SABB 2006 Results

HSBC Holdings PLC
23 January 2007



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

                             THE SAUDI BRITISH BANK
                        2006 ANNUAL RESULTS - HIGHLIGHTS

-  Net profit of SAR3,040 million (US$811 million) for the year ended 31 December
   2006 - up SAR536 million (US$143 million), or 21.4 per cent, over the same
   period in 2005.

-  Net profit of SAR585 million (US$156 million) for the three months ended 31
   December 2006, compared to SAR630 million (US$168 million) over the same 
   period in 2005.

-  Operating income of SAR4,617 million (US$1,231 million) for the year ended 31
   December 2006 - up SAR797 million (US$213 million), or 20.9 per cent, over the
   same period in 2005.

-  Customer deposits of SAR59.3 billion (US$15.8 billion) at 31 December 2006
   - up SAR10.8 billion (US$2.9 billion), or 22.3 per cent, over 
   31 December 2005.

-  Loans and advances to customers of SAR42.5 billion (US$11.3 billion) at 31
   December 2006 - up SAR1.7 billion (US$0.5 billion), or 4.2 per cent, over 31
   December 2005.

-  Total assets of SAR77.2 billion (US$20.6 billion) at 31 December 2006 - up
   SAR11.3 billion (US$3.0 billion), or 17.1 per cent, over 31 December 2005.

-  Earnings per share of SAR8.11 (US$2.16) for the year ended 31 December 2006
   - up 21.4 per cent from SAR6.68 (US$1.78) over the same period in 2005^.


^Earnings per share for the year ended 31 December 2005 have been adjusted 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 SAR3,040 million (US$811 million) for the year
ended 31 December 2006. This represents an increase of 21.4 per cent over the
SAR2,504 million (US$668 million) earned in the same period in 2005.

Customer deposits increased to SAR59.3 billion (US$15.8 billion) at 31 December
2006 from SAR48.5 billion (US$12.9 billion) at 31 December 2005.

Loans and advances to customers increased to SAR42.5 billion (US$11.3 billion)
at 31 December 2006 from SAR40.8 billion (US$10.9 billion) at 31 December 2005.

The bank's investment portfolio totalled SAR21.7 billion (US$5.8 billion) at 31
December 2006, an increase from SAR16.4 billion (US$4.4 billion) at 31 December
2005.

John Coverdale, managing director of SABB, said: "SABB has successfully managed
to attain remarkable results in 2006, achieving a 21.4 per cent growth in net
profits for its shareholders. These results were achieved due to our increased
focus on and diversification of core banking products and services, which 
positions the bank well for future growth.

"Operating income of SAR4,617 million (US$1,231 million) for the year ended 31
December 2006 is up SAR797 million (US$213 million), or 20.9 per cent, over the
same period in 2005, while the cost base has increased by 16.2 per cent
reflecting SABB's continuing investment in customer service, technology and in
its staff. Total operating expenses have increased by 23.7 per cent.

"Credit quality remains sound. Increased levels of provision against card and
consumer loans relate to business growth and expansion into new market sectors.
Deposit levels remain high due to increased market liquidity and significant
corporate balances relating to major projects in progress. The bank's capital
and liquidity positions are very strong.

"Following the formal establishment of our investment banking affiliate, HSBC
Saudi Arabia Ltd, in the third quarter of 2006, SABB has now been awarded an
insurance operating licence for its SABB Takaful company allowing it to offer a
comprehensive range of Shariah-compliant Takaful products for personal and
corporate customers.

"The SABB Board of Directors has recommended a final net dividend of SAR2.25
(US$0.60) per share for the second half of 2006. This follows the payment
earlier in 2006 of an interim dividend of SAR1.5 (US$0.40) net per share.

"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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