Earnings growth included a $15 million unfavorable impact in the 2013 period from lower interest rates, as well as the absence of $18 million of earnings from former banking operations, it added.

The second-quarter 2013 pre-tax operating margin was 14.1 per cent at the advice and wealth management unit, compared to 11.6 percent a year ago. Results in the year ago quarter included earnings from former banking operations, which contributed 150 basis points to operating margin, according to its latest earnings release.

Meanwhile, operating net revenues grew 13 per cent to $1.1 billion, which was driven by asset growth in fee-based accounts from client inflows and market appreciation, as well as improved client activity across annuity, insurance and financial products.  

Operating expenses increased 10 per cent to $924 million as business growth resulted in higher distribution expenses and higher accruals for retention and performance-based compensation.  

Total retail client assets grew 13 per cent to what the firm said was a record $373 billion. This was driven by client net inflows, client acquisition and market appreciation, it said.