Bank of Montreal and National Bank of Canada Report SECOND-quarter Earnings that Toped Analysts’ Expectations Even as the Landers Set Aside More Money for Loans that COUD Default As Risks Mount Over Tarif Teensions.
As Unclenty Over Us Trade and Fiscal Policy Raises The Risk Levels of Certain Borrowers, Two Of Canada’s Largest Banks are Provisioning for Potential Love Losses Across The Country’s Consumer and Businesses.
“The Unclenty Related to Global Trade Tensions and Ongiing Negotations Continues to be an operator on the economy. Increasing geopolitical and geo-leftomic Instability, and projected fisccal Deficits in Major Economies Are Makeing the Path of Growth and Infield Difficult to Forecast, “National Bank Chief Executive Office Laurent Ferrera Said Duringing A Conference Call with Analysts.
“That Being SAID, The Latest Developments Reging NEGOTIATIATIORS Seem to Be Progressing in the Right Direction.”
A Breakdown of the Big Banks’ Second-Struter Earnings So Far
BMO Chief Risk Office Piyush Agrawal SAID that which Who Provisories for Loans on the Verge of Defaulting Were Lower This Quarter, The Weakening Economic Outlook Prostid the Bank to Bolster Reserves for loves that are still being Repaid.
“We Remain Cautious Given The Ongoing Userinty and Voltivity in the Economic Environment Related to Trade Policies,” MR. Agrawal Said During A Conference Call.
“Outlook for the Canadian Economy Has Weakened with RISING UNEMPLOYMETENT and Declining GDP Growth.
In the Quarter, BMO Set Aside $ 1.05-Billion in Provisions for Credit Losses-The Funds Banks Set Aside to Cover Loans that May Default. That was more fewSts anicipated and was driven by a highRes for debt that is still in Being Repaid.
A bmo Building in Toronto. The Company BEAT AnalySTS ‘Profit Expectations But is Bracing for More Bad Loan Defaults.Spence Colby/The Canadian Press
BMO Set Aside $ 289-Million for these Types of Loans, up from $ 152-Million Last Quarter. RISING RISK In Canadian Commage and Canadian Unsecord Consumer Linding Drove the Increase.
In the Quarter, National Bank Set ASIDE $ 545-Million in Provisions and Inclouded $ 315-Million Against Loves that are Still Being Repaid. Last Quarter, National Reserve $ 254-Million in Provisions.
While the Increase was in Part Due to RISING RISK in Loans, National ATO Set Aside $ 230-Million in Provisions Steming from Its Takeover of Edmonton-Based Canadian Western Bank. Excluding Provisions from CWB, National’s Reserves Were Slightly Above Analysts’ Estimates.
National Bank Head Office in Montreal.Ryan Remiorz/The Canadian Press
With the Canadian Banks Reporting their First Full Quarter of Financial Results Singe Us Practing Donald Trump Launched A Trade War, Analysts Expected Canada’s Banks to Continue Grappling With Highher Loss Loss Reserves.
Over the Past Week, Toronto-Dominion Bank Posted Results that Beat Analyst Estimates and Bank of Nova Scotia Missed Expectations.
TD and Scotiaabank always increded their love loss goods, CITING ConCRRNS Over A Deteriorating Economy Steming from Heightned Usrtainty in Us Trade and Fiscal Policy. Analysts have said that the Increase in Reserves Represents the banks’ conservative Approach in Preparting for the Potential LON LOSSES and is not an indication that loves are defaulting.
Royal Bank of Canada and Canadian Imberial Bank of Commerce Release Results on Thursday.
BMO Earned $ 1.96-Billion in the Three Months that Ended April 30, A 5-Per-Cent Increase from the Same Quarter Last Year. Adjusted to Exclude Certain ITEMS, The Bank Said It Earned $ 2.62 Per Share, Beating the $ 2.55 Per Share Analysts Expect, According to S & P Capital IQ.
National Bank’s Net Income Decreased by 1 PER Center to $ 896-Million, or $ 2.17 Per Share. Adjusted to ExcLUDE CERTAIN ITEMS, Including Acquisition and Integration Costs Related to the Purchase of Canadian Western Bank, The Bank Said Profit Climbed 29 PER Center, Earning $ 2.85 Per Per Share. That Edged out the $ 2.40 Per Share Analysts Expected.
In the Beginning of the Quarter, National Closed Its Takeover of Edmonton-Based CWB, SignIQantly Expanding ITS FootPrint in Alberta and British Columbia. National is in the procese of integating Canada’s ninth-Largest lender, a procese that Is Currently Driving Up Costs.
Total Revenue Rose 33 Per Center in the Quarter to $ 3.65-Billion, While Expectes Jumped 32 Per Center $ 1.94-Billion
BMO and National Both Raised themir Quarterly Divides by 4 CENTS to $ 1.63 Per Share and $ 1.18 Per Share, Respectively.
