Thank you, Brian and good morning, everyone.
Before I begin, I'd like to note that all my comments are on an adjusted basis for the bank and our business lines.
As I did in the past few quarters, I will refer to quarter-over-quarter performance in many areas, given the economic impact of the pandemic in 2020. I will also report the numbers excluding FX in many areas as this has an important impact to the year-over-year comparables. We've added Slide 37 which discloses the impact of FX to key income lines. I will begin with a review of all bank performance for the quarter on Slide 5. The bank reported another strong quarter of earnings growth. Year-to-date, the bank has exceeded all it's medium-term objectives of ROE, EPS growth and operating leverage while maintaining strong capital levels. Total earnings were $2.6 billion and diluted EPS was $2.01 for the quarter, an increase in EPS of 93% year-over-year and 6% quarter-over-quarter. All operating segments reported strong results against this quarter, reinforcing the strength of our diversified platform. Return on equity improved to 15.1% from 14.9% last quarter and year-to-date, our return on equity is 14.8%. Pretax pre-provision earnings declined a modest 1% year-over-year. Quarter-over-quarter, all four business lines reported pretax pre-provision growth. Revenue increased 1% year-over-year or up 5% excluding the impact of foreign currency translation. Revenue was in line with last quarter as strong performance from operating segments was offset by lower investment gains in the other segment. Non-interest income increased 3% or up 7%, excluding the impact of foreign currency translation driven by higher banking fees and wealth management revenues. Quarter-over-quarter, non-interest income was flat as higher wealth management revenues were partly offset by lower investment gains, trading revenues and income from associated corporations. Net interest income was down 1% or up 3%, excluding the impact of foreign currency translation, driven by strong loan growth. Core banking margin has remained relatively stable for the past four quarters and is up 13 basis points year-over-year. The margin declined a modest three basis points this quarter, driven by business mix changes with continued strong secured retail and business lending growth. The PCL ratio continued to decrease, falling to 24 basis points for the quarter, representing a decline of 112 basis points year-over-year and 9 basis points quarter-over-quarter. This improvement reflects the more favorable credit quality and macroeconomic outlook across the footprint.
We continue to manage expenses prudently, while investing in our businesses to support future growth.
Excluding the benefits from foreign currency translation, expenses increased 3% quarter-over-quarter, reflecting higher personnel and technology costs that support business growth, professional fees and the impact of three additional days in the quarter. Year-to-date expenses are in line with last year, excluding the benefit from foreign currency translation. On an adjusted basis, the productivity ratio was 52.5% this quarter compared to 51.4% a year ago, while operating leverage was a positive 1.6% year-to-date. Quarter-over-quarter loan growth was strong with mortgages growing at 4%, business loans at 2%, while personal and credit cards were flat, adjusting for the impact of foreign currency. On Slide 6 we provide an evolution of our CET1 capital ratio over the quarter. The bank reported a strong common equity Tier 1 ratio of 12.2%, a modest decrease of 10 basis points from Q2 but an increase of 90 basis points from 1 year ago. Internal capital generation of 21 basis points was driven by strong earnings, offset by increased risk-weighted assets from solid secured retail and business lending growth across the businesses.
This quarter, the capital ratio was also impacted by the increase in the SVaR multiplier and the closing of the transaction that increased our stake in our Chilean business by 7% or 22 basis points.
Turning now to the business line results beginning on Slide 7; Canadian banking reported very strong earnings of $1.1 billion, up significantly year-over-year and 16% quarter-over-quarter. The earnings were underpinned by a continued rebound in revenue growth, favorable credit quality trends and operating leverage about 3% for the second consecutive quarter. Pretax pre-provision earnings grew 15% year-over-year and 9% quarter-over-quarter to over $1.5 billion.
