City National Corp. on Wednesday reported third-quarter earnings rose 12 percent on stronger loan growth and raised its profit guidance for this year.

The L.A.-based financial services company reported third-quarter net income of $59.8 million ($1.17 per share), compared with $53.5 million ($1.04) for the like period a year earlier. Revenue rose 13 percent to $209.9 million.

City National said third-quarter average loan balances increased 10 percent from a year ago, and net-interest income jumped 13 percent to $159.3 million. The company had no loan loss provision in either the latest or year-ago quarters.

Non-interest income edged up 12 percent to $54 million, due primarily to trust and investment fees. City National said non-interest income was 26 percent of its third-quarter total revenue, an amount that was unchanged from the third quarter of the year before.

Trust and investment fees increased 18 percent over the third quarter of 2004, fueled by an increase in balances managed. Total assets grew to $14.5 billion from $14 billion in the year-ago quarter.

The company raised its full-year earnings outlook to the upper end of guidance it provided in January for 11 percent to 14 percent profit growth from 2004.