(Reuters) – The Banque du Canada de la No Nova Scotia and the Banque de Montréal exceeded analysts on Tuesday for quarterly benefits motivated by solid income from capital markets and wealth management companies.
The drop in interest rates has increased appetite for mergers and acquisitions, while less regulation, taxes on lower companies and a largely pro-enterprise position in the neighbor of Canada should stimulate this activity year.
The wealth management company, a capital and expense company, has also recently exploded, powered by an increase in the number of individuals of high net value and increased investment.
Banks, third and fourth largest in Canada, have always set aside the significant sums to protect bad loans in a difficult environment in the midst of trade tensions between Canada and the United States, a key market for lenders.
President Donald Trump threatened to impose a 25% rate on all non -energy Canadian imports from March.
SCOTIA-Bank said its $ 1.16 billion Canadian (813.81 million dollars) arrangements were partly due to uncertainties related to the impact of prices on Canada and Mexico. Analysts expected provisions of $ 1.12 billion CA, according to LSEG data.
“We are well placed to compete and grow in this dynamic operating environment,” said Darryl White, CEO of BMO, in a press release.
The lender, who said that his credit problems would normalize in 2025, have recorded credit losses of $ 1.01 billion Canadian, lower than analysts’ expectations of $ 1.14 billion.
BMO and Scotiabank have looked for expansion opportunities outside the Canadian market, largely dominated by the six Big Banks, entering the markets in other parts of North America.
BMO has developed the American West Coast thanks to its acquisition from Bank of the West.
Under the CEO Scott Thomson, Scotiabany changed the emphasis to push funding to stable countries at low risk, giving a bet on the North American commercial corridor.
The plan focuses on growth closer to home, from Quebec province in the United States and Mexico. As part of the strategy, Scotiabank sold its operations in Colombia, Panama and Costa Rica in Banco Davivienda and bought a participation of around 15% in the American regional lender Keycorp.
On an adjusted basis, Scotiabank won $ 1.76 CA per share, compared to the estimates of analysts of $ 1.65 C $, according to LSEG data.
He recorded a deficiency burden of 1.36 billion Canadian dollars due to the sale of Latin American assets.
BMO declared an adjusted profit of $ 3.04 CA per share, beating the average estimate of $ 2.41 C.
($ 1 = 1.4254 Canadian dollars)
(Report by Arasu Kannagi Basil and Jaiveer Shekhawat in Bengaluru and Nivedita Balu in Toronto; edition by Tasim Zahid and Sharon Singleton)
