One-off factors caused a third-quarter loss at the private bank of HSBC, the global banking firm has reported.

The global private banking arm of HSBC reported a pre-tax loss of $16 million for the third quarter 2013, compared to a pre-tax profit of $252 million for the same period last year.

During a call with analysts, HSBC's chief executive Stuart Gulliver said that this was a result of the write-off of goodwill relating to the private banking business in Monaco, which it had considered selling earlier this year, litigation provision and the repositioning of the business.

"The three of them together explain the material changes year-on-year, of which provision and goodwill have by far and away had the biggest impact," said Gulliver.

Net interest income decreased as higher yielding positions matured and opportunities for reinvestment were limited by prevailing rates, lending and deposit spreads narrowed and average deposit balances fell, the bank said.

The bank's cost/efficiency ratio was 99.8 per cent in the third quarter of 2013, compared to 66.3 per cent at the end of the second quarter in June.

Group profit

HSBC banking group as a whole reported a pre-tax profit rise of 30 per cent in the third quarter of 2013 at $4.5 billion, compared with $3.5 billion in the same period in 2012. 

Earnings per share and dividends per share for the nine months to 30 September 2013 were $0.71 and $0.30, respectively, compared with $0.58 and $0.27 for the equivalent period in 2012.

The core tier 1 capital ratio strengthened to 13.3 per cent from 12.7 per cent at 30 June 2013.

On a geographic breakdown of the results, Europe posted a pre-tax profit of $2.7 billion, while Hong Kong accounted for $6.2 billion, other Asia-Pacific at $6.5 billion; Middle East and North Africa at $1.2 billion; North America at $1 billion, and Latin America at $686 million.

"Our home markets of the UK and Hong Kong contributed more than half of the group’s underlying profit before tax. Hong Kong performed well in the quarter, reflecting broad-based revenue growth. Hong Kong continues to benefit from its close economic relationship with mainland China. We remain well positioned to capitalise on improving economic conditions in these markets," said Gulliver.