BMO’s third quarter net income was $1.387 billion, up 11% year-over-year, giving earnings of $2.05 per common share, up from $1.86 a year earlier. However, the bank reported that its dividend will stay at 90 cents for the next quarter; equivalent to an annual dividend of $3.60.
“Year-to-date, we delivered double-digit earnings growth with adjusted net income of $4.2 billion, driven by good underlying revenue growth, strong credit performance, and a focus on improving efficiency while making investments that strengthen customer relationships across all channels," said Bill Downe, Chief Executive Officer, BMO Financial Group.
Meanwhile, Scotiabank reported third quarter net income of $2.103 billion compared to $1.959 billion a year earlier. Diluted earnings per share were $1.66, compared to $1.54 in the same period a year ago. A quarterly dividend increase of 3 cents to 79 cents was announced.
"Canadian Banking had a strong quarter exceeding $1 billion in earnings, driven by loan and deposit growth, margin expansion and productivity improvements. Our investments in digital banking, including Tangerine, will support deeper customer relationships,” said Brian Porter, President and CEO of Scotiabank.
Speaking to reporters, Scotia’s head of Canadian banking James O’Sullivan was optimistic about the economy and said he expected the Canadian banking unit to see continued growth despite expecting mortgage growth to moderate in Toronto and Vancouver.
More market update:
Two more major Canadian banks have announced their quarterly profits.