Net revenue fell from £114.3m in 2011 to £94.4, and total profit for the division was dowm more than half to £11.8m from £23.8m a year earlier, due in large part to outflows and a £7m loan write down.
The asset management arm saw a less marked decline in profits from £389.4m to £348.5m, while net revenue declined 3% to around £1bn, which included management fees of £28.4m.
Overall profit was also down £47m from 2011, reaching £360m for the year. However, the group reported a 13% increase in AUM, which now stands at £212bn and dividends were up 10% to 43p per share.
In a statement the company said that there had been four quarters of positive net inflows, especially into multi-asset funds. But the private bank faced a number of challenges in 2012 including lower management fees and commission income as a result of subdued client activity and business outflows.
“In the short term we may see further net outflows, but longer-term we remain positive about private banking. We are streamlining the management structure, adding to our talent pool and strengthening our business development activities.”
