Operating profits among Canadian investment dealers fell 30% to $858 million in the second quarter, compared with a strong first quarter, but second-half earnings were still up 39% from a year ago, according to figures from the Investment Dealers Association of Canada.

“Underlying trends in the industry remain positive,” the IDA said in a quarterly report released today. Operating revenues fell 9% from the first quarter. “In the retail business, earnings fell in the quarter, reflecting the drop in stock brokerage and mutual fund commissions,” the IDA said in a news release.

“Firm performance was adversely affected as investors pulled back from the markets over worries concerning rising interest rates, higher commodity prices and mixed economic and earnings data.”

The IDA added: “Encouragingly, fee-based revenues remained on a solid growth path, which helped mitigate the earnings decline.”

Retail firm profits dropped 54% from the first quarter to $46 million, but were up 109% from a year ago. Integrated-firm profits decreased 58% from the previous quarter to $375 million, 38% below year-ago levels.

Firms dealing mainly with institutional clients recorded operating profits of $437 million, up 86% from the first quarter and up 109% from a year earlier.