HSBC Bank Canada recorded net income attributable to common shares of $138 million for the quarter ended Sept. 30, 2006, an increase of $25 million, or 22.1%, from $113 million for the same period in 2005.

The bank said this increase was due to a broad-based growth in total revenue. In particular, a growth in loan volumes drove net interest income and non-interest revenue upward, with the latter also benefiting from higher securitization and wealth management income.

Commenting on the results, Lindsay Gordon, president and CEO, said: “Results for the third quarter were robust. Investments in areas such as wealth management and payments and cash management have helped to grow non-interest revenue on a year-on-year basis and throughout this year. The cost efficiency ratio improved because we were able to make our business more efficient without impacting our traditionally high customer service values.”

Net interest income for the third quarter of 2006 was $282 million compared with $261 million for the same period in 2005, an increase of $21 million, or 8%.

Growth in loans and deposits across customer groups continued to benefit net interest income. Average loans for the third quarter were $34.1 billion compared with $31.5 billion for the same period in 2005.

Corporate and commercial lending grew as Canadian customers continued to invest heavily in developing their businesses. Consumer spending remained strong, driving personal lending and residential mortgage borrowing continued to grow.

Average deposits in the third quarter were $42.2 billion compared with $38.6 billion for the same period in 2005. Deposits grew in the third quarter due to the success of new products, such as the High Rate Savings Account and enhanced services created by the Payments and Cash Management business..

Credit quality continued to be stable in the third quarter. The provision for credit losses of $5 million for this quarter was in line with the previous quarter as well as the same period in 2005.

Total deposits grew $4.2 billion to $42.8 billion at Sept. 30, 2006 from $38.6 billion at the same time last year.

Funds under management were $22.4 billion at Sept. 30, compared with $19.9 billion at the same time last year. Including custody and administration balances, total assets under administration were $31.3 billion compared with $26.5 billion at 30 September 2005.

Funds under management benefited from increased acquisition of mandates in managing institutional clients as well as the success of the Private Client products.

The tier 1 capital ratio was 8.9% and the total capital ratio was 11.1% at Sept. 30, 2006. These compare with 9% and 11.2%, respectively, at June 30, 2006 and 8.7% and 10.9%, respectively, at Sept. 30, 2005.