Tue, Feb. 24, 7:51 AM
Tue, Feb. 24, 7:44 AM
- "BMO's first quarter results reflect the impact of an unsettled environment in which we saw significant movements in oil prices, long-term interest rates and the Canadian dollar," says CEO Bill Downe of his bank's nine cent earnings miss.
- The dividend is left unchanged at C$0.80.
- Canadian P&C banking adjusted net income of $503M up 4% Y/Y, partly thanks to higher revenue and lower loan loss provisions, partly offset by higher expenses.
- U.S. P&C banking adjusted net income of $205M up 14% Y/Y.
- Wealth Management adjusted net income of $186M up marginally from a year ago. AUM of $852B up 43% Y/Y, with the purchased F&C business contributing more than half of that increase.
- Capital Markets net income of $221M off 20% Y/Y, with revenue off 5%.
- CET1 ratio of 10.1%, unchanged from the previous quarter. Book value per share of $52.98 up 10% Q/Q.
- Conference call at 2 ET
- Previously: Bank of Montreal misses by C$0.09, beats on revenue (Feb. 24)
- BMO flat premarket, but off 13% YTD.
Tue, Feb. 24, 7:32 AM| Comment!
Mon, Feb. 23, 5:30 PM
- AIXG, ALKS, AMT, BMO, CBRL, CEQP, CLDT, CLDX, CMCSA, CMLP, COT, CRNT, CRZO, CYRN, DAKT, DCI, DPZ, DRH, DYAX, ECL, EXAS, EXLS, EXPD, FDML, GLDD, GTLS, HD, IART, IPXL, M, MNKD, NEO, ODP, PCRX, PF, PLL, RLGY, SAFM, SAH, SHLX, SHOO, SPAR, SPWR, SUI, THRM, TOL, TREX, TRXC, UTHR, VAL, VSI, WEN, WIN, WLK, WPC, ZINC
Thu, Feb. 19, 12:27 PM
- "Given the historical relationship between oil prices and the impairment rate for energy-related loans, we expect some mild erosion in these loans' asset quality in the coming quarters," says Moody's David Beattie. Further, revenue from both underwriting and capital markets action could fall thanks to spending cuts by the banks' oil and gas clients.
- More? Consumer credit costs could worsen thanks to slowdowns in the economies of Canada's oil-producing regions.
- Direct loan exposures to the energy sector vary by bank, says Moody's, but Scotiabank (BNS -1.3%) and RBC (RY -1%) are particularly vulnerable.
- On the positive side, the size and diversity of Canada's Big Six function as "shock absorbers" against rising energy-related credit costs, and the fall in the loonie acts as a "natural hedge" by cutting costs and limiting the impact on oil producers whose product is priced strictly in appreciating greenbacks.
- The rest of the Big Six: Bank of Montreal (BMO -1%) CIBC (CM -1.3%), TD Bank (TD -1.3%), National Bank of Canada (OTCPK:NTIOF -0.8%).
Tue, Feb. 3, 1:08 PM
- Outperforming today as equities go green, rates rise, and oil pops to $51.63 per barrel, is Canada, with stocks in Toronto up 1.25%. Outperforming the broad Canadian market are the beaten-up banks, where investors have been bailing of late thanks to worries about the slowing economy there, not to mention a big drop-off in deal flow from the energy sector.
- Royal Bank (RBC +3.6%), TD Bank (TD +3.7%), Bank of Montreal (BMO +4%), Scotiabank (BNS +4.4%), CIBC (CM +4%).
- Previously: Canadian lenders give more ground as Barclays downgrades (Jan. 30)
Fri, Jan. 30, 9:42 AM
- Citing the effect on business from falling oil prices and noting the Bank of Canada's worry over growth, Barclays downgrades TD Bank (TD -2.8%), RBC (RY -3.2%), BMO (BMO -3.3%), and Laurentian Bank (OTCPK:LRCDF) - all to Underweight from Equal Weight.
- Not downgraded, but also continuing to feel the chill in Canada's economy are Scotiabank (BNS -3.7%) and CIBC (CM -3.1%).
- Previously: Canadian GDP unexpectedly slips in November (Jan. 30)
Tue, Jan. 27, 5:09 PM
- First it was Royal Bank of Canada (NYSE:RY) and then Bank of Montreal (NYSE:BMO) quickly followed suit - each cutting their prime lending rate to 2.85% from 3%. But hey, that's just 15 basis points vs. the Bank of Canada's 25 basis point cut (to 0.75%) last week.
- In any case, it should provide at least some relief for a perky property market which could find itself under pressure thanks to the plunge in oil prices.
- Previously: Surprise rate cut not yet feeding through in Canada (Jan. 23)
Fri, Jan. 23, 3:29 PM
- TD Bank (TD +1.4%) has no plans to cut its prime rate in line with the central bank's 25 basis point rate cut this week, and Royal Bank of Canada (RY +1.2%) is also holding off, at least for now.
- "Like the others," says RBC CEO David McKay, "[we] were completely caught off guard ... I need to catch up with my team and digest what’s going on in the market and figure out what we’re going to do from here.”
