Canadian Western Bank today reported record quarterly earnings and total revenues.

Third-quarter profit rose 16% as solid economic activity in the western provinces drove loan growth.

The bank said net income was $17.7 million, or 56¢ a share, in the three months ended July 31. That compares with $15.2 million, or 49¢ a share, in the same 2005 period.

Excluding a $1.2 million tax-related charge, earnings would have been 59¢ a share, the bank said.

Canadian Western said quarterly revenue rose 15% to $56.9 million, while return on equity was 14.2%, up from 13.8%.

The bank said both operating segments reported record net income in the third quarter. Banking and trust operations achieved quarterly net income of $15.8 million and a 15% year-over-year increase in total revenues.

Insurance operations contributed quarterly net income of $1.9 million, largely due to a 28% increase in net earned premiums and a consistent claims loss ratio of 64%.

The bank also raised its quarterly dividend to 14¢ a share from 12¢.