Stock news for investors: Big banks see third-quarter profit growth

The bank says it earned a net income of $2.33 billion or $3.14 per diluted share for the quarter which ended July 31. The result for the quarter compared with a profit of $1.87 billion or $2.48 per diluted share in the same quarter last year.

Revenue for the quarter totalled $8.99 billion in the quarter, up from $8.19 billion a year earlier.

BMO’s provision for credit losses amounted to $797 million for the quarter, compared with $906 million a year earlier.

On an adjusted basis, BMO says it earned $3.23 per diluted share in its latest quarter, up from an adjusted profit of $2.64 a year earlier.

The average analyst estimate had been for earnings of $2.95 per share, according to LSEG Data & Analytics.

“BMO delivered another quarter of strong earnings growth, with solid revenue performance and good expense management,” BMO chief executive Darryl White said in a statement.

“We continue to invest to drive sustainable growth across our businesses, including our recently announced acquisition of Burgundy Asset Management Ltd., adding talent and advancing digital and AI capabilities to deliver a differentiated client experience.”

The bank said its Canadian personal and commercial banking business earned $867 million in its latest quarter, down from $914 million a year ago, as higher revenue was more than offset by higher expenses and a higher provision for credit losses for the quarter.

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In the U.S., BMO said its personal and commercial banking business earned $709 million, up from $470 million in the same quarter last year. 

The bank said its wealth management business earned $436 million, up from $362 million a year ago, while BMO’s capital markets business earned $438 million, up from $389 million in the same quarter last year.

BMO’s corporate services group reported a net loss of $120 million, compared with reported net loss of $270 million a year earlier.

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Scotiabank reports $2.53B third-quarter net income, up from $1.91B a year ago

The Bank of Nova Scotia reported a third-quarter profit of $2.53 billion, up from $1.91 billion a year ago.

The bank says the profit amounted to $1.84 per diluted share for the quarter ended July 31, up from $1.41 per diluted share in the same period a year ago. 

Revenue totalled $9.49 billion for the quarter, up from $8.36 billion in the same quarter last year.

Scotiabank’s provision for credit losses for the quarter amounted to $1.04 billion, down from $1.05 billion a year earlier.

On an adjusted basis, Scotiabank says it earned $1.88 per diluted share in its latest quarter compared with an adjusted profit of $1.63 a year earlier. The average analyst estimate had been for a profit of $1.73 per share, according to LSEG Data & Analytics.

“We reported improving revenue growth which helped drive another quarter of positive operating leverage and pushed our return on equity meaningfully higher compared to the prior year,” Scotiabank chief executive Scott Thomson said in a statement.

Scotiabank said its Canadian banking business earned net income attributable to equity holders of $958 million compared with $977 million a year ago as it saw higher non-interest expenses and provision for credit losses, partly offset by higher revenues.

The bank’s international banking earned net income attributable to equity holders of $670 million, up from $629 million a year earlier.

Scotiabank’s global wealth management business earned $417 million in net income attributable to equity holders, up from $367 million in the same quarter last year, while its global banking and markets business earned $473 million in net income attributable to equity holders, up from $368 million a year ago.

The bank’s “other” category reported a net loss attributable to equity holders of $71 million in its latest quarter compared with a loss of $465 million in the same quarter last year.

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Royal Bank reports Q3 profit rose to $5.4 billion, revenue also up

Royal Bank of Canada reported a third-quarter profit of $5.4 billion, up from $4.5 billion in the same quarter last year.

The bank says the profit amounted to $3.75 per diluted share for the quarter that ended July 31, up from a profit of $3.09 per diluted share a year earlier.

Revenue totalled $16.99 billion, up from $14.63 billion.

RBC’s provision for credit losses reached $881 million for the quarter, up from $659 million a year earlier.

On an adjusted basis, RBC says it earned $3.84 per diluted share in its latest quarter, up from an adjusted profit of $3.26 per diluted share in the same quarter last year.

The average analyst estimate had been for an adjusted profit of $3.32 per share, according to LSEG Data & Analytics.

“We saw strong growth across each of our business segments reflecting the strength of our diversified business model, solid capital position, investments in technology and talent, and disciplined approach to risk and expense management,”  said RBC president and CEO Dave McKay in a press release.

The bank’s personal banking segment reported net income of $1.9 billion, up $352 million or 22% from a year earlier. Its commercial banking division reported a net income of $836 million, up $19 million or 2% from the same quarter last year. 

RBC Wealth Management reported a net income of $1.1 billion, up $147 million or 15% from last year. Capital Markets profit was $1.3 billion, up $156 million or 13% from last year.

RBC Insurance had a net income of $247 million, up $77 million or 45% from a year ago.

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National Bank of Canada reports profit of $1.07 billion in third quarter

National Bank of Canada reported a third-quarter profit of $1.07 billion, up from $1.03 billion a year earlier.

The Montreal-based bank says the profit amounted to $2.58 per diluted share for the quarter ended July 31, compared with $2.89 per diluted share a year ago.

Revenue for the quarter totalled $3.45 billion, compared with $3.00 billion in the same quarter last year.

National Bank’s provisions for credit losses in the quarter amounted to $203 million, up from $149 million.

The bank says its adjusted profit amounted to $2.68 per diluted share, unchanged from a year ago.

Analysts on average had expected an adjusted profit of $2.69 per share, according to LSEG Data & Analytics.