- Bank of Montreal (BMO +0.6%) and CIBC (CM -0.1%) are keeping mum about their plans at the moment, and Scotiabank (BNS +0.3%) says there will be an announcement if there's any change to report.
- The purpose of the BOC rate cut, says Canaccord's Gabriel Dechaine, was to ease the affordability of Canadians' very high debt loads. He believes there will be "regulatory pressure" for the country's big banks to follow suit.
- ETFs: EWC, CNDA, EWCS, FCAN, QCAN
- Previously: Unexpected rate cut for Canada (Jan. 21)
Dec. 30, 2014, 5:36 PM
Dec. 12, 2014, 12:13 PM
- Analyst Kevin Choquette and team are "net upgrading" the sector as they expect the Canadian banks can weather a potential economic slowdown and continue to generate plenty of capital.
- Diving a bit further, Choquette, expects Ontario and Quebec to benefit from lower energy prices and the weaker loonie at the expense of Western Canada (mainly Alberta). TD Bank (TD -1.2%), RBC (RY -2%), and Bank of Montreal (BMO -1%) all have the largest exposure south of the border, and with BMO's upgrade today, all are rated Outperform.
- CIBC (CM -2.8%), on the other hand, has the highest domestic exposure, the highest concentration in mortgages, and higher reinvestment and operating leverage pressures, and is thus downgraded to Underperform.
- Previously: Rosie a buyer of Canadian banks (Dec. 12, 2014)
Dec. 12, 2014, 10:04 AM
- "The baby has been thrown out of the bathwater with this latest market selloff and it may be time to start getting our feet wet and add in more exposure," says Gluskin Sheff's David Rosenberg.
- Some metrics according to Rosie: Canada's lenders are trading at a 30% discount to the S&P/TSX index based on trailing P/E, and are also at a discount to U.S. banks ... This at the same time they're offering a 100 basis point dividend yield premium to the TSX and a 150 basis point premium to 10-year Canadian government paper.
- The only other time in the last 15 years this combination occurred was in 2012, which was followed by a period of outperformance for the group, he says.
- In other news, Credit Suisse buys the dip in Bank of Montreal (BMO +0.3%), upgrading to Outperform.
- The rest of the group: Scotiabank (BNS -0.4%), RBC (RY -1.1%), CIBC (CM -1.4%), TD Bank (TD -0.4%), National Bank of Canada (OTCPK:NTIOF -1.2%).
Dec. 10, 2014, 2:48 PM
- One of the Canadian banks' more reliable and profitable sectors for lending business is the stumbling oil industry, and another is the bubbly property sector.
- A check of last week's earnings reports finds the big Canadian banks do up to 20% of their lending to the resource sector, and borrowing plans are no doubt falling alongside the price of oil.
- The trouble in those areas come just as the banking sector looks to have put its Caribbean write-downs behind it. Scotiabank (BNS -2.9%) - which opened its first Caribbean branch in 1889 - said it would book a $451M charge , and CIBC (CM -2.4%) earlier this year expensed $543M related to the region. RBC (RY -3%) expects its remaining Caribbean operations to be profitable in 2015 after the sale of its Jamaican unit.
- Bank of Montreal (BMO -2.5%), TD Bank (TD -1.4%)
Dec. 2, 2014, 10:38 AM
- Bank of Montreal (BMO -2.1%) boosted the dividend and set a 15M share buyback, but missed estimates thanks to weak action in capital markets, with profit of $191M down 12% year-over-year thanks to a 21% decline in trading revenue to $186M. Underwriting and advisory fees, however, climbed 6.4% to $166M.
- "We are inclined to view the quarter as a neutral, given that BMO did beat our estimates in Canada [retail banking] and U.S. [retail banking], but EPS was below consensus."
- Royal Bank of Canada (RY -2.6%), Bank of Nova Scotia (BNS -1.4%), CIBC (CM -0.5%), TD Bank (TD -0.7%).
- Previously: BMO misses estimates, boosts dividend, sets buyback
Dec. 2, 2014, 7:46 AM
- BMO FQ4 adjusted net income of $1.111B up 2% Y/Y/ adjusted EPS of $1.63 up 1%.
- Adjusted ROE of 13.7% down 130 basis points from a year ago.
- Quarterly dividend boosted by $0.02 to $0.80. Announces 15M share repurchase plan, roughly 2.3% of the float.
- Canadian Personal & Commercial Banking adjusted net income of $525M up 14% Y/Y, with loan growth of 4% and deposit growth of 10%.
- U.S. Personal & Commercial Banking adjusted net income of $163M up nearly 50% Y/Y, driven by lower credit loss provisions.
- Wealth Management adjusted net income of $253M up 28% Y/Y after excluding a security gain from last year. AUM of $242B up 44% Y/Y thanks to the F&C purchase. Excluding F&C, AUM grew 17% thanks, in part, to strong markets.
- Capital Markets net income of $191M down 12% Y/Y, with revenue up 2%.
- Previously: Bank of Montreal misses by C$0.04, misses on revenue
Dec. 2, 2014, 7:35 AM| Comment!
BMO vs. ETF Alternatives
Other News & PR