first direct Credit Rating
first direct is not a bank in its own right: it is a trading name of HSBC UK Bank plc (FCA firm reference 765112), part of HSBC. Credit rating agencies rate the licence holder, not the brand, so first direct has no rating of its own. HSBC UK Bank plc currently holds a blended long-term credit rating of AA-, which is investment grade; that is the rating shown on this page. first direct was launched by Midland Bank in 1989 and has been a division of HSBC UK Bank plc, HSBC's ring-fenced UK retail bank, since ring-fencing took effect in 2018. A credit rating is an opinion on an institution's ability to meet its obligations, not a guarantee, and it is separate from deposit protection.
HSBC UK Bank credit ratings by agency
| Agency | Long-term rating | Outlook | Last confirmed |
|---|---|---|---|
| Fitch Ratings | AA | Stable | 10 Jul 2026 |
| Moody's | A1 | Stable | 19 Jul 2026 |
| S&P Global Ratings | A+ | Positive | 10 Jul 2026 |
Rating History Chart
Rating History
| Date | Rating | Agencies |
|---|---|---|
10 Jul 2026 |
S&P, Moody's, Fitch | |
10 Jul 2026 |
S&P, Moody's, Fitch | |
27 Jan 2026 |
S&P, Moody's, Fitch | |
15 Jan 2016 |
Fitch | |
15 Jan 2016 |
Moody's, Fitch | |
15 Jan 2016 |
S&P, Moody's, Fitch |
Service record: complaints, incidents and customer survey
Complaints: in the FCA's 2025 H2 file (July 2025 to December 2025), HSBC UK Bank received 75,064 banking and credit-card complaints, 2.57 per 1,000 accounts. The bank upheld 58% of those it closed and closed 64% within three days. The previous period was 2.95 per 1,000, so complaints fell. Compare all banks.
Outages and incidents: first direct reported
0 major operational or security incidents to the FCA in the quarter to 30 June 2026 and 1 in the 12 months to 30 June 2026 (mobile app 1, online banking 1, telephone 1)
Customer survey (CMA / Ipsos, August 2026): share of first direct's own customers who would recommend it.
| Measure | Market | Would recommend | Rank |
|---|---|---|---|
| Online and mobile banking | Great Britain | 78% | 3 of 17 |
| Overall service quality | Great Britain | 75% | 3= of 17 |
| Overdraft services | Great Britain | 70% | 5 of 16 |
Market signals, ownership and group accounts
Short positions: no disclosed net short position in the listed group's shares on the FCA's list (checked 17 October 2026).
Only positions of 0.5% or more per holder are disclosed, so this is a floor. Above 2% to 3% is unusual for a UK bank; it is a view on the listed group's shares, not on deposit safety, which the FSCS covers regardless.| Fiscal year | Profit before tax | Net income | Total assets | Equity | Dividends paid |
|---|---|---|---|---|---|
| Dec 2025 | $29.9bn | $23.1bn | $3233.0bn | $205.7bn | $13.5bn |
| Dec 2024 | $32.3bn | $25.0bn | $3017.0bn | $192.3bn | $17.1bn |
Latest News
Is first direct safe? What the record shows
first direct is a trading name of HSBC UK Bank plc, so the record that matters is that bank's. Each statement below is taken from the source named beneath it, last checked 15 October 2026. It is information, not advice.
Banking licence
HSBC UK Bank plc (company number 9928412, registered in Birmingham) is HSBC's ring-fenced UK retail bank, authorised by the Prudential Regulation Authority and regulated by the FCA and the PRA under Financial Services Register number 765112. It is a separate authorised entity from HSBC Bank plc (FRN 114216), the group's non-ring-fenced bank.
Source: HSBC UK legal information, 15 Oct 2026first direct is a division of HSBC UK Bank plc trading under the same authorisation (765112), not a separately licensed bank. The business of Marks and Spencer Financial Services was transferred into HSBC UK Bank plc as a separately branded division on 1 June 2026, so the bank now operates three brands: HSBC UK, M&S Bank and first direct.
