HSBC's strong financial performance in Australia in 2008 was marred by a big reduction in the contribution from its personal financial services division, down from US$41 million in 2007 to $19 million last year.HSBC Australia chief executive Stuart Davis said the PFS division's performance was affected by costs involved in setting up the Woolworths credit card and by an increase in delinquencies in the bank's store finance business.HSBC won the contract to be the white label partner for the Woolworths Everyday Money credit card, which was launched last year.Davis said the card was launched at the beginning of the economic downturn and take-up has been affected by a cautious approach from consumers and the bank.Davis said: "For us this is a log term proposition."HSBC Australia reported profit before tax of US$176 million for 2008, up 42 per cent from a pre-tax profit of US$124 million in 2007. Growth in earnings came from the commercial banking division, up 84 per cent, and markets, up 143 per cent.Davis said that despite the view that foreign-owned banks were reducing their exposure in the commercial market, HSBC had increased the number of its business banking relationships in 2008.The focus of the bank's commercial division is on companies with an international orientation.Davis said: "There was a lot of volatility last year, a lot of transactions."That volatility was also behind the growth in the markets division. Davis said the bank made a couple of good calls on the direction of currency and interest rate movements that helped clients.He said trends in the current year were much harder to pick.