HSBC’s private banking business posted pre-tax profits of $108m to the end of June 2013 marking a 80% loss in profitability at the division.
The sharp drop in profitability at the division was also accompanied by the sting of lower operating income in the first half of 2013.
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Half year profits to June 2013 at $108m compare to $527m for the same period in 2012 a crash of $419m.
At the same time operating income at the division dropped by $486m or 30% when income dropped to $1.15bn from $1.80bn in the first half of 2012
The fall in income and profitability at the division was off-set by an increase in clients assets managed by the private bank. These rose 3% from $375m to $386m in the first half of 2013.
This figure is down 3% down however on the $398m in assets managed by HSBC at the end of December 2012.
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By GlobalDataHSBC claims the sale of the division’s Japanese office in the first half of 2012 raised revenue artificially over that period.
The interim statement also says that as the Monaco office was "held for sale" over the first half of 2013 its revenue was omitted from the accounts.
The group expects that the decision not to sell the Monaco business and the expected sale of the Luxembourg office put revenues, and profitability, back on track at the division by the end of 2013.
