HSBC Trinkhaus & Burkhardt, the German private bank which is part of the HSBC Group, recorded a net profit of €88.5 million ($118.2 million) for the first six months, up 9.1 per cent from €81.1 million for same period in 2012.

Net interest income for the first six months was €81.4 million, a fall of 8.7 per cent from the same period last year.

During the first half, net fee income was €219.4 million, up from €190.9 million at the end of June 2012.

Administrative expenses for the first six months were €242.7 million, down from €269.7 million at the end of the first half last year.

The core tier 1 ratio  was 12.2 per cent, down from 12.9 per cent at the end of last year.

Trinkhaus said in a statement that the commercial banking business would be "significantly expanded" in the coming years, with activities focused on the German market.

"Consistent with this strategy, the bank decided to withdraw from its businesses in Luxembourg. In July, the bank’s two wholly-owned Luxembourg subsidiaries sold their private banking activities and private banking-related fund business to members of the Lichtenstein-based VP Bank Group. The provision on sale of the Luxembourg businesses will impact the banks’ income statement in the second half of 2013, and will lead to lower revenue," the firm said.