“The bank reported solid third quarter results, reflecting strong revenue fundamentals and credit performance, combined with synergy momentum from the (Canadian Western Bank) acquisition,”  said president and CEO Laurent Ferreira in a press release.

“With strong capital levels and a disciplined approach to credit and efficiency, we will continue to execute our CWB integration plan while investing in business growth.” 

The bank’s personal and commercial banking segment reported net income of $370 million, up 1% from $366 million a year earlier. 

Its wealth management segment reported a net income of $244 million, a 12% increase from $217 million last year. Financial Markets profit was $334 million, up 5% from $318 million last year.

The bank’s U.S. specialty finance and international segment reported a net income of $178 million in the third quarter, up 13% from $158 million in the third quarter of 2024.

The bank also announced Wednesday that its board of directors has authorized a normal course issuer bid to purchase up to eight million or roughly 2% of its common shares for cancellation. It expects to begin the process around Sept. 25 and conclude a year later.

The bid is subject to the approval of the Office of the Superintendent of Financial Institutions Canada and the TSX.

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EQB reports lower Q3 adjusted net income, raises dividend

EQB Inc. reported adjusted net income of $80.3 million during the third quarter, marking a 32% decline from the previous year.

The owner of EQ Bank says its adjusted net interest income came in at $254 million, down 6% from the same period a year earlier. EQB says its adjusted revenue came in at $310 million during the quarter, down 5% on an annual basis. 

The Toronto-based firm says its diluted earnings per share came in at $1.90. 

EQB also raised its dividend by 17% year-over-year to 55 cents per share. 

Marlene Lenarduzzi, who acted as interim president and CEO during the period, says in a press release that it was a difficult quarter for EQB as it mourned the loss of former CEO Andrew Moor. Moor died unexpectedly in June at the age of 65.

TD Bank reports $3.3B profit in third quarter as revenue rises

TD Bank Group reported a third-quarter profit of $3.34 billion, compared with a loss of $181 million in the same quarter last year.

The bank says the profit amounted to $1.89 per diluted share for the quarter ending July 31, compared with a loss of 14 cents per diluted share a year earlier.

On an adjusted basis, TD says it earned $2.20 per diluted share for its third quarter, up from an adjusted profit of $2.05 per diluted share a year ago.

Analysts on average had expected an adjusted profit of $2.05 per share, according to LSEG Data & Analytics.

Revenue for the quarter totalled $15.3 billion, up from $14.2 billion in the same quarter last year.

The bank’s provisions for credit loss totalled $971 million, down from $1.07 billion last year.

“Our teams delivered another quarter of strong performance, driven by robust client activity and disciplined execution, underscoring the strength of our diversified business model,” said TD Bank Group president and CEO Raymond Chun. “We are well positioned to build on this momentum as we compete, grow and build our bank for the future.”

The bank’s Canadian personal and commercial banking segment reported a net income of $1.95 billion in the third quarter, 4% from a year earlier. 

Wealth Management and Insurance reported a net income of $703 million, up 63% from last year. 

Its wholesale banking profit was $398 million, up 26% from last year.

CIBC reports third-quarter profit rose to $2.10 billion, revenue also up

CIBC reported a third-quarter profit of $2.10 billion, up from $1.80 billion in the same quarter last year.

The bank says the profit amounted to $2.15 per share for the quarter ending July 31, up from $1.82 per share last year. Revenue totalled $7.25 billion, up from $6.60 billion.

The bank’s provisions for credit loss totalled $559 million, up from $483 million last year.

On an adjusted basis, CIBC says it earned $2.16 per share, up from $1.93 per share last year. Analysts on average had expected earnings of $2.00 per share, according to LSEG Data & Analytics.

“In a dynamic environment, our proactive and disciplined approach to managing our business, robust capital position, and balance sheet strength continue to serve us well,” said CIBC president and CEO Victor Dodig in a press release. “Across our connected team, we are leveraging our strategic investments, including in our people, platforms, technology and artificial intelligence to deliver for our clients and create sustainable value for all our stakeholders.”

The bank’s personal and business banking segment reported a net income of $812 million in the third quarter, up $119 million or 17% from a year earlier. Canadian Commercial Banking and Wealth Management reported a net income of $598 million, up $97 million or 19% from last year. 

Capital Markets profit was $540 million, up $251 million or 87% from last year.

Meanwhile, U.S. Commercial Banking and Wealth Management had a net income of $254 million, up $38 million or 17% from a year ago.

CIBC also announced Thursday it intends to purchase up to 20 million or 2.2% of common shares under a normal course issuer bid for the purpose of cancellation. It said the normal course issuer bid, which is subject to the approval of the TSX, will provide additional flexibility in managing its capital position and generate shareholder value.

Laurentian Bank of Canada reports higher profit, lower revenue

Laurentian Bank of Canada says it had a net income of $37.5 million in the third quarter, up from a profit of $34.1 million in the same quarter last year.

The Montreal-based bank says earnings worked out to 73 cents per share for the quarter ending July 31, an increase from 67 cents per share last year.

Laurentian says total revenue for the quarter was $246.8 million, down from $256.5 million last year.

The bank says its adjusted net income came to $39.6 million, or 78 cents per share, down from $43.1 million, or 88 cents per share in the same quarter last year.

Analysts on average had expected an adjusted profit of 73 cents per share, according to LSEG Data & Analytics.

The bank’s provisions for credit loss totalled $11.1 million in the quarter, compared with $16.3 million in the same quarter last year.

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