HSBC Global Private Banking’s profits in 2013 fell a staggering 81% compared to the previous year, dropping from $1,009 million to a mere $193 million.
This decline was attributed to customers pulling money away from its Swiss cross-border business, as well as regulatory demands and a writedown in the value of HSBC’s Monaco business.
Client assets also fell to £382 billion, compared to $398 billion a year earlier, due to withdrawals from Switzerland and the disposal of operations in Panama and Luxembourg.
Overall, HSBC did see a 9% rise in profit before tax, up to $22,565 million from $20,649 million in 2012.
Group chief executive Stuart Gulliver said: "We continued to address legacy issues and reposition our business model and client base in global private banking, which in part resulted in a reduction in underlying profit before tax of $0.7 billion. We remain well placed to meet expected future capital requirements, and will continue to review the evolution of the regulatory environment."