The Globe and Mail reports in its Saturday edition that National Bank Financial analyst Peter Routledge says capital markets income for the six biggest Canadian banks rose 12 per cent in the quarter ended July 31, compared with the same quarter last year. The Globe's Boyd Erman writes that Mr. Routledge is forecasting "a reasonably steady increase in aggregate revenues over the next 18 months." He believes the capital markets segment "will become a significant source of revenue and earnings growth over the next 4 to 8 quarters." He expects trading to be a bit soft. He sees equity underwriting picking up. He says debt markets are wide open. Royal Bank of Canada is the biggest earner in capital markets. Mr. Routledge notes that RBC has shifted its business mix to lending from trading. The Globe notes banks tend to get underwriting business from companies they lend to. Mr. Routledge finds that "empirically, there exists a positive correlation between lending growth and underwriting revenue growth." CIBC analyst Rob Sedran shares Mr. Routledge's solid growth expectations, but not for as many quarters. He sees banks reporting capital markets related revenue for 2014 that is up 6.9 per cent.