HSBC’s wealth and private banking income dipped in 2020 as the bank suffered from credit losses and a fall in interest income.

Income within HSBC’s private bank fell 7 percent to $1.75 billion, due to a 25 percent drop in interest income. Non-interest-related income actually rose by 9 percent.

The private bank sits under the reporting line of the wealth management division, which saw income decline 9 percent to $7.8 billion – partly due to lower revenue in...