The benchmark index of the Toronto Stock posted a triple-digit gain on Thursday as banking shares powered ahead.

The S&P/TSX composite index closed up 219.83 points, or 1.62%, at 13,750.48.

The financials sector rallied 4.2% as major banks climbed after releasing results that were not as bad as some analysts feared.

Toronto-Dominion Bank rose 5.4% to $62.56 after it boosted its dividend.

Royal Bank of Canada shares jumped 6.3% to $48.13 after it beat market expectations and took lower writedowns than many analysts had anticipated.

The energy group fell by 0.2% as the price of oil dropped more than US$2. Oil settled down at US$115.59 a barrel after the U.S. government and the International Energy Agency said emergency stockpiles will be released if Tropical Storm Gustav interrupts U.S. oil production.

In Toronto, Canadian Oil Sands Trust slipped 2.1% to $51.21.

The junior S&P/TSX Venture composite index added 13.93 points, or 0.71%, to close at 1,963.85.

The Canadian dollar slipped 0.46 of a cent to finish at US95.07¢.

In New York, U.S. stocks rose sharply on Thursday as the government reported the economy grew at a faster-than-expected pace in the second quarter.

The U.S. Commerce Dept. said strong export growth and consumer spending helped gross domestic product expand at a 3.3% annual rate between April and June, above an initial estimate of 1.9%.

The Dow Jones industrial average closed up 212.67 points, or 1.85%, at 11,715.18. The S&P 500 closed up 19.02 points, or 1.48%, at 1,300.68. The Nasdaq composite index ended up 29.18 points, or 1.22%, at 2,411.64.