GENEVA, April 9 (Reuters) - HSBC's (HSBA.L) international private banking operations saw solid net new money inflows and rising profit in 2002 as clients flocked to a big brand name and the bank sold more hedge funds and structured products.

HSBC Republic Bank (Suisse) SA, the biggest foreign bank in Switzerland, said client assets rose 16 percent to 86.8 billion Swiss francs ($62.4 billion) at the end of 2002 compared to 75.1 billion at end-2001. New clients from the Middle East, Africa and Latin America brought in four billion francs in net new money, while the transfer of existing clients from Hong Kong, Singapore and Nassau units and performance gains from the bond, hedge fund and Asian markets also helped lift assets.

"As the environment becomes more difficult, our AA rating becomes more important," said President and CEO Peter Braunwalder. "We've seen clear moves out of specific banks which have more problems."

However Braunwalder doubted whether the bank could grow assets by 10 percent in 2003. Growth was falling short so far. "This is the tough one. We may not make it," he said.

Asset growth hinges on milking synergies within the vast HSBC group. HSBC Republic wants to lure potential private clients with at least a million francs of assets to invest into the bank from elsewhere in the fold. It also plans to promote itself better among Switzerland's wealthy.

Net profit at the Geneva-headquartered bank came in at 218.5 million francs compared to 180.8 million for April to December 2001, following the integration of the Asian and Nassau businesses in the second quarter of 2001.

Income from commissions, products and services rose two percent as the sale of more lucrative structured products leapt by around 70 percent and hedge funds sales rose by 10 percent, CFO Leigh Robertson said.The bank predicted that clients, wary of stock market growth and fed up with poor fixed income returns, would continue to demand such products in 2003.

"The name of the game is still hedge funds... and the growth in structured products has been overwhelming," Robertson said. "Clients are very concerned and (structured products) are really one of the few ways they can earn anything without going into the equity market and taking the risks themselves."

Braunwalder said HSBC Republic would launch four new Swiss-registered hedge fund products by the end of the month, but declined to give details.

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