HSBC Bank Canada on Monday reported a 25% jump in net income for the six months ended June 30.

The bank said net income for the six-month period was $146, up from $117 million for the comparable period in 2002. Net income for the second quarter ended June 30 was $73 million compared to $41 million for the second quarter of 2002, an increase of 78%.

Excluding a $28 million restructuring charge in the second quarter of 2002, the increase would have been 8.5% and 23.9%, respectively, for the six months and quarter ended 30 June 2003 compared to the same periods in 2002.

In a statement, the bank said the improvement in net income resulted from higher net interest income and lower levels of provisions for credit losses.

“Results were satisfactory given the mixed economic conditions we have experienced. While there was an improvement in the equity markets during the second quarter, the uncertain outlook continues to have an adverse impact on capital markets and mutual fund revenues. However, record low interest rates and high consumer confidence continued to fuel an active housing market in Canada. Growth in residential mortgages and consumer loans benefited net interest income. Credit losses for the six months and quarter ended 30 June 2003 were lower than in the same periods in 2002 as provisions in the prior periods covered an exposure in the telecommunications sector,” said Martin Glynn, president and CEO.

Net interest income for the quarter was $222 million, an increase of $9 million over the comparative period in 2002.

Other income for the quarter was $111 million compared to $103 million for the same period in 2002.

The provision for credit losses for the quarter was $19 million compared to $43 million for the same period in 2002.

Funds under management were $12.4 billion at June 30, compared to $11.5 billion at March 31, 2003 and $11.7 billion at June 30, 2002.

The tier 1 capital ratio was 8% and the total capital ratio was 10.9% at June 30.