HSBC has said that its pre-tax profit for the year ended 31 December 2014 fell 17% to $18.7bn from $22.6bn a year ago.

The decline in profit was driven by lower business disposal and reclassification gains and the negative effect of items including fines, settlements, UK customer redress and associated provisions.

Revenue for the year rose slightly to $62bn from $61.9bn in the previous year. The bank’s net interest income was $34.7bn for the year, down from $35.5bn a year ago.

The retail banking and wealth management business of HSBC has posted a pre-tax profit of $5.65bn for the year ended 31 December 2014, down 15% compared to $6.65bn a year ago.

Revenue in retail banking and wealth management was also down driven by the continuing repositioning of the business.

The bank’s global private banking business posted a pre-tax profit of $626m for the year compared to $193m in 2013.

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The global private banking business has attracted $14bn of net new money this year via clients of global banking & markets and commercial banking.

The global asset management business has continued its strategy of strengthening collaboration across global businesses, which helped to attract net new money of $29bn.

The bank has set aside $1.19bn in the year for settlements and provisions related to foreign exchange probes.

Group Chairman Douglas Flint said that retail banking and wealth management business continued to build a sustainable customer focused business model, completing the removal of formulaic links between product sales and performance-related pay of our staff, and expanding its digital and mobile offerings.

Group CEO Stuart Gulliver said: "2014 was a challenging year in which we continued to work hard to improve business performance while managing the impact of a higher operating cost base. Profits disappointed, although a tough fourth quarter masked some of the progress made over the preceding three quarters."