National Bank of Canada today reported that third-quarter profit rose 18% on better results in its financial markets and retail banking units, as well as a gain on the merger of Canada’s derivatives and stock-exchange operators.

The Montreal-based bank said met income rose to $286 million, or $1.73 per share, compared with $243 million, or $1.48 per share, in the same period the year before.

Excluding items that included a gain of $88 million on the combination of Montreal Exchange and TSX Group, and a $37 million loss related to asset-backed commercial paper, the bank said net income rose 4% to $253 million, or $1.52 per share.

Return on equity was 23.7% for the quarter, up from 20.6% in the year-ago period.

Total revenues excluding one-time items fell 3% to $980 million, from $1.01 billion a year earlier.

The bank said net income in its personal and commercial banking business rose 2% to $127 million, while financial markets profit jumped 75% to $163 million.

Wealth management profit fell 8% to $37 million.

“The bank turned in a solid performance this quarter, driven in particular by a strong contribution from the Financial Markets segment and good growth in business volumes at personal and commercial. Moreover, our financial health remains excellent, as evidenced by the good credit quality of the loan portfolio and our high regulatory capital ratios,” said Louis Vachon, president and CEO, in a release.