FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
April 2008
HSBC Holdings plc
42nd Floor, 8 Canada
Square, London E14 5HQ, England
(Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F).
Form 20-F X Form 40-F ......
(Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934).
Yes....... No X
(If "Yes" is marked, indicate below the file number assigned to the registrant
in connection with Rule 12g3-2(b): 82- ..............)
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
FIRST QUARTER 2008 RESULTS - HIGHLIGHTS
.. Net profit of SAR757 million (US$202 million) for the three months
ended 31 March 2008 - up SAR141 million (US$38 million), or 22.8 per cent,
compared with SAR616 million (US$164 million) for the same period in 2007.
.. Operating income of SAR1,191 million (US$318 million) for the three
months ended 31 March 2008 - up SAR163 million (US$44 million), or 15.9 per
cent, compared with SAR1,028 million (US$274 million) for the same period in
2007.
.. Customer deposits of SAR78.4 billion (US$20.9 billion) at 31 March
2008 - up SAR18.6 billion (US$5.0 billion), or 31.1 per cent, compared with
SAR59.8 billion (US$15.9 billion) at 31 March 2007.
.. Loans and advances to customers of SAR66.6 billion (US$17.8 billion)
at 31 March 2008 - up SAR23.9 billion (US$6.4 billion), or 56.0 per cent, from
SAR42.7 billion (US$11.4 billion) at 31 March 2007.
.. The bank's investment portfolio totalled SAR23.7 billion (US$6.3
billion) at 31 March 2008 compared with SAR17.6 billion (US$4.7 billion) at 31
March 2007.
.. Total assets of SAR106.4 billion (US$28.4 billion) at 31 March 2008 -
up SAR26.9 billion (US$7.2 billion), or 33.8 per cent, over 31 March 2007.
.. Earnings per share of SAR2.02 (US$0.54) for the three months ended 31
March 2008 - up 22.8 per cent from SAR1.64 (US$0.44) for the same period in
2007.
Commentary
SABB recorded a net profit of SAR757 million (US$202 million) for the three
months ended 31 March 2008. This represents a 22.8 per cent increase compared
with the first quarter of 2007 and a 7.4 per cent increase compared with the
fourth quarter of 2007. SABB has achieved profit growth in each of the last five
quarters.
John Coverdale, Managing Director of SABB, said: "SABB's first quarter 2008
results are very encouraging and continue to build upon the strong core business
foundations that we have established. Robust deposit inflows during the quarter
have been more than sufficient to support the quality loan growth and expansion
of our investment portfolio. Our investment strategy continues to focus on Saudi
Government bonds, Treasury bills and investment grade instruments which has
largely protected our shareholders from the global problems surrounding
Structured Investment Vehicles (SIVs) and sub-prime Collateralised Mortgage
Obligations (CMOs).
"The SAR23.9 billion (US$6.4 billion) increase in loans and advances compared to
31 March 2007 reflects the underlying strength of the Saudi economy and
increased project funding requirements from the corporate sector. This asset
growth has contributed to a 20.1 per cent increase in net special commission
compared to the same period in 2007. Excluding the higher contribution from the
brokerage and mutual funds businesses, core banking non-funds income has grown
by SAR105 million (US$28 million), or 63.2 per cent, compared to the first
quarter of 2007.
"Cost growth of SAR35 million (US$9 million) or 10.9 per cent compared to the
first quarter of 2007 is due to an increase in headcount of 379 or 13.6 per
cent. The first quarter 2008 charge for bad debts is SAR25 million (US$7
million) lower than the same period last year due to lower consumer finance
defaults and higher recoveries. The bank's capital and liquidity positions
remain strong.
"In conjunction with our joint venture investment bank, HSBC Saudi Arabia
Limited, and our insurance associate, SABB Takaful, SABB is able to offer a
comprehensive range of financial services within Saudi Arabia. This local
ability is complemented by our close relationship with HSBC with whom we can
deliver joined-up global financial solutions for our valued customers.
"We thank our customers for their continued support, and our staff for their
commitment and contribution to the bank's success."
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
HSBC Holdings plc
By:
Name: P A Stafford
Title: Assistant Group Secretary
Date: 15 April 2008