SABB increases paid-up captl

HSBC Holdings PLC
09 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 INCREASES PAID-UP CAPITAL
                              TO SAR2,500 MILLION

The Board of Directors of The Saudi British Bank (SABB) has recommended a bonus
issue of one share for every four shares held.

The issue is subject to shareholder approval at the bank's EGM to be held on 15
March 2004. It is also subject to obtaining the necessary approvals from
regulatory authorities.

Taking into account this bonus issue, SABB's paid-up capital will increase by 25
per cent from SAR2,000 million (US$533 million) to SAR2,500 million (US$667
million). The new shares will not be eligible for dividends in respect of 2003
but will be entitled to share in distributions in respect of 2004 onwards.

Sheikh Abdullah Al Hugail, chairman of The Saudi British Bank, said: "This issue
highlights the strength of the bank's capital base and market position."

Note to editors:
HSBC Holdings plc
The Saudi British Bank is a 40 per cent, indirectly-held associate of HSBC
Holdings plc which, with over 9,500 offices in 79 countries and territories, and
assets of US$983 billion at 30 June 2003, is one of the world's largest banking
and financial services organisations.


                      This information is provided by RNS
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