Canadian Western Bank has reported a 23% rise in second-quarter profit a result of growth in tis banking and insurance businesses.

The bank said net income increased to $12.1 million, or 39¢ a share, for the quarter ended April 30, from $9.8 million, or 34¢ a share, in the same period last year.

Total revenues jumped 28% to a record $43.8 million from $34.3 million.

Return on equity slipped to 11.7% from 11.9%.

Canadian Western’s core banking and trust business saw net income climb 11% over the same quarter last year, bolstered by strong growth in commercial and industrial lending, as well as residential mortgages.

The insurance unit added $1.3 million to the bottom line.

The bank said it set aside $2.5 million for bad loans in the quarter, little changed from the provision for credit losses of $2.2 million the year before.

Canadian Western Bank said its year-to-date performance was ahead of its 2005 targets in terms of net income growth, total revenue growth, and loan growth. It is lagging slightly on the return on equity measure.

The bank, which operates in British Columbia, Alberta, Saskatchewan, and Manitoba, also raised its quarterly dividend by 11% to 10¢ a share.