The ratings on U.K.-incorporated HSBC Bank PLC reflect its stand-alone credit profile, which is founded on its strong franchise, improving profitability, satisfactory asset quality and capitalization, and comfortable liquidity. The bank is a wholly owned, core subsidiary of HSBC Holdings PLC (A+/Positive/A-1). Its strong franchise is based upon its position as a U.K. clearing bank, although it is the smallest of the "big four" in terms of domestic assets, while its ownership of the HSBC group's continental European and private banking businesses benefit geographic and product diversity. Earnings strengthened in 2004-2005 as the bank adopted a more proactive approach to sales and marketing, resulting in significant balance growth. An exception was corporate and investment banking, where profits fell due to
