Canada's Big Banks First-Quarter Earnings

Shares of two of Canada's biggest banks moved in opposite directions following the release of their first-quarter earnings reports.

Bank of Nova Scotia (Scotiabank) Shines

In morning trading, Scotiabank saw a 3.6% increase, reaching C$66.21. The bank is now up 2.7% for the year. Scotiabank reported first-quarter income of 2.17 billion Canadian dollars ($1.61 billion), or C$1.68 a share, surpassing analyst expectations. Adjusted earnings were C$1.69 a share, higher than the C$1.61 mean forecast of analysts polled by FactSet.

The positive results were driven by stronger-than-expected growth in both net interest income and noninterest revenue, despite a higher provision for credit losses compared to the previous year.

Bank of Montreal (BMO) Faces Challenges

On the other hand, Bank of Montreal experienced a 3.9% decrease, falling to C$121.92. The bank's first-quarter income reached C$1.29 billion, or C$1.73 a share, with adjusted earnings at C$2.56 a share, missing the C$3.02 consensus forecast.

The bank cited higher loan-loss reserves and weakness in its capital markets business as contributing factors to the lower-than-expected results.

Outlook for Both Banks

Scotiabank and Bank of Montreal have set the tone for earnings season among Canada's banks. While Scotiabank's performance exceeded expectations, Bank of Montreal faces challenges in its capital markets segment.

Stay tuned as more Canadian banks report their quarterly earnings in the coming days.