Solid volume growth across assets and deposits and higher fee income were partly offset by modest margin compression. Revenue increased 12% year-over-year and 7% quarter-over-quarter from strong growth in non-interest revenue that grew 11% quarter-over-quarter, driven by higher deposit and mutual fund fees and an increase in card fee revenues. Net interest income grew 5% quarter-over-quarter as a strong growth in mortgage and deposit volumes more than offset the modest margin compression. Residential mortgages grew 10% and business lending grew 7% year-over-year, in line with the strategic priorities of the business. The net interest margin declined three basis points since Q2 to 2.23% from strong growth in mortgages and commercial loans, while higher-margin unsecured lending balances were flat. Expenses increased 8% year-over-year and 3% quarter-over-quarter in line with higher revenues in both periods, primarily driven by higher personnel costs associated with the growing sales force and technology cost to support business development. The year-to-date operating leverage remains strong at 2.3%. The PCL ratio decreased to 7 basis points which is 78 basis points lower year-over-year and 9 basis points lower than Q2.
Turning now to Global Wealth Management on Slide 8; earnings of $397 million were up a strong 19% year-over-year and 5% quarter-over-quarter as the strength of strong fee-based asset growth and brokerage revenues continue, though this was partially offset by higher volume-related expenses. Revenue grow was 19% with non-interest expenses growing 17%. Global Wealth Management delivered it's seventh consecutive quarter of positive operating leverage. The year-to-date operating leverage is a positive 3.7%. Canadian Wealth Management continued it's strong growth once again, up 20% year-over-year with broad-based growth across all business lines. This was the tenth consecutive quarter of double-digit earnings growth for this business. International Wealth also grew a strong 25% year-over-year on a constant dollar basis. AUM and AUA both increased 17% to $344 billion and $587 billion, respectively, driven by positive net sales and market appreciation. Of note, year-to-date, we continue to hold the number two position amongst the banks in retail mutual fund sales in Canada.
Moving to Slide 9; Global Banking and Markets. Global Banking and Markets generated strong earnings of $513 million this quarter, down a modest 1% from Q2. This is the third consecutive quarter for GBM with earnings in excess of $500 million. Revenue was in line with last quarter, with strong contributions from capital markets and M&A which had it's best quarter since 2014. Year-over-year earnings and revenue were down 14% and 19%, respectively, from a record $600 million earnings in Q3 2020. Year-to-date expenses were in line with the prior year and declined 2% compared to the prior quarter, resulting in a productivity ratio of 49.5%. GBM's operations in Latin America that is reported as part of International Banking, generated earnings of $182 million this quarter which is up 8% quarter-over-quarter and 18% year-over-year, driven by strong performance in capital market businesses in the region.
Turning to the next slide on International Banking; my comments that follow are on an adjusted and constant dollar basis. International Banking reported net income of $493 million, up significantly over the same quarter last year and improving 17% quarter-over-quarter. The business has achieved it's target earnings a quarter ahead of our previous expectations.
While there has been some volatility in the pace of improvement in the economic and business conditions, sentiment remains positive and the forecasted GDP growth for the region has improved over the last quarter. Pretax pre-provision earnings for the business line increased 1% from the prior quarter with revenues up 2%. Pretax pre-provision earnings in the Pacific Alliance were up 4% year-over-year and a strong 8% from Q2. Notably, Chile and Mexico are about pre-COVID pretax pre-provision earnings. Revenue increased by 2% quarter-over-quarter driven by strong growth in non-interest income, benefiting from higher capital markets revenues, insurance services and a longer quarter. Quarter-over-quarter, loan balances were flat with commercial up 1%, mortgages up 2%, while personal and credit cards were down 3%. And in the Pacific Alliance, loans were up 1% quarter-over-quarter. Net interest income declined, primarily, due to net interest margin declining 23 basis points compared to Q2, two-third of which was due to changes in business mix. Mortgages and commercial volumes grew, while unsecured lending balances decreased. Provisions for credit losses ratio declined quarter-over-quarter by 18 basis points to 100 basis points. Expenses increased 3% year-over-year and 4% compared to Q2 as we incurred higher personnel and technology costs. We would note that year-to-date expenses are down 3% compared to last year.
Now turning to the other segment; we reported a modest loss of $7 million. The year-over-year improvement was primarily driven by strong asset liability management activities, lower COVID-related costs that was offset by lower investment gains. Quarter-over-quarter, the earnings were substantially lower due primarily to lower investment gains and income from associated operations. I'll now turn the call over to Daniel to discuss risk.