Canadian personal and commercial banking (P&C) business of BMO Financial Group has posted net income of C$526m for the third quarter of 2014, an increase of C$40m or 8% from a year ago.

For the quarter ended 31 July 2014, the division’s revenue was up C$96m or 6% year over year primarily due to strong balance and fee volumes.

The bank said that the division’s year-over-year loan growth was 7% and deposit growth was 9%.

The bank’s US P&C business posted net income of US$147 million, a rise of 2% from a year ago. The unit saw year-over-year and quarterly sequential increases in average current loans and acceptances, led by continued strong double-digit growth in the core commercial and industrial (C&I) loan portfolio, the Canadian banking major said.

BMO Financial Group CEO Bill Downe said: "Personal and Commercial Banking in Canada had continuing strong performance with operating leverage above 2% for the fourth consecutive quarter. Net income and pre-provision, pre-tax earnings growth in U.S. Personal and Commercial Banking was encouraging, with improved revenue trends despite the low interest rate environment."

Overall, the banking group reported net income of C$1.13 billion or C$1.67 per share on a reported basis and net income of C$1.16 billion or C$1.73 per share on an adjusted basis.