HSBC Bank Canada is reporting stronger results for the first quarter ended March 31.

The company saw net income rise 17% to $55 million. Income before taxes and non-controlling interest in income of subsidiaries was up 33% to $100 million for the quarter.

Return on average common equity slipped to 16.3% for the quarter, from 18.9% in the comparative quarter in 2000. The bank says that ROE slipped as a result of increasing the capital base to support strong loan growth during 2000.

Martin Glynn, president and CEO, said, “Our results were in line with expectations. The bank continues to benefit from solid business growth across all customer lines. Income continues to be strong despite weak equity markets during the first quarter of 2001.”

Net interest income for the first quarter of 2001 was $175 million, up 15.1% over the first quarter of 2000. This increase is attributable to strong growth in the loan portfolio during 2000, and the acquisition of Republic National Bank of New York, which added approximately $1 billion in loans.

Other income was $102 million, down from $125 million in the first quarter of 2000. The bank blames the falloff on weak equity markets. “As a result of the market decline, investment and securities services income and trading revenues were lower in the first quarter”. Funds under management also slipped to $9.6 billion at March 31, compared to $11.2 billion in 2000.