Source: HSBC UK Bank plc Interim Report 2026, presentation of information, 1 Jun 2026Ownership and funding
HSBC UK Bank plc is a wholly owned subsidiary of HSBC Holdings plc, whose primary share listing is on the London Stock Exchange with shares also traded in Hong Kong, Bermuda and New York. Notifiable holdings in HSBC Holdings at 30 June 2026 were BlackRock 9.09%, Ping An Asset Management 7.98%, Bank of New York Mellon 6.01% (as ADS depositary) and JPMorgan Chase 5.07%.
Source: HSBC Holdings plc Interim Report 2026, notifiable interests in share capital, 30 Jun 2026Size
At 30 June 2026 HSBC UK Bank plc had total assets of £369.3 billion, customer accounts of £291.4 billion and loans and advances to customers of £239.9 billion. It serves over 15.3 million customers across the HSBC UK, first direct and M&S Bank brands with about 17,700 full-time-equivalent staff.
Source: HSBC UK Bank plc Interim Report 2026, highlights and balance sheet, 30 Jun 2026Profitability
HSBC UK Bank plc made a profit before tax of £5,619 million in 2025, £28 million below the £5,647 million of 2024. In the first half of 2026 profit before tax was £2,899 million, up 4% on the £2,786 million of the first half of 2025, with net interest margin rising from 2.61% to 2.66%.
Source: HSBC UK Bank plc Annual Report and Accounts 2025 and Interim Report 2026, 30 Jun 2026Capital strength
HSBC UK Bank plc's Common Equity Tier 1 ratio was 13.2% at 30 June 2026, unchanged from 31 December 2025 (31 December 2024: 13.6%), on CET1 capital of £16.4 billion and risk-weighted assets of £124.3 billion. Its leverage ratio was 5.6%; the Pillar 2A requirement was 3.8% of risk-weighted assets.
Source: HSBC UK Bank plc Pillar 3 disclosures at 30 June 2026, 30 Jun 2026Regulatory record since 2020
On 29 January 2024 the PRA fined HSBC Bank plc and HSBC UK Bank plc £57,417,500 (reduced from £82,025,000 for settlement) for depositor-protection failings: HSBC Bank plc had wrongly marked 99% of eligible deposits by value as ineligible for FSCS protection. The failings ran from 2015 to 2022 at HSBC Bank plc and from 2018 to 2021 at HSBC UK Bank plc.
Source: PRA final notice to HSBC Bank plc and HSBC UK Bank plc, 29 Jan 2024On 23 May 2024 the FCA fined HSBC UK Bank plc, HSBC Bank plc and Marks and Spencer Financial Services plc £6,280,100 for failures in treating customers in arrears or financial difficulty between June 2017 and October 2018; HSBC had already paid £185 million in redress to more than 1.5 million customers.
Source: FCA press release, 23 May 2024, 23 May 2024On 17 December 2021 the FCA fined HSBC Bank plc (the non-ring-fenced bank, not HSBC UK Bank plc) £63,946,800 for deficient automated transaction-monitoring controls between 2010 and 2018. No fine against any HSBC entity appears on the FCA's 2025 or 2026 fines lists (checked to 30 September 2026).
Source: FCA press release, 17 December 2021; FCA 2026 fines list, 15 Oct 2026Credit ratings
HSBC's investor relations page (22 September 2026) lists HSBC UK Bank plc at Fitch AA (stable), Moody's A1 (positive) and S&P A+ (positive), two to three notches above the parent HSBC Holdings plc (Fitch A+, Moody's A3, S&P A-). The bank's registration document of 24 June 2026 confirms the same three long-term ratings.
Source: HSBC credit ratings, 22 Sep 2026Press reports of the agency releases say S&P moved HSBC UK Bank plc's outlook to positive on 26 May 2026 and Moody's moved it to positive on 18 September 2026, citing the group's strategy execution. The agency releases themselves are paywalled and were not read.
Source: Investing.com report of Moody's action, 18 September 2026, 18 Sep 2026Deposit protection
Eligible deposits with HSBC UK Bank plc are protected by the FSCS up to £120,000 per depositor, the limit that applies to failures on or after 1 December 2025. FSCS lists first direct as a name HSBC uses under the same licence, so HSBC UK and first direct balances count together against one limit; since 1 June 2026 M&S Bank deposits sit in the same authorised bank too.
