HSBC Bank plc
Pillar 3 Disclosures at 30 September 2023 
Registered number - 00014259


Contents
2
Introduction
2
Pillar 3 disclosures and governance
3
Key metrics
4
Risk-weighted assets
5
Credit risk (including amounts below the thresholds for deduction)
5
Counterparty credit risk (including settlement risk)
5
Securitisation
5
Market risk
5
Operational risk
6
Liquidity
6
Management of liquidity and funding risk
8
Cautionary statement regarding forward-looking statements
10
Abbreviations
Tables
3
1
Key metrics (KM1/IFRS9-FL)
4
2
Overview of risk-weighted exposure amounts (OV1)
5
3
RWA flow statements of credit risk exposures under IRB 
approach (CR8)
5
4
RWA flow statements of counterparty credit risk exposures 
under the IMM (CCR7)
6
5
RWA flow statements of market risk exposures under IMA 
(MR2-B)
7
6
Level and components of HSBC Bank plc liquidity coverage 
ratio (LIQ1)
This document comprises the 30 September 2023 Pillar 3 disclosures 
for HSBC Bank plc.
Unless the context requires otherwise, ‘HSBC Holdings’ means HSBC 
Holdings plc, and ‘HSBC’ and the ‘ HSBC Group’ refer to HSBC 
Holdings together with its subsidiaries; similarly, ‘HSBC Bank’ and the 
‘bank’ mean HSBC Bank plc, and the ‘group’ refers to HSBC Bank 
together with its subsidiaries.
When used in the terms ‘shareholders’ equity’ and ‘total 
shareholders’ equity’, ‘shareholders’ means holders of HSBC Bank 
ordinary shares and those preference shares and capital securities 
issued by HSBC Bank classified as equity.
The abbreviations ‘£m’ and ‘£bn’ represent millions and billions 
(thousands of millions) of GB pounds respectively.
Pillar 3 Disclosures at 30 September 2023
1
HSBC Bank plc Pillar 3 Disclosures at 30 September 2023


Introduction
Pillar 3 disclosures and governance
Regulatory framework for disclosure
We are supervised on a consolidated basis in the United Kingdom 
('UK') by the Prudential Regulation Authority (‘PRA’), which receives 
information on the capital and liquidity adequacy of, and sets capital 
and liquidity requirements for, the Group as a whole. Individual 
banking subsidiaries are directly regulated by their local banking 
supervisors, which set and monitor local capital adequacy 
requirements. In most jurisdictions, non-banking financial subsidiaries 
are also subject to the supervision and capital and liquidity 
requirements of local regulatory authorities.
Any references to EU regulations and directives (including technical 
standards) should, as applicable, be read as references to the UK’s 
version of such regulation and/or directive, as onshored into UK law 
under the European Union (Withdrawal) Act 2018, and as may be 
subsequently amended under UK law. We refer to the regulatory 
requirements of the PRA Rulebook, Capital Requirements Regulation 
and Directive, and the CRR II regulation (EU 2019/876) as ‘CRR II’.
We calculate the bank's capital for prudential regulatory reporting 
purposes using the Basel III framework of the Basel Committee on 
Banking Supervision (‘Basel’), as implemented in the UK. The Basel III 
framework is structured around three ‘pillars’: the Pillar 1 minimum 
capital requirements and Pillar 2 supervisory review process are 
complemented by Pillar 3 market discipline. The aim of Pillar 3 is to 
produce disclosures that allow market participants to assess the 
scope of application by banks of the Basel framework and the rules in 
their jurisdiction, their capital condition, risk exposures and risk 
management processes, and hence their capital adequacy.
Our Pillar 3 Disclosures at 30 September 2023 comprises both 
quantitative and qualitative information required under Pillar 3. These 
disclosures are made in accordance with part Eight of CRR II and use 
the PRA’s disclosure templates and instructions. They are 
supplemented by specific additional requirements of the PRA and 
discretionary disclosures on our part.
The Pillar 3 disclosures are governed by the disclosure policy 
framework approved by the HSBC Group Audit Committee.
Comparatives
To give insight into movements during the year, we provide 
comparative figures, commentary on variances and flow tables for 
capital requirements. In all tables where the term 'capital 
requirements' is used, this represents the minimum total capital 
charge set at 8% of risk-weighted assets ('RWAs') by article 92 of 
CRR II.
The regulatory numbers and ratios presented in this document were 
accurate as at the date of reporting. Small changes may exist 
between these numbers and ratios and those subsequently 
submitted in regulatory filings. Where differences are significant, we 
will restate in subsequent periods. 
Where disclosures have been enhanced, or are new, we do not 
generally restate or provide comparatives. Wherever specific rows 
and columns in the tables prescribed are not applicable or immaterial 
to our activities, we omit them and follow the same approach for 
comparatives.
Frequency and location
We publish comprehensive Pillar 3 disclosures quarterly on our 
website www.hsbc.com. Pillar 3 requirements may be met by 
inclusion in other disclosure media.
Material risks
Pillar 3 requires all material risks to be disclosed to provide a 
comprehensive view of a bank’s risk profile.
Governance
The Board continued to oversee the governance, smooth operation 
and oversight of HSBC Bank plc and its principal and material 
subsidiaries. 
HSBC Bank plc Pillar 3 Disclosures at 30 September 2023 are 
approved by HSBC Bank plc Chief Financial Officer. 
Regulatory reporting processes and controls
The quality of regulatory reporting remains a key priority for 
management and regulators. We are progressing with a 
comprehensive programme to strengthen our processes, improve 
consistency, and enhance controls across our regulatory reports, 
focusing on our prudential regulatory reporting and other priority 
regulatory reports globally.
Our ongoing programme of work on our prudential regulatory reports 
is being phased over a number of years, prioritising RWA, capital and 
liquidity reporting. This programme includes both data enhancement 
and the transformation of the reporting systems that they flow into. 
While this programme continues, there may be further impacts on 
some of our regulatory ratios, such as common equity tier 1 (‘CET1’), 
liquidity coverage ratio (‘LCR’) and net stable funding ratio (‘NSFR’), as 
we implement recommended changes and continue to enhance our 
controls. We are also establishing enhanced risk stewardship and 
assurance over our regulatory reports and have developed a strategic 
inventory and tooling to drive consistent standards and accountability.
 
