SABB 1H2003 Results

HSBC Holdings PLC
15 July 2003



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

                      FIRST HALF 2003 RESULTS - HIGHLIGHTS

*Net profit of SAR565 million (US$151 million) for the six months ended 30 June
2003 - up SAR78 million (US$21 million) or 16.1 per cent over the same period in
2002.

*Customer deposits of SAR36.5 billion (US$9.7 billion) at 30 June 2003 - up
SAR3.4 billion (US$0.9 billion) or 10.3 per cent over 30 June 2002.

*Loans and advances to customers of SAR23.3 billion (US$6.2 billion) at 30 June
2003 - up SAR4.7 billion (US$1.2 billion) or 25.1 per cent over 30 June 2002.

*Total assets of SAR47.0 billion (US$12.5 billion) at 30 June 2003 - up SAR3.2
billion (US$0.8 billion) or 7.2 per cent over 30 June 2002.

*Earnings per share of SAR14.13 (US$3.77) for the six months ended 30 June 2003
- up 16.1 per cent compared to SAR12.17 (US$3.25) for the same period in 2002.

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR565 million (US$151
million) for the six months ended 30 June 2003. This represents an increase of
16.1 per cent over the SAR487 million (US$130 million) earned in the same period
in 2002. Earnings per share increased to SAR14.13 (US$3.77) compared to SAR12.17
(US$3.25) for the same period last year.

Customer deposits increased to SAR36.5 billion (US$9.7 billion) at 30 June 2003
from SAR33.1 billion (US$8.8 billion) at 30 June 2002.

Loans and advances to customers were higher at SAR23.3 billion (US$6.2 billion)
at 30 June 2003 from SAR18.6 billion (US$5.0 billion) at 30 June 2002,
reflecting strong growth across all customer segments, especially in personal
financial services.

The bank's investment portfolio totalled SAR19.6 billion (US$5.2 billion) at 30
June 2003, a decrease from SAR21.5 billion (US$5.7 billion) at 30 June 2002, as
proceeds from maturing investments were used to meet the strong growth in loans
and advances.

Geoff Calvert, managing director, said: "The bank's strong performance in the
first six months of the year is especially encouraging given recent events in
the region. Growth in operating revenues has been achieved and operating costs
have been contained, while the bank continues to invest in its infrastructure.
Our capital and liquidity ratios remain sound.

"All areas of the bank are performing well, particularly personal financial
services and corporate banking, as the bank continues to focus on customer
service.

"Growth of our Al Amanah Islamic Services has been strong and new products have
been successfully introduced to meet an increasingly sophisticated market for
Shariah compliant products.

"The Directors have approved the payment of a net interim dividend of SAR9.00
per share (gross dividend SAR9.35 per share). This represents a total gross
interim dividend payout of SAR374 million, an increase of 12.5 per cent over the
same period last year.

"We thank our customers for their support, and our staff for their commitment
and contribution during this period."


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