SABB 2006 Interims

HSBC Holdings PLC
11 July 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.

                             THE SAUDI BRITISH BANK
                      FIRST HALF 2006 RESULTS - HIGHLIGHTS

• Net profit of SAR1,809 million (US$482 million) for the six months ended
  30 June 2006 - up SAR609 million (US$162 million) or 50.8 per cent over the
  same period in 2005.

• Customer deposits of SAR55.1 billion (US$14.7 billion) at 30 June 
  2006 - up SAR10.6 billion (US$2.8 billion) or 23.8 per cent over 30 June 2005.

• Loans and advances to customers of SAR39.1 billion (US$10.4 billion) 
  at 30 June 2006 - up SAR3.7 billion (US$1.0 billion) or 10.5 per cent 
  over 30 June 2005.

• Total assets of SAR72.8 billion (US$19.4 billion) at 30 June 2006 - up 
  SAR12.3 billion (US$3.3 billion) or 20.3 per cent over 30 June 2005.

• Earnings per share of SAR4.82 (US$1.29) for the six months ended 
  30 June 2006 - up 50.8 per cent from SAR3.20 (US$0.85) over the same 
  period in 2005^.

^ Earnings per share for the half year ended 30 June 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 SAR1,809 million (US$482 million) for the six 
months ended 30 June 2006, an increase of 50.8 per cent over the SAR1,200 million 
(US$320 million) earned in the first half of 2005. Earnings per share increased 
to SAR4.82 (US$1.29) compared to SAR3.20 (US$0.85) for the same period last year^.

Customer deposits increased to SAR55.1 billion (US$14.7 billion)at 30 June 2006
from SAR44.5 billion (US$11.9 billion) at 30 June 2005.

Loans and advances to customers increased to SAR39.1 billion (US$10.4 billion) 
at 30 June 2006 from SAR35.4 billion (US$9.4 billion) at 30 June 2005.

The bank's investment portfolio totalled SAR15.3 billion (US$4.1 billion) at 
30 June 2006, against SAR17.0 billion (US$4.5 billion) at 30 June 2005.

John Coverdale, managing director of SABB, said: "We are pleased with SABB's 
performance for the first half of 2006. The bank continues to deliver 
consistently superior returns for its shareholders. These very robust half-year 
results demonstrate the strength of its core and well-diversified banking
businesses.

"This underlying strength has enabled the bank to weather the volatile stock 
market conditions of the last few months and places it on a solid footing for 
future growth. Operating revenues, excluding gains on non-trading investments, 
have grown by over 52 per cent compared to the comparable period in 2005, and 
customer deposit growth accelerated during the year. SABB continues to build on 
its high standards of customer service and invest in product delivery systems. 
Credit quality remains sound and our capital and liquidity positions remain very 
strong.

"In April, SABB issued a EUR325 million five year Floating Rate Note (FRN) under
its US$1 billion Euro Medium Term Note (EMTN) programme. This was the first ever
euro denominated international bond by a Middle Eastern issuer.

"In the recent Euromoney awards, SABB's investment banking joint venture with 
HSBC was named 'Best Investment Bank in Saudi Arabia'. This was the first such 
award by Euromoney and highlights the value to our customers of SABB's investment 
with HSBC in this fast developing and key market sector.

"The Directors have approved the payment of a net interim dividend of SAR1.5 per 
share to SABB shareholders (gross dividend of SAR1.625 per share). This amounts
to a total gross interim dividend payment of SAR609 million and represents 
33.7 per cent of net profits achieved for the first half of 2006.

"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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