The large increase includes a gain of C$260 million from the revaluation of the original 18 per cent investment in DundeeWealth, and a “very strong performance” from the existing wealth management business, the bank said.

In February this year Scotiabank acquired the remaining 82 per cent stake in Toronto-headquartered DundeeWealth, in a deal valued at C$2.3 billion. Accordingly, David Goodman, CEO of the latter firm, will oversee the combined DundeeWealth investment management team and Scotiabank asset-management unit, according to the Wall Street Journal. Scotiabank has also reportedly combined the advisory channel wholesale teams from Scotia Asset Management into DundeeWealth's Dynamic funds.

Over the second quarter, the purchased business contributed “modestly” to net income, due to the C$27 million after-tax impact of one-time transaction and integration costs relating to the acquisition, Scotiabank said.

Meanwhile, assets under management rose 109 per cent year-over-year, to C$107 billion at quarter-end, bolstered by the acquisition.

Total revenues at Global Wealth Management climbed 100 per cent from a year earlier, to $1.096 billion, of which approximately 89 per cent was attributable to wealth management and 11 per cent to the insurance businesses. The revenue performance was largely due to a revaluation gain on the firm’s original investment in DundeeWealth, as well as strong contributions from the acquired business, and growth in fees and insurance revenues.

Overall, Scotiabank reported net income of C$1.5 billion for the quarter ended 30 April. This compares to net income before non-controlling interests of C$1.1 billion in the same period last year, an increase of 37 per cent. Excluding gains from the adoption of new accounting standards however, net income was up 12 per cent.