The ratings on U.K.-incorporated HSBC Bank PLC recognize its stand-alone credit profile, which reflects its excellent liquidity, solid capitalization, and robust earnings. The bank's strong franchise is based upon its position as a U.K. clearing bank, albeit the smallest of the "big four", while its ownership of HSBC Group's continental European and private banking businesses benefit geographic and product diversity. A key strength of the bank is its comfortable liquidity profile, as indicated by its 91% loan-to-deposit ratio at year-end 2004. Asset growth has historically been modest, but a more aggressive approach to personal and commercial lending was adopted throughout 2004, and the bank also acquired M&S Money, the financial services business of U.K. retailer Marks&Spencer PLC (BBB/Stable/A-2).