HSBC Bank plc Pillar 3 Disclosures at 30 September 2023
2


Key metrics
KM1 table below sets out the key regulatory metrics covering HSBC Bank plc available capital (including buffer requirements and ratios), RWAs, 
leverage, liquidity coverage and net stable funding ratios.
Table 1: Key metrics (KM1/IFRS9-FL)
At
30 Sep
30 Jun
31 Mar
31 Dec
30 Sep
Ref*
2023
2023
2023
2022
2022
Available capital (£m)1,2
1
Common equity tier 1 (‘CET1’) capital^
 
20,390  
19,747  
19,984  
18,411  
17,521 
CET1 capital as if IFRS 9 transitional arrangements had not been applied
 
20,390  
19,747  
19,984  
18,392  
17,501 
2
Tier 1 capital^
 
24,281  
23,642  
23,876  
22,304  
21,409 
Tier 1 capital as if IFRS 9 transitional arrangements had not been applied
 
24,281  
23,642  
23,876  
22,284  
21,389 
3
Total capital^
 
37,112  
35,671  
37,173  
35,414  
34,249 
Total capital as if IFRS 9 transitional arrangements had not been applied
 
37,112  
35,671  
37,173  
35,394  
34,229 
Risk-weighted assets (‘RWAs’) (£m)2
4
Total RWAs^
 
107,790  
105,463  
110,910  
112,237  
123,121 
Total RWAs as if IFRS 9 transitional arrangements had not been applied
 
