HSBC Bank Canada today reported a 19.5% rise in fourth-quarter profit, to $104 million.

The bank said a strong economy, a recent acquisition and fewer bad-loan losses helped to boost earnings.

Net income for the quarter ended June 30 amounted to 2¢ a share and compared with $108 million, or 22¢ per share, a year ago, when there were fewer shares oustanding.

“Our business initiatives and the acquisition of Intesa Bank Canada — together with a strong economy supported by increasing business investment, consumer spending and housing demand — resulted in strong growth in business and consumer loans and residential mortgages,” the bank said in a news release.

Net interest income rose to $243 million from $221 million.

“Results for 2005 continue to be good,” CEO Lindsay Gordon said. “Our business initiatives and the strong economy have contributed to our growth. Our robust risk management process, together with the impact of the good economy and the low interest rate environment, have also resulted in record low provisions for credit losses.”

The provision for credit losses dropped to $6 million from $20 million.