Bank of Montreal (CSE:BMO) (BMO) and Bank of Nova Scotia (TSX:BNS) (Scotiabank (TSX:BNS)) kicked off second-quarter 2023 Canadian bank earnings season on Wednesday, with both big financial institutions disappointing the Street consensus on the bottom line.
BMO stock sagged 4% to C$113 in midday trading after the company reported 2Q adjusted diluted earnings per share of $2.93, down from an adjusted profit of $3.23 per share during the same period last year, falling short of the $3.19 per share consensus compiled by financial markets data firm Refinitiv.
Shares of Scotiabank (TSX:BNS), meanwhile, slipped nearly 1% to $65.93 after the financial giant recorded an adjusted profit for 2Q of $1.70 per diluted share in its latest quarter, down from $2.18 a year earlier and missing the consensus $1.78 per-share forecast.
BMO and Scotiabank both raised amounts for credit loss provisions, with BMO’s climbing to $1.02 billion from $50 million a year ago and Scotiabank’s rising to $709 million from $219 million in 2Q 2022.
Both big Canadian banks did, however, announce dividend increases with Scotiabank boosting its quarterly payout by 2.9% to $1.06 per share while BMO upped its quarterly dividend by 2.8% to $1.47 per share.
Contact Sean at sean@proactiveinvestors.com