SABB 3Q 2004 Results

HSBC Holdings PLC
12 October 2004


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
                    THIRD QUARTER 2004 RESULTS - HIGHLIGHTS

   •Net profit of SAR1,234 million (US$329 million) for the nine months ended
    30 September 2004 - up SAR322 million (US$86 million) or 35.4 per cent over
    the same period in 2003.

   •Customer deposits of SAR39.4 billion (US$10.5 billion) at 30 September
    2004 - up SAR3.1 billion (US$0.8 billion) or 8.3 per cent over 30 September
    2003.

   •Loans and advances to customers of SAR29.5 billion (US$7.9 billion) at 30
    September 2004 - up SAR5.4 billion (US$1.4 billion) or 22.0 per cent over 30
    September 2003.

   •Total assets of SAR52.3 billion (US$13.9 billion) at 30 September 2004 -
    up SAR4.1 billion (US$1.1 billion) or 8.6 per cent over 30 September 2003.

   •Earnings per share of SAR24.68 (US$6.58) for the nine months ended 30
    September 2004 - up 35.4 per cent from SAR18.24 (US$4.86) over the same
    period in 2003^.

^Earnings per share for the quarter ended 30 September 2003 have been restated
to reflect the 1-for-4 bonus share issue in March 2004.

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR1,234 million (US$329
million) for the nine months ended 30 September 2004. This represents an
increase of 35.4 per cent over the SAR912 million (US$243 million) earned in the
same period in 2003. Earnings per share increased to SAR24.68 (US$6.58) compared
to SAR18.24 (US$4.86) for the same period last year.

Customer deposits increased to SAR39.4 billion (US$10.5 billion) at 30 September
2004 from SAR36.3 billion (US$9.7 billion) at 30 September 2003.

Loans and advances to customers were higher at SAR29.5 billion (US$7.9 billion)
at 30 September 2004 from SAR24.1 billion (US$6.4 billion) at 30 September 2003.

The bank's investment portfolio totalled SAR14.9 billion (US$4.0 billion) at 30
September 2004, a decrease from SAR19.6 billion (US$5.2 billion) at 30 September
2003, as proceeds from maturing investments have been reinvested in the loan
portfolio.

Geoff Calvert, managing director of The Saudi British Bank, said: "Our results
for the nine month period reflect our strong customer base and banking
franchise. Operating revenues, especially non-funds income, are well above the
same period in 2003 and overheads have been contained. Our loan portfolio
remains sound and this is reflected in the low provision for credit losses.
Capital and liquidity positions remain strong.

"We are pleased to have received the Euromoney award for 'Best Bank in the
Kingdom of Saudi Arabia' for the second consecutive year.

"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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