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While many big U.S. bank stocks are trading in the green late Wednesday morning, the large Canadian bank stocks are in the red after the first two Canadian banks to report their fiscal Q3 earnings fell short of Wall Street expectations.
Canadian banks ended their fiscal Q3 of 2022 on July 30. The Bank of Nova Scotia (NYSE:BNS), also known as Scotiabank, was the first to report on Tuesday. Volatile markets hurt its Global Banking and Markets unit and the company boosted reserves for bad debt due to a dimmer macroeconomic outlook. Royal Bank of Canada (NYSE:RY) followed on Wednesday with a similar story — increased provision for credit losses and and weaker results in Capital Markets and Personal & Commercial Banking.
Toronto Dominion (NYSE:TD) (TSX:TD:CA) stock slipped as much as 1.0% in Wednesday trading, but has since pared the decline to 0.3%. Bank of Montreal (NYSE:BMO) (TSX:BMO:CA) dipped as much as 1.6% and recently traded at -1.2%. Canadian Imperial Bank of Commerce (NYSE:CM) (TSX:CM:CA), sliding as much as 1.5%, is down 1.1% in late morning trading.
TD and CM both report Q3 results before the market opens on Thursday. BMO reports next Tuesday.
SA contributor Growth at a Good Price compares TD Bank (TD) and Bank of Montreal (BMO) and assesses how their pending U.S. acquisitions are likely to fare
Source: seekingalpha.com