107,790  
105,463  
110,910  
112,220  
123,104 
Capital ratios (%)1,2
5
CET1^
 18.9 
 18.7 
 18.0 
 16.4 
 14.2 
CET1 as if IFRS 9 transitional arrangements had not been applied
 18.9 
 18.7 
 18.0 
 16.4 
 14.2 
6
Tier 1^
 22.5 
 22.4 
 21.5 
 19.9 
 17.4 
Tier 1 as if IFRS 9 transitional arrangements had not been applied
 22.5 
 22.4 
 21.5 
 19.9 
 17.4 
7
Total capital^
 34.4 
 33.8 
 33.5 
 31.6 
 27.8 
Total capital as if IFRS 9 transitional arrangements had not been applied
 34.4 
 33.8 
 33.5 
 31.5 
 27.8 
Additional own funds requirements based on supervisory review and evaluation 
process (‘SREP’) as a percentage of RWAs (%)
UK-7d
Total SREP own funds requirements
 8.0 
 8.0 
 8.0 
 8.0 
 8.0 
Combined buffer requirement as a percentage of RWAs (%)
8
Capital conservation buffer requirement
 2.5 
 2.5 
 2.5 
 2.5 
 2.5 
9
Institution specific countercyclical capital buffer (CCyB)
 0.9 
 0.6 
 0.4 
 0.3 
 0.0 
11
Combined buffer requirement
 3.4 
 3.1 
 2.9 
 2.8 
 2.5 
UK-11a
Overall capital requirements
 11.4 
 11.1 
 10.9 
 10.8 
 10.5 
12
CET1 available after meeting the total SREP own funds requirements2
 14.4 
 14.2 
 13.5 
 11.9 
 9.7 
Leverage ratio^,2,3
13
Total exposure measure excluding claims on central banks (£m)
 
447,967  
431,714  
431,255  
416,814  
461,716 
14
Leverage ratio excluding claims on central banks (%)
 5.4 
 5.5 
 5.5 
 5.4 
 4.6 
Additional own funds requirements to address risks of excessive leverage (as a 
percentage of leverage ratio total exposure amount)^,3,4
Average exposure measure excluding claims on central banks (£m)
430,507  
448,477  
429,024 
N/A
N/A
14a
Fully loaded ECL accounting model leverage ratio excluding claims on central banks (%)
 5.4 
5.5
5.5
N/A
N/A
14b
Leverage ratio including claims on central banks (%)
 4.2 
4.3
4.2
N/A
N/A
14c
Average leverage ratio excluding claims on central banks (%)
 5.6 
5.3
5.3
N/A
N/A
14d
Average leverage ratio including claims on central banks (%)
 4.3 
4.2
4.0
N/A
N/A
14e
Countercyclical leverage ratio buffer (%)
 0.3 
0.2
0.1
N/A
N/A
EU 14d
Leverage ratio buffer requirement (%)
 0.3 
0.2
0.1
N/A
N/A
EU 14e
Overall leverage ratio requirements (%)
 3.6 
3.5
3.4
N/A
N/A
Liquidity coverage ratio (‘LCR’)5,6
15
Total high-quality liquid assets (£m)
106,095
108,593  
108,336  
104,491  
102,609 
UK-16a
Cash outflows – total weighted value (£m)
123,613
126,649  
126,430  
122,833  
118,095 
UK-16b
Cash inflows – total weighted value (£m)
52,027
53,934  
53,249  
49,831  
46,419 
16
Total net cash outflow (£m)
71,586
72,715  
73,181  
73,002  
71,675 
17
LCR ratio (%)
 148 
 149 
 148 
 143 
 143 
Net Stable Funding Ratio (‘NSFR’)6,7
18
Total available stable funding (£m)
114,368
112,860  
111,775  
107,679  
107,425 
19
Total required stable funding (£m)
98,662  
96,646  
94,279  
93,310  
92,065 
20
NSFR ratio (%)
 116 
 117 
 119 
 115 
 117 
* The references in this and subsequent tables identify lines prescribed in the relevant PRA template where applicable and where there is a value. 
^ Figures have been prepared on an IFRS 9 transitional basis. At 30 September 2023, the add-back to CET1 capital and the related tax have been not 
applied as they were immaterial.
1 Capital figures and ratios are reported using CRR II transitional basis for capital instruments.
2 From 1 January 2023, we adopted IFRS17 ‘Insurance Contracts’, which replaced IFRS4 ‘Insurance Contracts’. Comparatives data have been 
represented accordingly.
3 The leverage ratio is calculated using the CRR II end point basis for capital.
4 From 1 January 2023 HSBC Bank plc became an LREQ firm subject to Average leverage ratio requirement.
5 LCR disclosure is calculated based on 12 month-end averages.
6 These LCR and NSFR amounts relate to HSBC Bank plc as a single entity and are not produced on a consolidated basis.
7 NSFR is calculated in line with PRA guidance, which came into effect on 1 January 2022. NSFR disclosure is calculated based on the average of 
preceding quarters.
Pillar 3 Disclosures at 30 September 2023
3
HSBC Bank plc Pillar 3 Disclosures at 30 September 2023


