Mon, Nov. 16, 10:06 AM
- With the catalyst of the approval of the OneMain Financial purchase (and the stock's subsequent 11% gain) now in the rear-view mirror, BMO Capital and Macquarie downgrade Springleaf Holdings (LEAF -0.2%) from Outperform to Market Perform (NYSE:BMO) and Neutral (Macquarie).
- Previously: Springleaf soars as OneMain purchase is approved (Nov. 13)
Mon, Nov. 2, 7:48 AM
- The bank previously had an internal limit of C$1.25M on loans to borrowers with no in-country credit history, making things difficult in Vancouver, where the median price for a single-family home in the city's desirable west side is C$2.87M - up 31% over the last two years.
- This high-end mortgage market currently is the domain of HSBC Canada, CIBC (NYSE:CM) and Bank of Montreal (NYSE:BMO). RBC (NYSE:RY) has just an 8% market share.
- The move may help put to rest the myth of Chinese buyers showing up in the country with suitcases full of cash with which to buy property. It turns out they use credit as well.
Tue, Oct. 27, 3:03 PM
- Worried about the effect of the energy crash on Canadian lenders, the market is ignoring structural improvements in revenue and loan mix, balance sheet improvements, and profitability, says analyst Kevin Choquette.
- Share prices are lower by about 5% this year even though earnings are up 6% and dividends by 8%. Toss in price-to-book values at their lowest level since during the financial crisis.
- It's a great opportunity to buy, says Choquette, reiterating Outperform ratings on Royal Bank of Canada (RY -0.4%) and Bank of Montreal (BMO -0.8%), and upgrading National Bank of Canada (OTCPK:NTIOF -0.3%) to Outperform.
Thu, Oct. 8, 9:52 AM
Thu, Sep. 10, 5:17 PM
- In continued divestment, General Electric (GE +0.5%) says it's agreed to sell its GE Capital Transportation Finance business to Bank of Montreal's BMO Financial Group (BMO +0.5%).
- Terms were undisclosed. GE says with its continuing sales, it's hit $85B and is on track to reduce ending net investment by $100B. The sale of its Transport Finance unit represents about $9B in ENI.
- It'll contribute about $0.7B in capital to an overall target of about $35B in dividends expected to be paid to GE under its plan. GE says it expects to be substantially done with its exit strategy by the end of 2016.
- The deal's expected to close in December.
Tue, Aug. 25, 7:39 AM
Tue, Aug. 25, 7:32 AM
Mon, Aug. 24, 5:30 PM
Mon, Jul. 20, 10:20 AM
- Continuing a move to beef up its capital markets business, Piper Jaffray (PJC -0.1%) CEO Andrew Duff lands Bank of Montreal's (BMO -0.5%) GKST - the bank's municipal bond sales, trading, and origination business.
- PJC last month also added a group of rainmakers from Sterne Agee (after Sterne's sale to Stifel).
- BMO purchased Griffin, Kubik, Stephens & Thompson in 2008 for about $33M, and its decision to sell follows the exit of a trio of key players at the unit.
- The deal is expected to close in Q4. Terms were not disclosed.
- Source: Press Release
Thu, Jul. 2, 1:59 PM
- Canadian equity financings of C$30.3B were a record, and up 40% from a year ago, according to Thompson Reuters, and Royal Bank of Canada (NYSE:RY) led the way on advisory roles, with Bank of Montreal (NYSE:BMO) and CIBC (NYSE:CM) rounding out the top three.
- The largest deal to-date was Element Financial's C$2B raise, followed by Valeant's C$1.9B.
Fri, Jun. 26, 10:55 AM
- The operation includes more than 200 professionals, about 830 plans, and assets under administration of $26B, and BMO's decision to sell is part of the bank's strategy to focus on its asset management business. BMO will continue to manage a portion of the investments in the plans.
- The buyer is Indianapolis' OneAmerica Financial Partners. Terms were not disclosed and the deal is expected to close in Q3.
- Source: Press Release
Fri, May 29, 2:25 PM
- The last of Canada's big six lenders to report FQ2 results, Bank of Nova Scotia (BNS +1.2%) beat estimates (as did the others), helped by strong action in capital markets. The bank also announced a 24M share buyback.
- “These results were on balance better than I would have expected a few weeks ago, however they’re not strong enough to really serve as much of a catalyst for the stocks,” says Edward Jones' Jim Shanahan. "The stocks are trading cheaper, but given a weaker loan growth outlook and weaker return profiles, that’s probably warranted.”
- RBC Capital is impressed enough with Scotiabank's results to upgrade to Outperform from Sector Perform.
- Checking the scorecard this week: BNS is up 1.2%, while CIBC (NYSE:CM) is down 1.8%, Royal Bank of Canada (NYSE:RY) is down 2.7%, Bank of Montreal (NYSE:BMO) down 3.9%, and TD Bank (NYSE:TD) 4.3%.
- YTD, Scotiabank also leads with just a marginal decline, while the other four lenders are down anywhere from about 8%-13%.
Wed, May 27, 7:53 AM
- Canadian P&C adjusted net income of $487M up 1% Y/Y. Revenue up 4%, expenses of 6%. Personal banking loan and deposit growth of 2% and 6%, respectively. Commercial banking loan and deposit growth of 6% and 8%, respectively.
- U.S. P&C adjusted net income of $176M up 14%. Revenue of $707M fell 1%. Adjusted noninterest expense of $452M about flat. Loan growth of 6% led by C&I loans up 17%.
- Wealth Management adjusted net income of $265M up 34%, thanks to a mixture of organic growth and the acquired F&C business.
- Capital Markets net income of $296M down 3%. Revenue growth up 6% thanks to stronger trading results.
- CET1 Ratio of 10.2% up 10 bps during the quarter.
- Earnings call at 2 ET
- Previously: Bank of Montreal declares $0.82 dividend (May 27)
- Previously: Bank of Montreal beats by $0.05, misses on revenue (May 27)
- BMO flat premarket
Wed, May 27, 7:33 AM
Wed, May 27, 7:31 AM
Tue, May 26, 5:30 PM
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