Source: FSCS banking licences, 15 Oct 2026Operational incidents
On Black Friday, 24 November 2023, HSBC UK mobile and online banking failed from about 07:00, which HSBC attributed to an internal system issue; service was restored after 23:00. On 27 August 2025 mobile and online banking were again unavailable to many customers from about 10:00 until mid-afternoon. No major HSBC UK outage in 2026 was found in press coverage to 15 October 2026.
Source: The Register, 24 November 2023; Yahoo Finance UK, 27 August 2025, 27 Aug 2025Frequently asked questions about first direct
Is first direct safe?
first direct operates under HSBC UK Bank plc's banking licence, and HSBC UK Bank plc holds a blended long-term credit rating of AA-, which is investment grade. A rating is an independent opinion on the institution's ability to meet its obligations; it is not a guarantee and can change. Separately, eligible deposits with UK-authorised banks and building societies are protected by the FSCS up to £120,000 per person per banking licence. This page is information about published credit ratings, not financial advice.
What is first direct's credit rating?
first direct has no rating of its own. Its licence holder, HSBC UK Bank plc, has a blended long-term credit rating of AA- from S&P, Moody's, Fitch; the per-agency figures are shown above.
Which bank is first direct part of?
first direct is a trading name of HSBC UK Bank plc, FCA firm reference 765112, part of HSBC. first direct was launched by Midland Bank in 1989 and has been a division of HSBC UK Bank plc, HSBC's ring-fenced UK retail bank, since ring-fencing took effect in 2018.
Does first direct share an FSCS limit with HSBC UK or M&S Bank?
Yes. first direct and HSBC UK and M&S Bank all sit under HSBC UK Bank plc's licence, so money held across them counts towards one £120,000 limit per person, not one limit each.
Is HSBC UK a real bank?
HSBC UK Bank plc (company number 9928412, registered in Birmingham) is HSBC's ring-fenced UK retail bank, authorised by the Prudential Regulation Authority and regulated by the FCA and the PRA under Financial Services Register number 765112. It is a separate authorised entity from HSBC Bank plc (FRN 114216), the group's non-ring-fenced bank.
Is HSBC UK profitable?
HSBC UK Bank plc made a profit before tax of £5,619 million in 2025, £28 million below the £5,647 million of 2024. In the first half of 2026 profit before tax was £2,899 million, up 4% on the £2,786 million of the first half of 2025, with net interest margin rising from 2.61% to 2.66%.
Has HSBC UK been fined by the FCA?
On 29 January 2024 the PRA fined HSBC Bank plc and HSBC UK Bank plc £57,417,500 (reduced from £82,025,000 for settlement) for depositor-protection failings: HSBC Bank plc had wrongly marked 99% of eligible deposits by value as ineligible for FSCS protection. The failings ran from 2015 to 2022 at HSBC Bank plc and from 2018 to 2021 at HSBC UK Bank plc. On 23 May 2024 the FCA fined HSBC UK Bank plc, HSBC Bank plc and Marks and Spencer Financial Services plc £6,280,100 for failures in treating customers in arrears or financial difficulty between June 2017 and October 2018; HSBC had already paid £185 million in redress to more than 1.5 million customers. On 17 December 2021 the FCA fined HSBC Bank plc (the non-ring-fenced bank, not HSBC UK Bank plc) £63,946,800 for deficient automated transaction-monitoring controls between 2010 and 2018. No fine against any HSBC entity appears on the FCA's 2025 or 2026 fines lists (checked to 30 September 2026).
Who owns HSBC UK?
HSBC UK Bank plc is a wholly owned subsidiary of HSBC Holdings plc, whose primary share listing is on the London Stock Exchange with shares also traded in Hong Kong, Bermuda and New York. Notifiable holdings in HSBC Holdings at 30 June 2026 were BlackRock 9.09%, Ping An Asset Management 7.98%, Bank of New York Mellon 6.01% (as ADS depositary) and JPMorgan Chase 5.07%.