Last week, TD Bank (TD), Bank of Montreal (BMO), Royal Bank (RY), and ScotiaBank (BNS) posted quarterly results. Overall, markets did not like them. TD stock fell the most at around 2%, compared to a 1% drop for RY and BMO stock. Bank of Nova Scotia gained 1.76%.
Scotiabank reported revenue falling by 0.9% Y/Y to $7.98 billion. Its return on equity worsened to 13.4%, compared to 15.9%. Its PCL or provision for credit losses almost tripled to $637 million. Markets bid the stock higher on expectations that loss provisions address future losses.
TD, whose acquisition of First Horizon is delayed, posted strong earnings of $2.23 a share. The bank benefited from the income it earns from deposits. Net interest income soared to $7.73 billion, up from $6.3 billion last year. Its PCL was $690 million.
Royal bank posted a 15.5% Y/Y increase in revenue. It also reported a strong capital position with a CET1 ratio of 12.7%. Its PCL also increased from $427 million to $532 million.
BMO posted a 15.3% Y/Y drop in revenue. Its PCL swung from a recovery of $99 million last year. It posted a PCL of $217 million.
Among the banks, RBC has the best report. The post-earnings selloff will likely rebound.
