Overview
- Both lenders reported third-quarter results on Tuesday that beat analyst forecasts, with BMO posting an adjusted profit of about $2.86 billion and Scotiabank reporting net income up 17% to roughly $2.95 billion.
- Executives at each bank described the Canada–U.S. trade tensions as manageable and said clients directly hit by the new U.S. 50% tariffs represent less than 1% of their loan books.
- Markets reacted positively to the reports, sending Scotiabank shares up about 7% and BMO shares up roughly 1%, with major Canadian banks trading near multi-year highs.
- Bank risk officers said near-term credit provisions should remain stable and that wider harm would come only if tariffs persist and trigger weaker demand, job losses or supply-chain strains that raise loan defaults.
- Senior leaders reiterated growth and return-on-equity priorities, saying they will favor organic growth and selective, small U.S. deals rather than large acquisitions as Canada prepares countertariffs set to start on Sept. 8.