8 per cent over the SAR1,242 million (US$331 million) earned in
the same period in 2004. Earnings per share increased to SAR37.48 (US$9.99)
compared to SAR24.85 (US$6.63) for the same period last year.

Customer deposits increased to SAR45.6 billion (US$12.2 billion) at 30 September
2005 from SAR39.4 billion (US$10.5 billion) at 30 September 2004.

Loans and advances to customers were higher at SAR39.6 billion (US$10.6 billion)
at 30 September 2005 from SAR29.5 billion (US$7.9 billion) at 30 September 2004.

The bank's investment portfolio totalled SAR16.9 billion (US$4.5 billion) at 30
September 2005, an increase from SAR14.9 billion (US$4.0 billion) at 30
September 2004.

SABB Chairman, Sheikh Abdullah Al Hugail, said: "SABB has registered a record
performance over the first three quarters of 2005. Business growth in Saudi
Arabia remains strong and banking sector revenues have received a significant
boost from very strong investor participation in a buoyant stock market. In
addition to these exceptional earnings, it is important to note that we have
also achieved strong growth in other areas. We will continue to maintain close
focus on the core fundamentals of our business in order to maintain a balanced
earnings and growth momentum.

"Operating revenues have continued to strongly outperform 2004. Despite ongoing
investment in technology, staff and product development, the bank's cost:income
ratio remains well within expected parameters. Customer deposits have continued 
to grow and good macro-economic conditions have fuelled strong customer asset
growth. Asset quality remains sound, with a relatively low level of provisions
for credit losses. Despite the strong asset growth, SABB remains
well-capitalised and liquid.

"During the third quarter of 2005, The Saudi British Bank became the first bank
in the Kingdom to be awarded an 'A' credit rating by the Fitch Ratings agency.
This upgrade acknowledged the bank's continuing strong profitability, improving
asset quality and sound capitalisation, funding and risk management profile.

"We have good business momentum, and are well positioned to develop new products
in response to the needs of our customers in an environment where we expect
strong growth and rapid change. We deeply appreciate the continuing support of
our customers and the sustained effort of our staff in delivering 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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