Core member of the HSBC group Improving franchise growth, revenue momentum, and cost efficiency Satisfactory capitalization Strong funding and liquidity profiles Relatively high exposure to U.K. consumer credit, on which impairment losses have materially increased Investment banking expansion yet to deliver targeted returns The ratings on U.K.-incorporated HSBC Bank PLC reflect its strong franchise, improving profitability, satisfactory capitalization, and strong liquidity. Its overall asset quality is satisfactory, but features a large exposure to the challenging U.K. consumer credit market, which was the cause of a significant increase in the loan impairment charge in 2005. The bank is a wholly owned, core subsidiary of HSBC Holdings PLC (AA-/Stable/A-1+). Its strong franchise is based on its position as a U.K. clearing bank,
