Bank of Montreal and Scotiabank Report Third-Quarter Earnings

Major Canadian lenders reported divergent net income results for the third quarter, though both saw revenue growth and exceeded analyst earnings forecasts. Bank of Montreal reported a decline in net income to 1.75 billion Canadian dollars, down from 2.33 billion the previous year. This drop resulted from one-time charges, including a C$962 million charge from the sale of transportation and vendor finance businesses and C$10 million to exit 138 U.S. branches. Despite this, revenue rose 10% to C$9.9 billion, and the bank announced a share-buyback program for up to 25 million shares starting in September.

Bank of Nova Scotia reported a rise in net income to 2.95 billion Canadian dollars, up from C$2.53 billion the previous year, with revenue growing 11% to C$10.54 billion. The growth was driven by record performance in global banking, markets, and wealth management. The bank noted that while new U.S. tariffs on Canadian imports create uncertainty, strong domestic conditions should offset the impact on GDP.

Both institutions are refining their geographic footprints. Bank of Montreal agreed to sell its joint ownership of the Moneris commerce platform to Francisco Partners for C$2 billion. Bank of Nova Scotia is tightening its focus on North America through a $2.8 billion investment in KeyCorp and the acquisition of Maple Financial, while divesting operations in Colombia, Costa Rica, and Panama.