Thank you, Brian, and good morning, everyone. I'll start on slide 5. The bank delivered $2.3 billion in earnings and the diluted earnings per share of $1.83 for the quarter up 2% and 5%, respectively compared to last year. Divested operations reduced net income by $109 million on a net basis and diluted earnings per share by approximately $0.09 and as disclosed on slide 18.
Revenue increased 5% from last year with strong growth in both net interest income and noninterest revenues. Net interest income was up 3%, primarily driven by solid growth in assets and deposits in Canadian banking, higher contributions from asset liability management activities and acquisitions. These increases were partly offset by the negative impact of foreign currency translation, the impact of IFRS 16 and divestitures that closed this quarter. The core banking margin was in line with last year. Higher margins from asset liability management activities offset slightly lower margins in the business lines.
Noninterest income grew a strong 8% compared to last year, reflecting higher trading-related revenue, higher underwriting and advisory fees, as well as higher bank and wealth management revenues. These were partly offset by the impact of divestitures and lower investment gains.
Expenses were up 4% year-over-year, higher regulatory and technology costs, other employee costs and business growth initiatives were partly offset by lower professional and business development expenses the impact of foreign currency translation divestitures and IFRS 16.
The all Bank productivity ratio improved 70 basis points to 53.4% and operating leverage was positive 1.3%. The total PCL ratio was 51 basis points, up one basis point quarter-over-quarter and up four basis points year-over-year.
Our PCL ratio on impaired loans was 53 basis points, up four basis points sequentially and up six basis points from last year. The tax rate remained in line with our outlook for 2020.
On slide 6, we provide evolution of our CET1 ratio over the quarter. The bank reported a Common Equity Tier 1 ratio of 11.4%, up approximately 30 basis points primarily due to the divestitures, which closed during the quarter and strong earnings growth. This was partly offset by good growth in risk-weighted assets, regulatory changes and share buybacks. The CET1 ratio was also impacted by the changes in pension liability, primarily driven by declining discount rates.
Internal capital generation was seven basis points as strong earnings growth was offset by good organic RWA growth. Risk-weighted assets were flat quarter-over-quarter but up 3% compared to last year. We repurchased approximately 3.6 million common shares during the quarter at an average price of $74.63 per share. Since May 2018 when we closed our acquisition of Jarislowsky Fraser, the bank has repurchased and canceled approximately 25 million shares.
Turning now to the business line results beginning on slide 7. Canadian Banking reported adjusted net income of $908 million, up 5% year-over-year. Loan growth was strong at 6%. In retail lending, residential mortgages grew 5%, personal loans 3% and credit cards 5%. Meanwhile, business lending grew 12% and with strong double-digit growth in commercial lending. Deposits grew 5%.
The net interest margin was down five basis points quarter-over-quarter and down three basis points year-over-year, primarily driven by competitive pressures in lending and the impact of IFRS 16. Non-interest income was up 7% driven by higher credit card and banking revenue.
Expenses increased 4% driven by personnel and technology costs to support revenue growth. Canadian Banking delivered positive operating leverage of approximately 90 basis points through prudent expense management that was guided by good revenue growth. The productivity ratio improved 30 basis points to 45.4%. The PCL ratio was flat compared to last year, as higher impaired provisions were offset by lower-performing loan PCLs, primarily due to improved retail portfolio credit quality.
Turning to the next slide on International Banking. My comments that follow are based on results on an adjusted and constant-dollar basis. Earnings of $615 million were down 17% year-over-year, or 7% on pre-tax pre-provision basis. Recall that International Banking had strong growth in the last 16 quarters.
Excluding the impact of divestitures, earnings were down 4% year-over-year. Last year benefited from tax benefits in Mexico that have now returned to more normal tax rates. Normalizing for these tax benefits, International Banking's NIAT grew 4% driven by strong growth in Peru. The benefit of the alignment of reporting period of Mexico in the quarter was offset by the benefit from the alignment of reporting period of Peru in the same quarter last year. Revenue declined 2%, excluding divestitures revenue grew 4% year-over-year. The Pacific Alliance countries grew revenues by 5% year-over-year.
Net interest margin declined three basis points year-over-year to 4.51%, driven by margin compression due to Central Bank rate changes in Mexico, loan spread compression in Chile and the impact of IFRS 16. NIM was stable relative to last quarter, as margin compression was offset by the benefit from divestitures that closed this quarter. The NIM remained well within our guidance range of 4.5% plus or minus 10 basis points.
Excluding the impact of divestitures non-interest income was up 2%, driven by higher capital markets revenue in Chile partly offset by the gain on sale of a foreclosed asset in the prior year. Expenses were up 3% year-over-year.
Excluding divestitures, expenses were up 5% year-over-year, primarily driven by the acquisitions in Peru and the Dominican Republic that closed in the second half of last year.
Operating leverage was negative 3.8%, or negative 0.8% excluding the impact of divestitures. This was a transitional quarter for International Banking, as we reduced our interest in TMB Bank, closed the sale of operations in three countries and completed the integration of acquisitions into others.
Turning now to our Global Wealth Management segment on slide 9. Earnings of $318 million were up a strong 11% year-over-year. Revenues were up 5% year-over-year, or 7% excluding the impact of divestitures, reflecting strong AUA and AUM growth and brokerage revenues.
Assets under management increased 6% year-over-year and assets under administration increased 7% year-over-year, reflecting market appreciation and positive net sales in mutual funds.
Excluding the impact of divestitures, assets under management and assets under administration year over growth was 13% and 11% respectively.
We are continuing to see strong asset growth and earnings momentum across our advisory and asset management businesses including, Jarislowsky, Fraser and MD Financial.
Beyond the impact of improved equity markets, AUM growth benefited from net retail investment fund sales of $1.7 billion in the quarter and sustained superior investment results.
Over the last 5 years 80% of AUM are in the top two quartiles for performance. Expenses grew 2%, primarily reflecting higher business volume. The productivity ratio continues to be industry-leading and improved a further 180 basis points to 62.4%.
Moving to slide 10, Global Banking and Markets, net income of $451 million was up a strong 35% year-over-year and up 11% quarter-over-quarter due to record revenue driven by strong performance in our trading businesses, primarily in fixed income as well as higher underwriting fees.
Despite a continued volatile environment, M&A and advisory pipelines remain strong. Corporate loans grew 6% year-over-year, reflecting continued growth in Canada with greater than 80% of this growth in investment-grade loans.
On the other side of the balance sheet, customer deposits were up a very strong 21%. Net interest income was down 13% year-over-year, due to deposit margin compression and lower loan origination fees partly offset by loan growth.
Non-interest income was up a strong 34% year-over-year, driven by strong performance in fixed income trading and underwriting activity. Expenses were up a modest 1% year-over-year, due to higher performance-based compensation reflecting the strong revenue growth this year.
Recall that this is a seasonally higher expense quarter for the business. The business expense growth will be guided by revenue growth and focused on generating positive operating leverage for the year. Strong revenue growth combined with prudent expense management contributed to the productivity ratio improving by 850 basis points year-over-year.
I'll now turn to the Other segment on slide 11 which incorporates the results of group treasury, smaller operating units and certain corporate adjustments. The results also include the gains and losses on divestitures and asset liability management activities. My comments that follow are on an adjusted basis.
The Other segment reported a smaller loss compared to last year, due mainly to higher contributions from asset liability management activities. Quarter-over-quarter, the Other segment reported a lower loss due mainly to higher contributions from asset liability management activities that were partly offset by lower securities gains and higher non-interest expenses. The results in the Other segment are in line with previous guidance.
I'll now turn it over to Daniel who will discuss risk management.