HSBC Bank Canada today reported a 5.1% rise in third-quarter earnings to $145 million as assets swelled 13.8% from a year earlier to $63.6 billion.

The Canadian unit of the London-headquartered global HSBC group said today that annualized return on equity was 21.3% in the quarter ended Sept. 30, off from 23% in the year-ago period, when net income was $138 million.

“The strong Canadian economy and strategic investments in key businesses and markets drove growth,” said HSBC Bank Canada president Lindsay Gordon, in a news release.

HSBC Canada’s provision for credit losses increased to $21 million for the third quarter compared with $5 million a year earlier, “due to additional provisions related to a single commercial exposure compared to an unusually low loan loss experience in 2006,” the bank said.

“Overall credit quality remains sound, reflecting prudent lending standards and strong economic conditions in Canada.”

Impaired credit exposures increased by $40 million from a year ago to $206 million.

Third-quarter net interest income increased 13.1% from a year earlier to $319 million, non-interest revenue rose 15% to $184 million, and non-interest expenses were up 15.5% to $246 million.

The tier 1 capital ratio was 8.5% at September 30, off from 8.8% a year earlier.