Capital markets operations have been a source of strength for North American banks in recent quarters, as persistent volatility drives elevated trading activity, while stronger dealmaking boosts fees they earn from advising on and underwriting transactions.
TD Bank's earnings mirror those of rivals across Bay Street including Bank of Montreal, Bank of Nova Scotia, and National Bank of Canada, whose results were also buoyed by stronger trading and investment banking.
Net income from TD's wholesale banking unit, which houses its global markets and corporate and investment banking businesses, vaulted 87% to a record C$743 million, driven by higher lending and trading-related revenue as well as underwriting fees.
Top Canadian banking executives have brushed aside the impact of U.S. President Donald Trump's new additional tariffs, saying the effects are potentially manageable and that clients can adapt to the evolving environment.
Earnings from TD's U.S. banking arm jumped 41% to C$1.07 billion in the quarter.
The Canadian lender's shares have jumped 28% so far this year, outperforming the broader Toronto index.
Canada's TD Bank reported higher third-quarter profit on Thursday, benefiting from strength in its capital markets business.
For the three months ended July 31, the lender posted a profit of C$4.62 billion ($3.33 billion), or , compared with , or , a year earlier.
