SABB 3Q 2007 Results

HSBC Holdings PLC
22 October 2007


The following news release was issued today by The Saudi British Bank (SABB), a
40 per cent indirectly held associate of HSBC Holdings plc.


                             THE SAUDI BRITISH BANK
                    THIRD QUARTER 2007 RESULTS - HIGHLIGHTS
                                        
•  Net profit of SAR1,902 million (US$507 million) for the nine months ended 30
   September 2007 - down SAR553 million (US$147 million), or 22.5 per cent,
   compared with SAR2,455 million (US$655 million) for the same period in 2006.
   Net profit of SAR651 million (US$174 million) for the three months ended 30
   September 2007 - up SAR5 million (US$1 million), or 0.8 per cent, compared with
   SAR646 million (US$172 million) for the same period in 2006.

•  Earnings per share of SAR5.07 (US$1.35) for the nine months ended 30 September
   2007 - down 22.5 per cent from SAR6.55 (US$1.75) for the same period in 2006.

•  Operating income of SAR3,155 million (US$841 million) for the nine months ended
   30 September 2007 - down SAR450 million (US$120 million), or 12.5 per cent,
   compared with SAR3,605 million (US$961 million) for the same period in 2006.

•  Customer deposits of SAR70.3 billion (US$18.7 billion) at 30 September 2007 - up
   SAR10.6 billion (US$2.8 billion), or 17.8 per cent, compared with SAR59.7
   billion (US$15.9 billion) at 30 September 2006.

•  Loans and advances to customers of SAR54.2 billion (US$14.5 billion) at 30
   September 2007 - up SAR13.0 billion (US$3.5 billion), or 31.6 per cent, from
   SAR41.2 billion (US$11.0 billion) at 30 September 2006.

•  The bank's investment portfolio totalled SAR17.0 billion (US$4.5 billion) at 30
   September 2007 compared with SAR16.6 billion (US$4.4 billion) at 30 September
   2006.

•  Total assets of SAR89.6 billion (US$23.9 billion) at 30 September 2007 - up
   SAR12.3 billion (US$3.3 billion), or 15.9 per cent, over 30 September 2006.

John Coverdale, Managing Director of SABB, said: "I am pleased to report that
SABB's financial performance has shown consistent growth during the first three
quarters of 2007. Despite the reduction in brokerage and mutual funds income for
the nine months of 2007, compared to 2006, SABB delivered third quarter 2007
profits that match those generated in the same three months of last year. This
achievement demonstrates the success of our increased focus on core banking
activities and our investment in staff and systems designed to support those
activities. The 31.6 per cent increase in loans and advances compared to 30
September 2006 reflects the strength of our corporate relationships and has been
assisted by encouraging growth within our retail business, especially our cards
and mortgage offerings. This loan growth has been supported by a 17.8 per cent
increase in customer deposits that has contributed to the SAR341 million, or
18.0 per cent, increase in net interest income. Excluding the lower contribution
from the brokerage and mutual funds businesses, core banking non-funds income
has grown by SAR214 million, or 15.0 per cent, compared to the first nine months
of 2006.

"We have successfully managed cost growth this year following the significant
investment in rebranding, recruitment and systems during 2006. Bad debt levels
are in line with asset growth and increased card and consumer finance market
penetration. General credit quality is sound especially within the corporate
sector which is benefiting from the strong underlying Saudi economy and major
construction and infrastructure development projects. The bank's capital and
liquidity positions remain strong.

"Our insurance company, SABB Takaful, which began trading on 1 July 2007, has
had a very good first three months of business delivering a comprehensive range
of insurance products to both our retail and corporate clients. Together with
our joint venture investment bank, HSBC Saudi Arabia Limited, SABB is well
positioned to deliver a full range of financial services within the Kingdom. As
an affiliate of HSBC, SABB is joining up with the Group's product and
distribution capabilities worldwide to provide global solutions to our clients'
needs.

"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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