What did the first round of Canadian bank earnings tell investors?

Bank of Montreal (BMO) reported Q3 net interest income up 5% YoY, but net interest margin down 3 bps sequentially. Expenses rose 9%, but efficiency ratio improved to 54.9%. BMO plans to sell certain businesses, adding 50 bps to its CET1 ratio. It also announced a share buyback plan. Canadian and U.S. banking segments showed growth, with wealth management and capital markets net income up 22% and 45% respectively. Credit losses declined, and the bank maintained its fiscal 2026 credit guidance.

Scotiabank reported Q3 earnings of $2.95B ($2.27 per share), exceeding estimates. Adjusted EPS was $2.28, topping expectations of $2.10. Revenue rose 11% to $10.53B, while expenses increased 9% to $5.56B. CEO Scott Thomson highlighted strong performance across all business lines and anticipates double-digit EPS growth in domestic banking. The bank's return on equity was 14.2%.

BMO's Q3 earnings, possibly its last before selling its transportation unit, showed improved credit conditions in the trucking industry. Net writeoffs were stable at Ca $24M, while provisions for credit losses fell to $15M, the lowest since Q1 2023. Allowances for credit losses and gross impaired loans also declined, indicating a strengthening freight market. Gross loans and acceptances for the transportation sector were $12.78B, up slightly from the previous quarter, but loan originations dropp

Bank of Montreal reported Q3 net income of $1.75B, down from $2.33B YoY due to a $962M charge. Adjusted net income rose 19% to $2.85B, beating estimates. BMO announced a share buyback and maintained its dividend. All segments showed growth, with capital markets up 45%.

Bank of Montreal (BMO) and Bank of Nova Scotia (Scotiabank) reported Q3 profits exceeding estimates, driven by capital markets and domestic business strength. BMO's adjusted net income rose 19.2% to C$2.86B, while Scotiabank's increased 18% to C$2.97B. Both banks benefited from record earnings in key segments, despite ongoing Canada-U.S. trade tensions.

Bank of Montreal (BMO) reported a 25% drop in net income to $1.75B, or $2.38 per share, but beat estimates with adjusted earnings of $3.96 per share. The bank announced a 25M share buyback plan and maintained its dividend. Adjusted ROE improved to 14% from 12% YoY. BMO also set aside $722M for credit losses, lower than expected.