Saudi British Final Results

HSBC Holdings PLC
16 January 2002

The following news release was issued today by The Saudi British Bank, an
indirectly-held 40 per cent associate of HSBC Holdings plc.

                            THE SAUDI BRITISH BANK

                       2001 ANNUAL RESULTS - HIGHLIGHTS




* Net profit of SAR830 million (US$221 million) for the year ended 31December
2001 - up SAR87 million (US$23 million) or 11.7 per cent over 2000.

* Customer deposits of SAR31.5 billion (US$8.4 billion) at 31 December 2001 -
up SAR3.1 billion (US$0.8 billion) or 10.9 per cent over 31 December 2000.

* Loans and advances to customers of SAR16.0 billion (US$4.2 billion) at 31
December 2001 - up SAR0.1 billion (US$0.03 billion) or 0.6 per cent over 31
December 2000.

* Total value of investment portfolio stood at SAR21.8 billion (US$5.8
billion) at 31 December 2001 - up SAR3.4 billion (US$0.9 billion) or 18.5 per
cent over 31 December 2000.

* Total assets of SAR41.9 billion (US$11.2 billion) at 31 December 2001 - down
SAR1.4 billion (US$0.4 billion) or 3.2 per cent below 31 December 2000.

* Earnings per share of SAR20.75 - up from SAR18.56 (adjusted for increased
capital following a 1:4 bonus share issue in March 2001).

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR830 million (US$221
million) for the year ended 31 December 2001. This represents an increase of
11.7 per cent over the SAR743 million (US$198 million) earned in 2000.

Customer deposits increased to SAR31.5 billion (US$8.4 billion) at 31 December
2001 from SAR28.4 billion (US$7.6 billion) at 31 December 2000, despite the
continuing decline in interest rates.

Loans and advances to customers increased to SAR16.0 billion (US$4.2 billion)
at 31 December 2001 from SAR15.9 billion (US$4.2 billion) at 31 December 2000.
There has been a slow pick up in demand for commercial credit. The bank's
personal lending portfolio recorded steady growth.

The bank continued to deploy available liquidity in a diversified investment
portfolio during 2001. As a result, the total value of the bank's investment
portfolio increased to SAR21.8 billion (US$5.8 billion) at 31 December 2001
from SAR18.4 billion (US$4.9 billion) at 31 December 2000.

The basis of measurement and recognition of financial instruments has changed
from the year 2000 as a result of the first implementation of International
Accounting Standard - 39 in 2001.

David Hodgkinson, managing director, said: 'Our performance for 2001 was in
line with our expectations. Despite lower interest rates, an increase in
operating revenues was recorded. The increase in net fees and commission was
encouraging and 'funds under management' increased by 87 per cent.

'New products launched during the year were well received. Our Al-Amanah range
of products allows customers to opt for their preferred method of investment
or financing. In particular, the Al-Amanah Home Ownership scheme launched
during the year caters to the growing customer demand for housing in Saudi
Arabia.

'We aim to provide our customers with improved services through a broad range
of delivery channels via traditional and electronic means, and market research
indicates that this is proving popular with customers.

'The Board has recommended a final net dividend of SAR9 per share. The total
net dividend for 2001 will amount to SAR14 per share as an interim net
dividend of SAR5 was paid in August 2001. The net dividend is payable on the
bank's enhanced capital which increased by 25 per cent in 2001 after the issue
of bonus shares in the ratio 1:4. As a result, the total gross dividend will
increase by 34 per cent over 2000.

'We thank our customers for their steadfast support and our staff for their
dedicated efforts during the year.'