SABB 3rd Quarter 2002 Results

HSBC Holdings PLC
09 October 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

                    THIRD QUARTER 2002 RESULTS - HIGHLIGHTS

* Net profit of SAR736 million (US$196 million) for the nine months ended 30
September 2002 - up SAR97 million (US$26 million) or 15.2 per cent over the same
period in 2001.

* Earnings per share of SAR18.39 (US$4.90) for the nine months ended 30
September 2002 - up 15.2 per cent from SAR15.97 (US$4.26) for the same period in
2001.

* Customer deposits of SAR34.2 billion (US$9.1 billion) at 30 September 2002 -
up SAR4.4 billion (US$1.2 billion) or 14.8 per cent over 30 September 2001.

* Loans and advances to customers of SAR19.3 billion (US$5.1 billion) at 30
September 2002 - up SAR2.8 billion (US$0.7 billion) or 17.0 per cent over 30
September 2001.

* Total assets of SAR43.8 billion (US$11.7 billion) at 30 September 2002 - up
SAR0.9 billion (US$0.3 billion) or 2.1 per cent over 30 September 2001.

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR736 million (US$196
million) for the nine months ended 30 September 2002. This represents an
increase of 15.2 per cent over the SAR639 million (US$170 million) earned in the
same period in 2001. Earnings per share increased to SAR18.39 (US$4.90) compared
to SAR15.97 (US$4.26) for the same period last year.

Customer deposits increased to SAR34.2 billion (US$9.1 billion) at 30 September
2002 from SAR29.8 billion (US$7.9 billion) at 30 September 2001, reflecting
increased liquidity in the market.

Loans and advances to customers were higher at SAR19.3 billion (US$5.1 billion)
at 30 September 2002 from SAR16.5 billion (US$4.4 billion) at 30 September 2001,
reflecting growth in the corporate and Al Amanah Islamic banking products.

The bank's investment portfolio totaled SAR19.4 billion (US$5.2 billion) at 30
September 2002, a decrease from SAR22.1 billion (US$5.9 billion) at 30 September
2001, as the bank increased liquidity in light of increased uncertainty in world
financial markets.

David Hodgkinson, managing director, said: "Despite continuing uncertainty in
financial markets around the world, the domestic market remained stable and our
results for the nine months ended 30 September 2002 are encouraging. Net
commission and non-fund income continue to grow, while operating costs have been
contained. Capital and liquidity ratios remain strong.

"In July, the bank opened a new Al Amanah Islamic branch in Madinah, and
continues to expand the Al Amanah range of Islamic banking products available to
its customers. The bank is also committed to continually improving customer
service, illustrated by the recent introduction of a 24-hour automated cash
deposit service which is the first of its kind in the Kingdom of Saudi Arabia.

"We would like to thank our customers for their continuing support, and our
staff for their commitment and contribution to the bank's success."


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