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
For the month of October, 2006
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 SABB - The Saudi British Bank, a
40 per cent indirectly-held associate of HSBC Holdings plc.
THE SAUDI BRITISH BANK
THIRD QUARTER 2006 RESULTS - HIGHLIGHTS
- Net profit of SAR2,455 million (US$655 million) for the nine months
ended 30 September 2006 - up SAR581 million (US$155 million) or 31.0 per
cent over the same period in 2005.
- Customer deposits of SAR59.7 billion (US$15.9 billion) at 30 September
2006 - up SAR14.1 billion (US$3.8 billion) or 30.9 per cent over 30
September 2005.
- Loans and advances to customers of SAR41.2 billion (US$11.0 billion) at
30 September 2006 - up SAR1.6 billion (US$0.4 billion) or 4.0 per cent over
30 September 2005.
- Total assets of SAR77.5 billion (US$20.7 billion) at 30 September 2006
- up SAR10.1 billion (US$2.7 billion) or 15.0 per cent over 30 September
2005.
- Earnings per share of SAR6.55 (US$1.75) for the nine months ended 30
September 2006 - up 31.0 per cent from SAR5.00 (US$1.33) over the same
period in 2005(^).
(^) Earnings per share for the nine months ended 30 September 2005 have been
adjusted to reflect a 1:2 bonus issue approved at the Annual General Meeting
held on 21 March 2006 and a 5:1 share split effective 8 April 2006.
Commentary
SABB recorded a net profit of SAR2,455 million (US$655 million) for the nine
months ended 30 September 2006. This represents an increase of 31.0 per cent
over the SAR1,874 million (US$500 million) earned in the same period in 2005.
Earnings per share increased to SAR6.55 (US$1.75) compared to SAR5.00 (US$1.33)
for the same period last year(^).
Customer deposits increased to SAR59.7 billion (US$15.9 billion) at 30 September
2006 from SAR45.6 billion (US$12.2 billion) at 30 September 2005.
Loans and advances to customers increased to SAR41.2 billion (US$11.0 billion)
at 30 September 2006 from SAR39.6 billion (US$10.6 billion) at 30 September
2005.
The bank's investment portfolio totalled SAR16.6 billion (US$4.4 billion) at 30
September 2006, down from SAR16.9 billion (US$4.5 billion) at 30 September 2005.
John Coverdale, managing director of SABB, said: "SABB's focus on its core
banking businesses has continued to deliver robust growth and results for its
shareholders. The expected impact on income resulting from a turbulent stock
market in the first half of the year has been absorbed, and SABB is well placed
for future growth.
"Operating revenues have grown by 30.1 per cent compared to the same period in
2005, while our cost base has increased 34.1 per cent. SABB continues to invest
in strategic technology, sales and service delivery channels in order to enhance
customer service and grow the business.
"The credit quality of our various portfolios remains sound and delinquencies
are in line with anticipated increases due to growth in our cards and personal
loan businesses. Deposit growth has been strong over the past few months as
investors have rebalanced their portfolios and several corporate clients have
mobilised funds for significant projects. Capital and liquidity positions remain
very strong.
"The third quarter of 2006 saw the formal establishment of our investment
banking affiliate, HSBC Saudi Arabia Ltd, a key milestone in SABB's evolution
from a traditional bank to a diversified financial services group.
"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: 10 October, 2006