HSBC Bank Canada today reported a 32.5% increase in 2005 profit to $457 million.

The Canadian unit of HSBC Holdings plc said that fourth-quarter net income was $132 million, up 53.5% from a year earlier.

Return on equity was 21.3% for the year, up from 18.3% in 2004, and 23.8% for the quarter, up from 16.6% a year earlier.

Total assets were $49.2 billion at year-end, up 13.6% on the year, and funds under management grew 15.8% to $20.5 billion.

The results “reflected the robust Canadian economy and the strength of our customers,” said Lindsay Gordon, president and CEO, in a release.

The year’s net interest income was boosted 12.7% to $1.01 billion thanks to lending growth. Non-interest revenues gained 8.4% to $570 million on higher investment administration fees, credit fees and foreign exchange revenue.

“Lastly, the stable credit environment in Canada throughout much of 2005 meant lower provisions for credit losses and resulted in a reversal in the fourth quarter from our general allowance for credit losses,” Gordon said.