SABB 1H2002 Results

HSBC Holdings PLC
9 July 2002

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 2002 RESULTS - HIGHLIGHTS

* Net profit of SAR486.7 million (US$129.8 million) for the six months ended 30
June 2002 - up SAR64.2 million (US$17.1 million) or 15.2 per cent over the same
period in 2001.

* Customer deposits of SAR33.1 billion (US$8.8 billion) at 30 June 2002 - up
SAR2.6 billion (US$0.7 billion) or 8.5 per cent over 30 June 2001.

* Loans and advances to customers of SAR18.6 billion (US$5.0 billion) at 30 June
2002 - up SAR2.5 billion (US$0.7 billion) or 15.5 per cent over 30 June 2001.

* Total value of investment portfolio stood at SAR21.5 billion (US$5.7 billion)
at 30 June 2002 - up SAR0.1 billion (US$0.02 billion) or 0.5 per cent over 30
June 2001.

* Total assets of SAR43.8 billion (US$11.7 billion) at 30 June 2002- up SAR0.4
billion (US$0.1 billion) or 0.9 per cent over 30 June 2001.

* Earnings per share of SAR12.17 (US$3.25) for the six months ended 30 June 2002
- up from SAR10.56 (US$2.82) over the same period in 2001.

Commentary

The Saudi British Bank recorded a net profit of SAR486.7 million (US$129.8
million) for the six months ended 30 June 2002. This represents an increase of
15.2 per cent over the SAR422.5 million (US$112.7 million) earned in the same
period in 2001. Earnings per share increased to SAR12.17 (US$3.25) compared to
SAR10.56 (US$2.82) for the same period last year.

Customer deposits increased to SAR33.1 billion (US$8.8 billion) at 30 June 2002
from SAR30.5 billion (US$8.1 billion) at 30 June 2001, reflecting increased
liquidity in the market.

Loans and advances to customers were higher at SAR18.6 billion (US$5.0 billion)
at 30 June 2002 from SAR16.1 billion (US$4.3 billion) at 30 June 2001 as
personal credit growth remained robust and growth in corporate credit was
achieved.

The bank's investment portfolio totalled SAR21.5 billion (US$5.7 billion) at 30
June 2002, a small increase from SAR21.4 billion (US$5.7 billion) at 30 June
2001.

David Hodgkinson, managing director, said: "Our results for the first six months
are encouraging. Operating revenues, excluding gains on investments, continue to
grow despite the low interest rate environment. While operating costs were
contained, our capital and liquidity ratios remain sound.

"Our Al Amanah range of Islamic banking products has been well-received. We now
have three branches dedicated to this area, in addition to 17 outlets which also
provide Al Amanah banking services.

"Earlier this year, the bank's mutual funds won 14 awards, including nine first
places, at the annual Investment Fund Awards presentation. One of the awards was
for Best Overall Fund Manager for the one-year category in 2001. Assets under
management at 30 June 2002 amounted to SAR5.4 billion, 40 per cent higher than
at 30 June 2001.

"The Directors have approved the payment of a net interim dividend of SAR8.00
per share (gross dividend SAR8.31 per share). This will result in a total gross
interim dividend pay out of SAR332.4 million.

"We are grateful for the support of our customers and the contribution of our
staff over this period."





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