SABB 1Q06 Results

HSBC Holdings PLC
11 April 2006


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

SABB FIRST QUARTER 2006 RESULTS - HIGHLIGHTS


  • Net profit of SAR986 million (US$263 million) for the quarter ended 31
    March 2006 - up SAR530 million (US$141 million), or 116.3 per cent, over the
    same period in 2005.

  • Customer deposits of SAR54.5 billion (US$14.5 billion) at 31 March
    2006 - up SAR12.2 billion (US$3.3 billion), or 28.8 per cent, over 
    31 March 2005.

  • Loans and advances to customers of SAR39.5 billion (US$10.5 billion) at
    31 March 2006 - up SAR7.2 billion (US$1.9 billion), or 22.3 per cent, over
    31 March 2005.

  • Total assets of SAR73.7 billion (US$19.7 billion) at 31 March 2006 - up
    SAR16.0 billion (US$4.3 billion), or 27.7 per cent, over 31 March 2005.

  • Earnings per share of SAR2.63 (US$0.70) for the quarter ended 31 March 2006
    - up 116.3 per cent from SAR1.22 (US$0.32) over the same period in 2005.^

  ^ Earnings per share for the quarter ended 31 March 2005 have been diluted 
    to reflect a 1:2 bonus issue approved at the Annual General Meeting held 
    on 21 March 2006 and a 5:1 share split effective 8 April 2006.

Commentary

SABB recorded a net profit of SAR986 million (US$263 million) for the quarter
ended 31 March 2006. This represents an increase of 116.3 per cent over the
SAR456 million (US$122 million) earned in the quarter ended 31 March 2005.
Earnings per share increased to SAR2.63 (US$0.70) compared to SAR1.22 (US$0.32)
for the first quarter in 2005.^

Customer deposits increased to SAR54.5 billion (US$14.5 billion) at 31 March
2006 from SAR42.3 billion (US$11.3 billion) at 31 March 2005.

Loans and advances to customers increased to SAR39.5 billion (US$10.5 billion)
at 31 March 2006 from SAR32.3 billion (US$8.6 billion) at 31 March 2005.

The bank's investment portfolio totalled SAR18.3 billion (US$4.9 billion) at 31
March 2006, an increase from SAR16.4 billion (US$4.4 billion) at 31 March 2005.

John Coverdale, managing director, said: "SABB has built upon the momentum
generated last year and has delivered strong first quarter results well above
2005 levels.

"Operating revenues have benefited from the exceptional growth seen in the local
equity market in the first two months of the year, and robust contributions from
our core banking activities. The bank's cost:income ratio has continued to
reduce despite incurring higher overheads to support business growth, and the
loan portfolio remains sound as reflected in the low provision for credit
losses.

"On 11 February 2006 The Saudi British Bank re-branded as SABB and adopted the
HSBC Hexagon logo demonstrating the close relationship that exists between SABB
and our global partner.

"In early March, SABB's credit rating was upgraded from A- to A by Standard &
Poor's and currently equals the highest ranking for any Saudi bank.

"Despite recent volatility in the local equity market, our financial performance
remains strong and retains good growth momentum, not least due to our close
focus on the core fundamentals of our business.

"We thank our customers for their continued support, and our staff for their
commitment and contribution to the bank's success."


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