HSBC Bank Canada is reporting a 26% jump in profit for the first quarter ended March 31, as a special gain from a change in accounting rules and solid commercial and consumer businesses helped the bottom line.

The bank says it earned $92 million for the quarter, up from $73 million in the same 2003 period. Earnings per share rose to 19¢ from 15¢.

Net interest and other revenues rose to $329 million from $321 million.

HSBC Canada, Canada’s seventh biggest bank says its quarterly profits benefited from a one-time change following the adoption of new accounting requirements for mortgage loan prepayment fees. That measure raised income before taxes by $14 million.

Return on average common equity was 21.3% for the quarter, up from 19% last year.

The bank’s cost to income ratio rose to 56% from 54.9%, while net interest income fell to $216 million from $218 million.

Total assets rose to $38.6 billion from $35.4 billion, while funds under management increased to $15.8 billion from $11.5 billion.

Non-interest expenses rose to $192 million from $175 million, while gross impaired loans fell 16.9% to $202 million from $243 million.

“Results for the quarter were good,” said Lindsay Gordon, president and CEO, in news release. “We are pleased with the solid growth in consumer and commercial loans. However, low interest rates and the competitive environment in residential mortgages and personal deposits have impacted our net interest margins.