HSBC Associate Results

HSBC Hldgs PLC
18 April 2001


                     THE SAUDI BRITISH BANK
             FIRST QUARTER 2001 RESULTS - HIGHLIGHTS


*    Net profit of SAR196 million (US$52 million) for the quarter
     ended 31 March 2001 - up SAR20 million (US$5 million) or
     11.2 per cent over the same period last year.

*    Customer deposits of SAR30.2 billion (US$8.1 billion) at 31
     March 2001 - up SAR3.9 billion (US$1.1 billion) or 14.8 per
     cent over 31 March 2000.

*    Loans and advances to customers of SAR16.3 billion (US$4.3
     billion) at 31 March 2001 - up SAR0.9 billion (US$0.2
     billion) or 5.7 per cent over 31 March 2000.

*    Total value of the investment portfolio stood at SAR18.3
     billion (US$4.9 billion) at 31 March 2001 - up SAR5.2
     billion (US$1.4 billion) or 40.2 per cent over 31 March
     2000.

*    Total assets of SAR40.8 billion (US$10.9 billion) at 31
     March 2001 - up SAR1.9 billion (US$0.5 billion) or 4.8 per
     cent over 31 March 2000.

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR196
million (US$52 million) for the quarter ended 31 March 2001. This
represents an increase of 11.2 per cent over the SAR176 million
(US$47 million) earned in the same period in 2000.

Customer deposits increased to SAR30.2 billion (US$8.1 billion)
at 31 March 2001 from SAR26.3 billion (US$7.0 billion) at 31
March 2000 as liquidity in the economy increased.

Loans and advances to customers at SAR16.3 billion (US$4.3
billion) increased by SAR0.9 billion (US$0.2 billion) from 31
March 2000.

The total value of SABB's investment portfolio increased to
SAR18.3 billion (US$4.9 billion) at 31 March 2001, from SAR13.1
billion (US$3.5 billion) at 31 March 2000. The bank has taken
advantage of market opportunities to deploy available liquidity
in a diversified investment portfolio.

David Hodgkinson, managing director, said: 'The initial signs of
a global economic slowdown have not had an impact on the local
economy and business levels have remained stable.

'The results for the first quarter of 2001 were achieved despite
a decline in interest rates during the period, and the increase
in operating income is encouraging. We thank our customers for
their continued support and our staff for their dedicated
efforts.'