Core member of the HSBC group Improving franchise growth Satisfactory capitalization Strong funding and liquidity profiles Higher impairment charge on U.K. unsecured retail lending Scope for improvement in management of business-as-usual costs in certain units U.K.-incorporated HSBC Bank PLC is a wholly owned, direct subsidiary of HSBC Holdings PLC (AA-/Positive/A-1+), the ultimate holding company of the HSBC group. It has a solid franchise in the U.K. and additionally owns the majority of the group's continental European businesses and international private banking activities. Standard&Poor's Ratings Services regards it as a core subsidiary, evidenced by its 32% contribution to consolidated group earnings in 2006, and this relationship benefits the long-term counterparty credit rating on the bank by one notch above
