Saudi Br.Bank Interim Report

HSBC HOLDINGS PLC
13 July 1999

Our 40 per cent-owned associate, The Saudi British Bank, has today issued the
following announcement:


                 THE SAUDI BRITISH BANK
                 FIRST HALF 1999 RESULTS

Highlights

* Net profit of SAR333 million (USD89 million) for the
  first half of 1999 - up SAR30 million (USD8 million), or
  10.1 per cent, over the same period in 1998.

* Total assets of SAR40.0 billion (USD10.7 billion) at
  30 June 1999 - up SAR3.7 billion (USD1.0 billion), or
  10.2 per cent, over 30 June 1998.

* Loans and advances to customers of SAR14.5 billion
  (USD3.9 billion) at 30 June 1999 - up SAR3.4 billion
  (USD0.9 billion), or 30.8 per cent, over 30 June 1998.

* Customer deposits of SAR24.3 billion (USD6.5
  billion) at 30 June 1999 - up SAR0.7 billion (USD0.2
  billion), or 2.9 per cent, over 30 June 1998.

Commentary
The Saudi British Bank (SABB) recorded net profits of
SAR333 million (USD89 million) for the six months ended
30 June 1999, representing a 10.1 per cent increase over
the SAR303 million (USD81 million) earned in the first
half of 1998.

Customer deposits increased to SAR24.3 billion (USD6.5
billion) from SAR23.6 billion (USD6.3 billion) at 30 June
1998, despite increased competition in the local market.

Increased customer demand resulted in significant growth
in loans and advances (net of provisions for bad and
doubtful debts). Loans and advances stood at SAR14.5
billion (USD3.9 billion) at 30 June 1999 compared to
SAR11.1 billion (USD3.0 billion) at 30 June 1998.

In line with the growth in loans and advances, the total
value of SABB's securities investment portfolio declined
to SAR16.1 billion (USD4.3 billion) at 30 June 1999,
compared to SAR17.2 billion (USD4.6 billion) at 30 June
1998.

General provisions increased in line with loan portfolio
growth. As a result, the charge for provisions for
possible credit losses increased to SAR61 million (USD16
million) in the first half of 1999 from SAR51 million
(USD14 million) for the same period last year.

Sandy Flockhart, Managing Director, said: 'Growth in the
first half matched our expectations. The bank continues
to focus on providing quality products and services
across our customer base. We are pleased with the
progress made in the development of our product lines,
particularly in personal and investment banking. This
growth enables us to diversify our income streams and
spread risks which, over time, will result in improved
returns for our shareholders.'