The Investment Industry Association of Canada reported that the Canadian securities industry posted another solid performance in the third quarter, albeit softer than the stellar first half.

Industry operating profit totaled $1.2 billion, down 5.8% from the second quarter but up 8.5% from the same period last year. “The industry is poised to post its fourth consecutive year in record profit. It’s been a phenomenal year for all business segments — the robust M&A and stock markets have bolstered earnings for all firms”, said Ian Russell, president and CEO of the IIAC, in a news releasel

Market activity during the third quarter was the fourth strongest on record, the IIAC said. This strength came despite the period’s relatively weaker performance, which reflected the summer lull and heightened market volatility, which dampened commissions in the period.

For the first nine months, operating profit totaled a record high of $4.1 billion, an increase of 31% over the same period last year.

While overall operating profit was down for the quarter, the IIAC said that one of the highlights of the quarter — and year — has been the explosive breakout in corporate advisory fees. “Underwriting continues to dominate investment banking, but advisory fees in the first nine months surged to $797 million, an 80% increase over last year’s level,” it reported. “For the integrated firms, the group has benefited immensely from the boom in high-end M&A deals, which dominated the M&A landscape this year.”

Industry employment is also at a record high level. Employment in the industry reached just under 40,600 in the quarter, up 4.5% year-over-year.