The gains were broadly distributed. Canadian personal and commercial banking revenue climbed four per cent sequentially, helped by an additional calendar day in the quarter and a modest improvement in net interest margins.
Capital markets revenue rose six per cent, with contributors varying from bank to bank but generally reflecting stronger trading income and increased investment banking mandates.
Wealth management revenues expanded seven per cent, lifted by favourable market conditions and growth in fee-generating client assets.
“Every business segment delivered record pre-provision, pre-tax earnings with sustained momentum in Capital Markets and Wealth,” said BMO Financial Group chief executive Darryl White after the bank reported a 22 per cent year-over-year gain in adjusted net income to $2.9 billion. Its capital markets division posted a record quarter, with pre-provision, pre-tax earnings of $903 million and global markets revenue up 27 per cent.
RBC delivered a record quarterly net income of $6.02 billion, up from $5.41 billion a year earlier, with capital markets earnings climbing 16 per cent to $1.54 billion. The bank’s wealth management segment was the star performer, with net income jumping 32 per cent to $1.44 billion. CIBC’s capital markets division posted a 34 per cent increase in net income to $722 million, while Scotiabank’s Global Banking and Markets segment earned $647 million, up 37 per cent year over year.