HSBC Bank Canada today reported a 10.6% jump in net income for the second quarter ended June 30.

Net income for the quarter $115 million up from $104 million for the same period in 2005.

HSBC said the increase was due to strong growth in net interest income and non-interest revenue.

Return on average common equity for the quarter was 19.9% compared with 19.7% a year ago.

Total assets were $53.1 billion at June 30 June. compared with $47.4 billion at June 30, 2005.

Total funds under management were $21.7 billion at quarter end compared with $18.8 billion at June 30, 2005.

The buoyant equity markets had a positive impact on retail investor activity, which was driven by large increases in commodity prices.

Commenting on the results, Lindsay Gordon, president and CEO, said: “Our results for the second quarter continue to show good momentum. Underlying revenue growth for the quarter and half-year continues to be strong.”

Net interest income for the second quarter was $276 million compared with $243 million for the same period in 2005, an increase of $33 million, or 13.6%.

Credit quality was stable in the second quarter. The provision for credit losses of $6 million this quarter was in line with the previous quarter and the same period a year ago.

The bank’s tier 1 capital ratio was 9% and the total capital ratio was 11.2% at June 30. These compare with 9.% and 11.3%, respectively, at March 31, 2006 and 9.% and 11.2%, respectively, at June 30, 2005.