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2mo ago

Scotiabank and BMO Surpass Profit Expectations with Growth in Capital Markets and Wealth Management

The Canadian banks reported strong first-quarter earnings despite challenges, supported by strategic shifts and increased activity in key sectors.

The logo of the Bank of Montreal (BMO) is seen on their flagship location on Bay Street in Toronto, Ontario, Canada March 16, 2017. REUTERS/Chris Helgren/File Photo

Overview

  • Scotiabank and Bank of Montreal (BMO) exceeded analysts' profit estimates for the first quarter, driven by robust performance in capital markets and wealth management divisions.
  • Scotiabank's adjusted earnings rose to C$1.76 per share, surpassing the C$1.65 per share expected, while BMO's adjusted earnings reached C$3.04 per share, beating the C$2.41 estimate.
  • Both banks increased provisions for credit losses, with Scotiabank allocating C$1.16 billion and BMO C$1.01 billion, reflecting cautious strategies in a challenging economic environment.
  • Scotiabank continued its strategic pivot by selling operations in Latin America and acquiring a 14.9% stake in U.S.-based KeyCorp, focusing on growth within the North American trade corridor.
  • BMO highlighted its U.S. expansion through the acquisition of Bank of the West and reported significant revenue growth across its business segments, particularly in capital markets and wealth management.