Rockwater Capital Corp. today reported sharply higher profits and increased revenue for the second quarter as the financial services company generated growth in its core businesses.

Rockwater said it earned $1.6 million or 7¢ a share for the three months ended June 30. That compared with a profit of $114,000 or 1¢ a share last year.

Revenues rose to $46.8 million from $32 million in the second quarter of 2004.

Capital markets revenues rose 123% to $6.2 million.

Wealth management revenues rose 14.8% to $3.5 million.

Assets under administration rose $1.2 billion to $6.2 billion, while asset management revenues increased by $5.1 million primarily due to an acquisition.

“Rockwater has spent time strengthening our platforms in asset management, wealth management and capital markets,” said Bill Packham, president and CEO, in a release. “We are pleased with the growth in each of these businesses and look forward to maintaining a profitable momentum going forward. We remain committed to achieving Rockwater’s goal of becoming Canada’s leading independent diversified financial services company.”

Rockwater is an independent diversified financial services company that carries out its operations through three subsidiaries: First Associates Investments Inc.’ Rockwater Asset Management Inc.’ and KBSH Capital Management Inc.