SABB FY03 Results

HSBC Holdings PLC
27 January 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
                        2003 ANNUAL RESULTS - HIGHLIGHTS

   •Net profit of SAR1,258 million (US$335 million) for the year ended 31
    December 2003 - up SAR286 million (US$76 million) or 29.4 per cent over
    2002.

   •Customer deposits of SAR36.1 billion (US$9.6 billion) at 31 December 2003
    - up SAR1.1 billion (US$0.3 billion) or 3.1 per cent over 31 December 2002.

   •Loans and advances to customers of SAR26.1 billion (US$7.0 billion) at 31
    December 2003 - up SAR5.7 billion (US$1.6 billion) or 27.9 per cent over 31
    December 2002.

   •Total assets of SAR46.1 billion (US$12.3 billion) at 31 December 2003
    compared with SAR46.2 billion (US$12.3 billion) at 31 December 2002.

   •Earnings per share of SAR31.45 (US$8.39) for the year ended 31 December
    2003 - up 29.4 per cent from SAR24.31 (US$6.48) over 2002.

Commentary

The Saudi British Bank (SABB) recorded a net profit of SAR1,258 million (US$335
million) for the year ended 31 December 2003. This represents an increase of
29.4 per cent over the SAR972 million (US$259 million) earned in 2002. Earnings
per share for the year ended 31 December 2003 increased to SAR31.45 (US$8.39)
compared to SAR24.31 (US$6.48) for 2002.

Customer deposits increased to SAR36.1 billion (US$9.6 billion) at 31 December
2003 from SAR35.0 billion (US$9.3 billion) at 31 December 2002.

Loans and advances to customers increased to SAR26.1 billion (US$7.0 billion) at
31 December 2003 from SAR20.4 billion (US$5.4 billion) at 31 December 2002.

The bank's investment portfolio totalled SAR16.0 billion (US$4.3 billion) at 31
December 2003, a decrease from SAR20.4 billion (US$5.4 billion) at 31 December
2002, as proceeds from sales and maturities have been reallocated to meet the
growth in the loan portfolio.

Geoff Calvert, managing director of SABB, said: "Growth in operating revenues
has been robust and operating costs have been contained. Capital and liquidity
positions remain strong; the credit quality of our loan portfolio remains sound.

"All our banking services continue to show solid growth. Demand for our Al
Amanah Islamic banking products has been strong and we have successfully
expanded the product range.

"In 2003, the bank received Euromoney awards for the 'Best Bank' and the 'Best
Equities House' in Saudi Arabia.

"The Board has recommended a bonus issue of one share for every four and a final
net dividend of SAR11 per share. The total net dividend for 2003 will amount to
SAR20 per share as an interim net dividend of SAR9 per share was paid in August
2003. However, the bonus shares issued will not be eligible for dividends issued
in respect of 2003.

"We would like to thank our customers for their support during the year and to
thank our staff for their continued commitment to customer service, which is
reflected in these results."




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