HSBC 2014 Annual Report Download - page 2

HSBC BANK PLC
Annual Reports and Accounts 2014
Presentation of Information
This document comprises the
Annual Report and
Accounts 2014
for HSBC Bank plc (‘the bank’) and its
subsidiaries (together ‘the group’).
’We’, ‘us’ and ‘our’
refer to HSBC Bank plc together with its subsidiaries.
It
contains the Strategic Report, the Report of the Directors,
the statement of Directors’ Responsibilities
and Financial
Statements, together with the Independent Auditor’s
Report, as required by the
UK Companies Act 2006.
References to ‘HSBC’ or ‘the Group’ within this document
mean HSBC Holdings plc together with its subsidiaries.
HM Treasury has transposed the requirements set out
under CRD IV and issued the Capital Requirements
Country
-by-Country Reporting Regulations 2013,
effective 1 January 2014. The legislation will require
HSBC Holdings to publish additional information, in
respect of the year ended 31 December 2014, by 1 July
2015. This information will be available at the time on
HSBC’s website: www.hsbc.com. This enables HSBC Bank
plc to be exempt from the reporting obligation and
therefore the bank does not separately disclose this
information.
Additional informati
on, including commentary on 2013
versus 2012
and certain statistical and other information,
may be found in a separate
document entitled
‘Additional I
nformation 2014’ and can be found at
www.hsbc.co.uk
.
Cautionary Statement Regarding Forward
-Looking
Statements
This
Annual Report contains certain forward-looking
statements with respect to the financial condition, results
of operations and business of the group.
Statements that are not historical facts, including
statements about the group’s beliefs and expectations,
are forward
-looking statements. Wor
ds such as ‘expects’,
‘anticipates’, ‘intends’, ‘plans’, ‘believes’, ‘seeks’,
‘estimates’, ‘potential’ and ‘reasonably possible’,
variations of these words and similar expressions are
intended to identify forward
-looking statements. These
statements are ba
sed on current plans, estimates and
projections, and therefore undue reliance should not be
placed on them. Forward
-looking statements speak only
as of the date they are made. HSBC Bank plc makes no
commitment to revise or update any forward
-looking
statem
ents to reflect events or circumstances occurring
or existing after the date of any forward
-looking
s
tatement.
Forward
-looking statements involve inherent risks and
uncertainties. Readers are cautioned that a number of
factors could cause actual results to
differ, in some
instances materially, from those anticipated or implied in
any forward
-looking statement.
Contents
Strategic Report
1
Highlights
1
Purpose and strategic objectives
2
Products and services
5
Strategic priorities
8
Strategic direction
10
Key performance indicators
11
Business review
13
Economic background
13
Financial summary
13
Income Statement
13
Review of business performance
14
Balance sheet
16
Performance and business review
18
Principal risks and uncertainties
2
5
Report of the Directors
31
Risk Management
31
Managing Risk
31
Areas of special interest
3
2
Credit risk
37
Securitisation exposures and other structured products
5
8
Liquidity and funding risk
5
9
Market risk
67
Operational risk
74
Risk management of insurance operations
77
Other material risks
81
Capital Management
84
Capital management and allocation
84
Regulation and supervision
86
Capital structure
87
Risk weighted assets
88
Regulatory capital developments
90
Corporate Governance
94
Directors
9
4
Board of directors and board committees
96
Internal control
97
Sustainability
100
Statement of Directors’ Responsibilities
103
Independent Auditor’s Report
104
Financial Statements
105
Notes on the Financial Statements
113