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3h ago

BMO and Scotiabank Beat Q3 Forecasts as Loan-Loss Provisions Ease

BMO also expanded its share buyback, with analysts saying provision relief drove much of the upside.

People make their way past the Bank of Montreal (BMO) building in the Financial District of Toronto, Monday, Aug. 14, 2023.
A sign for The Bank of Nova Scotia, operating as Scotiabank, in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio
National Bank of Canada reported a third-quarter profit of $1.07 billion, up from $1.03 billion a year earlier. The head office of the National Bank is seen Friday, April 21, 2017 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
BMO is working to restore online banking services for customers after a technical problem overnight. A Bank Of Montreal sign is pictured in Ottawa on Monday, July 11, 2022. THE CANADIAN PRESS/Sean Kilpatrick

Overview

  • Bank of Montreal posted net income of $2.33 billion, or $3.14 per share, with adjusted earnings of $3.23 beating consensus and provisions falling to $797 million.
  • Scotiabank reported $2.53 billion in profit, equal to $1.84 per share, with adjusted EPS of $1.88 topping the $1.73 estimate as provisions totaled $1.04 billion, down $11 million year over year.
  • BMO increased its normal-course issuer bid to 30 million shares from 20 million, subject to regulatory and TSX approval, while highlighting ongoing investment in the planned Burgundy Asset Management acquisition.
  • Executives struck a guarded tone, with BMO’s Darryl White pointing to receding tariff uncertainty and Scotiabank’s Phil Thomas noting improved retail credit trends but persistent macro risks.
  • Investors cheered the results as BMO shares rose 4.7% and Scotiabank gained 6.9%, helping lift the S&P/TSX benchmark.