At 30 September 2023, our CET1 capital ratio increased to 18.9% 
from 18.7% at 30 June 2023, as a result of a £0.6bn increase in CET1. 
RWAs also rose by £2.3bn. The key drivers of this 0.2 percentage 
point rise in our CET1 ratio were: 
–
a 0.7 percentage point increase from capital generation through 
profits;
–
a 0.4 percentage point decrease as a result of increase in RWAs 
due to movements in lending portfolio and foreign currency 
translation, partially offset by management initiatives.
At 30 September 2023, our institution specific CCyB ratio increased to 
0.9% from 0.6% at 30 June 2023, reflecting change in CCyB rate for 
Great Britain from 1% to 2% leading to institutional capital buffer 
increasing from £12m to £31m.
The average leverage ratio went up to 5.6% at 30 September 2023, 
from 5.3% at 30 June 2023, primarily due to increase of 0.2 
percentage point driven by a decline in the average leverage 
exposure, which was primarily due to a fall in the average balance 
sheet. Further increase of 0.1 percentage point in average tier 1 
capital.
Throughout 2023, we complied with the PRA's regulatory capital 
adequacy requirements, including those relating to stress testing.
Risk-weighted assets
Table OV1 below shows the total RWAs split and the corresponding total own funds requirement by risk type.
Table 2: Overview of risk-weighted exposure amounts (OV1)
At
30 Sep
30 Jun
30 Sep
2023
2023
2023
RWAs
RWAs
Total own
funds
requirement1
£m
£m
£m
1
Credit risk (excluding counterparty credit risk)2
 
58,800  
58,512  
4,704 
2
–  standardised approach
 
15,522  
16,546  
1,242 
3
–  foundation internal ratings-based (‘FIRB’) approach
 
15,879  
15,260  
1,270 
4
–  slotting approach
 
602  
577  
48 
UK-4a
–  equities under the simple risk weighted approach3
 
2,909  
2,738  
233 
5
–  advanced IRB (‘AIRB’) approach
 
23,888  
23,392  
1,911 
6
Counterparty credit risk (‘CCR’)
 
18,343  
17,681  
1,466 
7
–  standardised approach
 
4,793  
4,540  
383 
8
–  internal model method (‘IMM’)
 
6,530  
6,246  
522 
UK-8a
–  exposures to a central counterparty
 
443  
384  
35 
UK-8b
–  credit valuation adjustment – CVA
 
1,596  
2,022  
128 
9
–  other counterparty credit risk4
 
4,981  
4,489  
398 
15
Settlement risk
 
20  
33  
2 
16
Securitisation exposures in the non-trading book (after the cap)
 
3,284  
3,325  
262 
17
–  internal ratings-based approach (‘SEC-IRBA’)
 
738  
715  
59 
18
–  external ratings-based approach (‘SEC-ERBA’) (including internal assessment approach (‘IAA’))
 
1,616  
1,656  
129 
19
–  standardised approach (‘SEC-SA’)
 
817  
841  
65 
UK-19a
–  1250% deduction
 
113  
113  
9 
20
Position, foreign exchange and commodities risks (Market risk)
 
15,969  
14,591  
1,278 
21
–  standardised approach
 
2,209  
2,182  
177 
22
–  internal models approach (‘IMA’)
 
13,760  
12,409  
1,101 
23
Operational risk
 
11,374  
11,321  
910 
UK-23b
–  standardised approach
 
11,374  
11,321  
910 
29
Total
 
107,790  
105,463  
8,622 
24
–  of which: amounts below the thresholds for deduction (subject to 250% risk-weight)5
 
4,007  
3,860  
321 
1 ‘Total own funds requirement’ in this table represents the minimum capital charge set at 8% of RWAs by Article 92(1) of CRR II.
2 Credit risk includes RWAs on free deliveries amounting to (£ 0.4bn).
3 This line includes off balance sheet collective investment undertakings (‘CIU’) equity exposures, calculated as per CRR II Article 132(c).
4 Other CCR includes RWAs on securities financing transaction.
5 These balances are included in rows 2 and 5 of the table and includes higher thresholds for the recognition of significant investments and deferred tax 
assets.
 
HSBC Bank plc Pillar 3 Disclosures at 30 September 2023
4