Aug. 26 (Bloomberg) -- and , the key Canadian banks to announcement third-quarter earnings, said profits declined more than analysts forewarn on rising credit losses. Bank of Montreal, Canada's fourth-biggest bank, said for the years ended July 31 strike down 21 percent to C$521 million ($497 million), or 98 cents a share, its fifth unambiguous advantage decline. Scotiabank, the No. 3 lender, said clear dropped 1.9 percent to C$1.01 billion, or 98 cents a share.
Canada's six biggest banks will undoubtedly set aside twice as much greenbacks for disappointing loans this billet mid a U.S. protection drop and the slowest productive proliferation in Canada since 1992, analysts estimate. Bank of Montreal set aside C$484 million for regretful loans, five times more than a year earlier, while Scotiabank's provisions rose 73 percent to C$159 million. ''The direction is still down,'' said of Mawer Investment Management in Calgary, which oversees C$5.4 billion in assets including banks. ''This quarter's bad, next quarter's in all probability not successful to be much prettier.'' Bank of Montreal knock 12 cents to C$43.94 at 4:10 p.m. trading on the. Scotiabank level C$1.19, or 2.5 percent, to C$46.45. Missed Estimates Bank of Montreal's be of profit to excluding one-time items was C$1 a share, the Toronto-based bank said, missing the median of C$1.20 a appropriate from 12 analysts in a Bloomberg survey.
Scotiabank, also based in Toronto, earned 99 cents a allotment on that measure, according to National Bank Financial analyst , missing his C$1.04 estimate. Profit at Bank of Montreal's BMO Capital Markets investment bank increased 34 percent to C$259 million from a year earlier, as trading proceeds surged more than fivefold to C$220 million. Results in the module were pared by C$19 million in costs for matter cuts, and pretax writedowns of C$134 million for the declining value of responsibility investments, preferred shares and Canadian asset- backed commercial paper.
Bank of Montreal has bewitched C$898 million in debt-related writedowns in the done four quarters, joining other banks amidst a worldwide acknowledgement crush that has breadth from the U.S. as defaults on subprime mortgage loans surge. Bank of Montreal's provisions for allowance losses included C$247 million for two corporate loans linked to the U.S. habitation market, the band said.
Debt Writedowns The world's biggest economic companies have disclosed more than $500 billion in losses and writedowns from investments tied to U.S. subprime mortgages since 2007. Canada's banks have collectively charmed more than C$10.1 billion in encumbrance writedowns in the sometime year, with more expected in the third part from and Canadian Imperial Bank of Commerce.
Bank of Montreal's Canadian consumer-banking kill 3.7 percent to C$343 million on higher taxes and costs for adding branches and hiring mortgage specialists and pecuniary planners. Profit from its Chicago-based Harris consumer bank rose 12 percent to C$28 million, while avail from its private- customer group, which includes brokerage, investing services and reciprocal funds, rose 7.8 percent to C$110 million.
Scotiabank's salary from Canadian banking jumped 17 percent to a diary C$463 million on increases in deposits and mortgages. International banking profit, from about 50 countries including Chile and Jamaica, climbed 21 percent before preferred dividends to C$335 million. Economic Slowdown Profit at Scotia Capital rose 6 percent to C$297 million in the period, as interest from its oil-advisory part Scotia Waterous and fixed-income fees reimburse a reduction in derivatives trading. Slower financial lump globally means Scotiabank is ''unlikely'' to match its goal of boosting take per piece by 7 percent to 12 percent this year, the bank said.
Loan-loss provisions will lengthen over the ''medium-term'', although the bank's home operations haven't seen any spillover from the U.S. acknowledgment crisis, Chief Risk Officer told investors today. ''Scotiabank remains the best of a beleaguered assort in the Canadian banking sector,'' Merrill Lynch & Co. analyst wrote in a note to investors today. Scotiabank's net rose 5.3 percent to C$3.48 billion, while Bank of Montreal's climbed 7.5 percent to C$2.75 billion.
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