TD Bank (TSX:TD) has joined the list of Canadian banks raising its dividend in the third quarter, pushing it 7% higher on improved earnings.

The bank says its quarterly dividend will be 77 cents, an increase of five cents.

Meanwhile, the bank reported Thursday that quarterly net income rose to $1.7 billion, or $1.78 per share, from $1.49 billion or $1.58 a share, in the comparable year-earlier period.

After adjustments, the bank’s net income was $1.82 billion or $1.91 per diluted share.

Revenue increased to $5.84 billion from $5.38 billion.

Analysts had estimated that, on average, the bank would earn $1.84 per share, according to Thomson Reuters. Revenues were projected at $5.79 billion.

“This was a great quarter for TD, with growth driven by record retail earnings and a significant improvement in wholesale earnings,” CEO Ed Clark said in remarks accompanying the bank’s financial report.

Canadian personal and commercial banking posted a record quarter, with reported net income of $864 million, while adjusted net income was $889 million, up 12% from the same period last year, the earnings report said.

Results for the quarter were driven primarily by good volume growth in loans and deposits, better credit performance and an elevated contribution from MBNA, the credit card business it acquired from Bank of America in 2011.

Wholesale banking recorded net income of $180 million for the quarter, up 61% compared with the same period last year.

The increase was primarily due to higher trading-related revenue and improved fixed income and credit trading. Results were partially offset by higher non-interest expenses and PCL.

Clark also noted that the dividend increase was the second this year, amounting to a combined 11% increase overall.

“Our ability to increase dividends points to the stability and high quality of our customer-driven earnings and the board’s confidence in our continuing ability to deliver long-term growth even in a tough operating environment.”

TD raised its dividend in the first quarter of 2012 despite a drop in net income.

Clark added that the overall results reflected “the stability of our earnings in tough times,” adding that the bank now is more comfortable that it will be able to deliver adjusted EPS growth at the low end of its seven to 10% range for the year.

“While slow growth in the economy and a sustained low interest rate environment continue to present challenges, we are focused on organic growth opportunities, making productivity a competitive advantage, strategically investing in our businesses and leveraging our legendary service and convenience brand in the marketplace,” he said.

TD Bank is one of North America’s biggest retail banks, with operations across Canada and in several parts of the U.S. northeastern and mid-Atlantic states.