MONEY & BUSINESS: Canada’s BMO, Scotiabank report lower income on higher provisions – One America News Network

(Reuters) – Bank of Montreal and Bank of Nova Scotia on Wednesday reported lower adjusted earnings at home as the Canadian banks set aside higher provisions.

The results come as investor confidence has deteriorated in markets amid high volatility triggered by U.S. banking turmoil and a relentless rate-hiking cycle.

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BMO, which completed its acquisition of Bank of the West in February, however, reported a rise in second-quarter profit as higher interest rates shored up its net interest income.

Adjusted income from Scotiabank’s Canadian banking segment fell 10% while that of BMO’s fell 8%, reflecting higher provisions for credit losses.

Provisions for credit losses jumped to C$709 million from C$219 million, due to economic uncertainty and challenging market conditions in Chile and Colombia amid rising inflation, Scotiabank said.

BMO said adjusted provision for credit losses was C$318 million at the end of the second quarter, compared with C$50 million a year ago.

BMO’s net income, excluding one-off items, rose to C$2.22 billion ($1.65 billion), or C$2.93 per share, for the three months ended April 30, compared with C$2.19 billion, or C$3.23 a share

For Scotiabank, it fell to C$2.17 billion ($1.62 billion), or C$1.7 a share, from C$2.77 billion, or C$2.18 a share, a year earlier.

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·05/26/2023·0

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($1 = 1.3372 Canadian dollars)

(Reporting by Nivedita Balu in Toronto, and Mehnaz Yasmin and Jaiveer Singh Shekhawat in Bengaluru; editing by Jason Neely and Bernadette Baum)