Core subsidiary of HSBC group. Stable and diverse franchise in core markets, particularly the U.K. Strong customer deposit base underpins a robust funding profile. Weaker and less certain economic prospects in the U.K., the bank's home market, following the Brexit vote. Material litigation and customer redress charges weigh on internal capital generation. Sizable corporate and investment banking activity creates some earnings cyclicality. We assess HSBC Bank as a core subsidiary under our group rating methodology criteria and we consequently equalize the long-term counterparty credit rating on the bank with HSBC's 'aa-' GCP. The latter includes one notch of extraordinary support in recognition of the group's expanding ALAC buffer. HSBC group operates in 71 countries and territories among which Hong Kong
