HSBC Bank Canada today reported a 5.2% rise in net income for the second quarter ended June 30.

Net income attributable to common shares was $142 million for the quarter, up from $135 million for the second quarter of 2007.

Return on average common equity was 18.9% for the quarter, compared with 20.7% for the same period in 2007.

The cost efficiency ratio was 52.7% for the quarter, compared with 51.2% and for the same period in 2007.

Total assets were $67.4 billion at June 30, 2008, compared with $61.2 billion at June 30, 2007.

Total funds under management were $27.1 billion at June 30, 2008, compared with $25.8 billion at June 30, 2007.

Commenting on the results, Lindsay Gordon, president and CEO, stated “HSBC Bank Canada’s results for the second quarter were in line with expectations in a difficult environment for banks in Canada and worldwide. Falling market interest rates adversely impacted our net interest margin and although our ongoing credit position continues to be stable overall, further increases in specific credit provisions also impacted reported earnings.”