Weak trading conditions in the commercial banking market had a negative impact on HSBC Bank Australia's performance in the six months to June, with the bank yesterday reporting a pre-tax profit for the half almost unchanged from the December half and down 13 per cent on the previous corresponding period.Retail banking and wealth management contributed A$35 million to the result - up from $26 million in the June half last year.Global banking and markets contributed A$68 million - down from $76 million last year.Commercial banking pre-tax profit fell 32 per cent from $47 million in the June half last year to $32 million in the latest half. HSBC Bank Australia's chief executive, Paolo Maia, said last year's June half result for the commercial division was particularly strong, reflecting the recovery from the financial crisis.But, in the past six months, business has been hit by natural disasters and consumer caution. The bank increased its bad debt provision.Many of HSBC's commercial customers, most of whom are involved in regional trade, were also hit hard by the strong appreciation of the Australian dollar.Maia said the good news was that HSBC increased market share in core product areas, such as trade and supply chain services, and payments and cash management. According to East & Partners, HSBC is the leader in Australia for full service international transaction banking, with more than 22 per cent of the market.Maia is cautious about the outlook for the commercial banking business in the second half,In retail, the bank has continued its branch rollout. It will open three new branches this year. Customer numbers for its cross-border transaction and investment account, Premier, grew by 30 per cent during the half.HSBC has grown above system in both mortgages and retail deposits over the past six months. "We have been aggressive in terms of pricing," said Maia.The residential mortgage book increased 20 per cent, to $8.7 billion, and gross loans and advances increased 13 per cent, to $17 billion.