HSBC Bank Canada recorded net income of $81 million for the quarter ended September 30 September, an increase of 3.8%, compared with $78 million for the third quarter of 2002.

Net income for the nine months ended September 30 was $227 million, an increase of $32 million, or 16.4%, compared withC$195 million for the nine months a year ago.

“The results for the quarter were satisfactory given the subdued economic conditions we experienced during the quarter,” said Lindsay Gordon, president and CEO, Designate, said.

“The continued improvement in equity markets encouraged retail clients to trade more frequently and increased retail sharedealing revenues,” he added.

Capital market fees were higher for the quarter and nine months ended September 30 September compared with the same periods in 2002. Retail trading commissions in Merrill Lynch HSBC were $6 million for the quarter.

Retail trading commissions increased as equity markets improved in the second and third quarters of 2003. The recent improvement in the equity markets has not yet boosted retail investor activity in mutual funds. As a result, mutual fund and administration fees were lower for the quarter.

The provision for credit losses for the quarter ended was $14 million compared with $34 million for the same period in 2002. The reduction is attributable to the improving credit environment in Canada.

Funds under management were $13.5 billion at September 30 compared with $12.4 billion at June 30, 2003 and $11.2 billion at Sept. 30, 2002. The increase in the third quarter of 2003 benefited from improvement in equity markets during the period.

The tier 1 capital ratio was 8.3% and the total capital ratio was 11.0% at the end of the third quarter.