HONG KONG (Standard&Poor's) March 1, 2005--Standard&Poor's Ratings Services said today that its ratings on Hongkong and Shanghai Banking Corp. Ltd. (HSBC Asia Pacific, foreign currency rating A+/Stable/A-1; local currency rating AA-/Stable/A-1+) are not affected by the bank's announcement of a material improvement in earnings in 2004. Like other financial institutions in Hong Kong, HSBC Asia Pacific benefited in 2004 from an improving operating environment. A decrease in its loan loss provisions of HK$4.2 billion helped to increase the bank's net profit before minorities to Hong Kong dollar (HK$) 37.9 billion in 2004 from HK$29.4 billion in 2003. Noninterest income increased by a strong 30% in 2004 to help HSBC Asia Pacific's operating profit before provisions increase
