Bloomberg -- NationalBank of Canada, the country’s sixth-largest lender, reported quarterly profit that beat analysts’ estimates on gains in earnings from trading and wealth management.

Net income for the period ended July 31 climbed 11 percent to C$419 million ($399 million), or C$2.39 a share, from C$379 million, or C$2.14, a year earlier, the Montreal-based lender said today in a statement. Profit excluding some items was a record C$2.22 a share, the firm said, topping the C$2.06 average estimate of 12 analysts surveyed by Bloomberg.

“Our credit quality and financial strength remain excellent, and our pan-Canadian growth strategy has paid off with strong performance in the wealth-management and financial- markets segments,” Chief Executive Officer Louis Vachon, 51, said in the statement.

Profit from trading climbed 42 percent to C$158 million in the third quarter from a year earlier, while wealth-management income rose 26 percent to C$52 million as fees on deposits and assets under administration increased, according to the statement. Earnings from consumer and commercial lending rose 1.6 percent to C$192 million.

Revenue advanced 5.5 percent to C$1.29 billion from a year earlier, the lender said. Net interest margin, the difference between what abank pays for deposits and charges for loans, narrowed to 2.26 percent from 2.39 percent a year earlier.

‘ABOVE AVERAGE’

National Bank gained 0.2 percent to C$79.25 yesterday in Toronto trading. The shares have climbed 2.6 percent this year, compared with a 5.9 percent increase in the 45-company Standard & Poor’s/TSX Financials Index.

The lender’s valuation doesn’t reflect its “above average retail revenue growth, disciplined approach to capital management,” and prospects for dividend increases, Andre- Philippe Hardy, an analyst with RBC Capital Markets in Toronto, said in a Aug. 7 note to clients. He rates the shares outperform.

National Bank is the third of the country’s six largest lenders to report results this week following Bank of Nova Scotia and Bank of Montreal, which both posted profit that beat analysts’ estimates. Royal Bank of Canada, Toronto-Dominion Bank and Canadian ImperialBank of Commerce are scheduled to release results tomorrow.