Canaccord Capital Inc. today reported a 13% jump in profit for the second quarter ended Sept. 30, 2006.

Net income was $17.8 million, up 13% from $15.8 million for the second quarter of fiscal 2006,

Diluted earnings per share were 37¢, up 3¢, from 34¢ for the same quarter a year ago.

Revenue for the quarter was $156 million, up $37.4 million, or 31.5%, from $118.7 million for the same quarter a year ago.

Excluding the consolidated U.S. operations, revenue for the quarter would have been $137.3 million, up $18.6 million, or 15.7%, and net income would have been $17.9 million, up $2.1 million, or 13.4%.

“Our long term strategy of diversification by product mix, sector and geography has enabled us to generate a solid result this quarter, despite challenging market conditions,” said Peter Brown, chairman and CEO, in a news release. “We continue to make prudent investments in key growth areas as part of our long-term effort to maximize shareholder value,” added Paul Reynolds, president.

Durign the second quarter, total compensation payout as a percentage of revenue was 54.9%, down from 58.1%.

Return on equity was 22.1%, down from 27.8%.