Banks have mixed Q2 results
Geoffrey Blain
Issue date: 6/9/09 Section: Business
"Solid underlying performances in Canadian and International Banking and a record quarter from Scotia Capital allowed us to earn through higher credit provisions and a challenging economic environment," said Rick Waugh, Scotia Bank's chief executive officer.
The Bank of Montreal (BMO) reported a net income of $350 million, or 61 cents a share, which included a writedown of $80 million for "capital market environment changes", as BMO also demonstrated the nastiness of the global recession.
"Our core businesses have again performed well, particularly in the context of a recessionary environment," said Bill Downe, President and Chief Executive Officer, BMO Financial Group. Downe cited strong growth in the bank's personal and commercial banking unit as a sign of good things to come.
The National Bank of Canada beat the odds and was the only among the Big Six banks to realize an increase in profits. The Montreal, Quebéc-based bank reported an increase of profits of 46 per cent for a net income of $241 million, or $1.41 per share, for the quarter. The bank, who operates mainly in Quebec, said the strength of the Quebec economy relative to the rest of Canada and the world helped offset a $20 million charge related to asset-backed commercial paper.
The best results among the Big Six came from Toronto Dominion (TD) Bank who reported net income of $618 million, or 68 cents a share, down 27 per cent from last quarter but still impressive enough for TD's stock price to increase almost seven per cent after the announcement.
"While the next phase of this global recession will hurt all banks, at TD we're extremely well positioned not just to weather the storm but also to prepare the bank for future growth," said TD Bank Chief Executive Officer Ed Clark.
"In fact, there is a reasonable chance this may be a recession where we actually grow volumes through the downturn, as we continue to fill the gaps left by those who have exited the lending market and help ensure access to credit."
The Bank of Montreal (BMO) reported a net income of $350 million, or 61 cents a share, which included a writedown of $80 million for "capital market environment changes", as BMO also demonstrated the nastiness of the global recession.
"Our core businesses have again performed well, particularly in the context of a recessionary environment," said Bill Downe, President and Chief Executive Officer, BMO Financial Group. Downe cited strong growth in the bank's personal and commercial banking unit as a sign of good things to come.
The National Bank of Canada beat the odds and was the only among the Big Six banks to realize an increase in profits. The Montreal, Quebéc-based bank reported an increase of profits of 46 per cent for a net income of $241 million, or $1.41 per share, for the quarter. The bank, who operates mainly in Quebec, said the strength of the Quebec economy relative to the rest of Canada and the world helped offset a $20 million charge related to asset-backed commercial paper.
The best results among the Big Six came from Toronto Dominion (TD) Bank who reported net income of $618 million, or 68 cents a share, down 27 per cent from last quarter but still impressive enough for TD's stock price to increase almost seven per cent after the announcement.
"While the next phase of this global recession will hurt all banks, at TD we're extremely well positioned not just to weather the storm but also to prepare the bank for future growth," said TD Bank Chief Executive Officer Ed Clark.
"In fact, there is a reasonable chance this may be a recession where we actually grow volumes through the downturn, as we continue to fill the gaps left by those who have exited the lending market and help ensure access to credit."
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