HSBC Bank Australia suffered a fall in earnings during the June half, with its retail banking and markets divisions going into retreat.HSBC Holdings reported that its Australian operation made a pre-tax profit of US$198 million for the six months to June - down 15 per cent on the previous corresponding period and down seven per cent on the December half.Gross loans and advances increased by 11.6 per cent year-on-year to US$21.1 billion.At the end of June HSBC had US$20.8 billion in local customer accounts, compared with $19.8 billion at the end of December and $18.2 billion at the end of June last year.Retail banking and wealth management was down a little on the previous corresponding period, while commercial banking showed a strong improvement and global banking and markets was down.The group's relationship banking model for small and medium sized businesses was introduced into the Australian market during the first half of the year. The bank ended a credit card partnership with retailer Woolworths, which reduced its card portfolio by A$350 million. Australia continues to be one HSBC's priority growth markets.