(RTTNews) - Canadian stocks rose sharply for a second day at the opening bell Thursday morning, with another round of somewhat encouraging earnings results from Canada’s big banks helping fuel buying interest among financials.

The S&P/TSX Composite Index is up 120 points at 13,651.26, extending Wednesday’s triple-digit advance and pulling further away from last week’s 5-month closing low.

Financials are up 1.5 percent, with traders taking in quarterly results from TD Bank, Royal Bank, and National Bank.

TD Bank (TD.TO) reported a more than 9% decline in its profit for the third quarter. For the third quarter, the company’s net income declined to C$997 million, or C$1.21 per share, from C$1.10 billion, or C$1.51 per share, a year ago.

Adjusted earnings per share for the latest quarter declined 15.6 percent and came in below analysts’ consensus estimate. However, the company raised its quarterly dividend for the fourth quarter by 3.4 percent, signaling a sunnier outlook on the credit markets.

TD shares are up 2.7 percent.

Royal Bank of Canada (RY.TO) reported a 10% decline in profit for the third quarter as a result of write-downs and higher provisions, mainly related to US operations. The company also announced a quarterly dividend.

Royal Bank of Canada’s third-quarter net income was C$1.26 billion or C$0.92 per share, lower than C$1.40 billion or C$1.06 per share in the year-ago period, but 36% higher than C$928 million or C$0.70 per share recorded in the preceding second quarter.

The 2008-third quarter earnings were reduced by write-downs of C$263 million or C$0.20 per share and compensation adjustments, together with higher provisions for credit losses largely in U.S. banking operations.

Still, the writedowns were not as severe as many analysts were predicting, giving the stock a boost. Shares of Royal Bank are up 3.8 percent.

Breaking with its Canadian rivals, National Bank (NA.TO) reported record third quarter earnings while announcing a dividend of C$0.62 per share for the quarter.

Net income advanced to C$286 million, or C$1.73 per share, for the quarter from C$243 million, or C$1.48 per share, a year ago.

Results for the quarter included a loss of C$37 million, or C$0.15 per share, attributable to the impact of asset-backed commercial paper and a gain of C$88 million, or C$0.36 per share, on the combination of Montreal Exchange Inc. with TSX Group Inc.

Energy stocks are up fractionally after crude prices touched above $120 on Thursday morning amid concerns Tropical Storm Gustav could cause problems in the Gulf of Mexico’s oil region. Light sweet crude for October delivery moved to $119.53, up $1.38 on the session. Oil hit as high as $120.50 in the early going.

U.S. economic growth in the second quarter far exceeded the previous estimate, according to a report released by the Department of Commerce on Thursday, with the better than expected growth primarily due to an upward revision to exports.

The report showed that gross domestic product increased at an annual rate of 3.3 percent in the second quarter compared to the advance estimate of 1.9 percent growth. Economists had been expecting GDP growth for the quarter to be revised up to 2.7 percent.

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Posted in Categories: Canada, Releases, Stocks, USA.

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