On Tuesday, three major banks reported earnings and all of them saw increases in earnings and AUM. Check out the details below.
BMO
For the first quarter ended January 31, 2017, BMO reports net income of $1.49 billion and earnings per share (EPS) of $2.22. That compares to $1.1 billion and EPS of $1.58 in Q1 2016
The bank’s wealth management division reported net income of $266 million, up $119 million or 81% from a year ago.
Over the last year, BMO’s assets under management and administration increased $2 billion to $865 billion. In its report to shareholders, the bank credits this to equity market appreciation being offset by unfavourable foreign exchange movements. It adds, “Year over year, loans and deposits grew by 8% and 11%, respectively, as we continue to diversify our product mix.”
However, when comparing AUM to Q4 2016, “[AUM] declined $10 billion, or 1%, driven by unfavourable foreign exchange movements […]. Quarter over quarter, loans and deposits grew by 3% and 4%, respectively.”
In a breakdown, BMO says traditional wealth reported net income of $162 million, up $37 million or 30% from a year ago, while insurance net income was above-trend at $104 million, up $82 million from a year ago—this was due to favourable market movements in the current quarter.
On Tuesday, BMO also announced that it plans to purchase, for cancellation, up to 15 million of its common shares under a normal course issuer bid through the facilities of the TSX. Bank of Montreal (the Bank) intends to file a notice of intention with the TSX in this regard.
Scotiabank
For the quarter ended January 31, 2017, Scotiabank reported first quarter net income of $2 billion. That compares to $1.8 billion in the same period last year. Diluted earnings per share were $1.57, compared to $1.43 in the same period a year ago, while return on equity was 14.3% versus 13.8% in Q1 2016.
For the quarter, assets under management for Canadian banking were $148 billion, compared to $135 billion during the same period a year earlier, says Scotiabank’s report to shareholders. Average assets were $316 billion, compared to $307 billion a year earlier, while average liabilities were $242 billion versus $229 billion.
The bank’s overall assets under management were $194 billion, compared to $179 billion a year earlier.
Scotiabank’s Canadian banking division reports net income attributable to equity holders of $981 million, an increase of $106 million or 12% over the same quarter last year. This was due to growth in net interest income, including a higher margin, and higher banking and wealth management revenues. These were partially offset by increases in non-interest expenses and provision for credit losses. The quarter also included a gain on sale of real estate that contributed to an increase in net income of 5%.
For International banking, Scotiabank reports net income attributable to equity holders of $576 million, an increase over the same quarter last year due to retail loan and deposit growth, strong net interest margin and fee growth, and benefits from cost reduction initiatives.
For more on Laurentian Bank’s earnings, which also came out today, click here.
For past earnings releases, read:
Desjardins Group reports 1.5% increase in operating income
CIBC wealth management profit gains 12%