HSBC Bank Canada today reported that its second-quarter earnings grew more than 17% compared to the same period last year.

The company reported net income of $135 million for the three months ended June 30 this year, up from $115 million during the second-quarter of 2006.

HSBC also reported a jump in its earnings over the half year. It reported net income of $274 million, up nearly 19% from last year’s $231 million.

Return on average common equity was 20.7% for the quarter ended June 30 and 21.4% for the half-year, compared with 19.9% and 20.3% respectively for the same periods in 2006.

“Our Commercial Banking business continues to achieve strong results spurred by robust asset growth arising from the continuing strength of the Canadian economy, while maintaining a high level of credit quality,” said president and CEO Lindsay Gordon, in a release.

“Our Personal Financial Services business has been adversely affected by slower residential mortgage growth and by competitive pressures on interest margins. Our corporate, investment banking and markets business has benefited from growth in fee income from a number of advisory and underwriting mandates.”