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• Bank of Nova Scotia press release (NYSE:BNS): Q1 Non-GAAP EPS of C$1.85 misses by C$0.17.
• Revenue of C$7.98B (-0.9% Y/Y) misses by C$280M.
• Return on equity of 13.4%, compared to 15.9%
• The provision for credit losses was $638 million, compared to $222 million, an increase of $416 million.
• The provision for credit losses ratio increased 20 basis points to 33 basis points.

• Now Read: Scotiabank: Buy The Drop On This Value Stock

Bank of Montreal (NYSE:BMO) on Tuesday turned in better-than-expected adjusted EPS for the quarter ended Jan. 31, 2023, as revenue climbed both on Q/Q and Y/Y, helped by its Canadian and U.S. personal and commercial banking operations.

Q1 adjusted EPS of C$3.22 (US$2.37), vs. the C$3.16 consensus, rose from C$3.04 in the prior quarter and down from C$3.89 in the year-ago quarter.

Adjusted revenue, net of CCPB, of C$7.29B (US$5.37B), missing the C$7.35B consensus, increased from C$6.91B in Q4 2022 and from C$7.11B in Q1 2022.

“We had a very good start to the year, with continued strong operating performance in our Canadian and U.S. Personal and Commercial businesses and improving momentum in BMO Capital Markets, benefitting from our strategic investments in talent and technology,” said CEO Darryl White.

Total net loans and acceptances of C$559.9B rose from C$564.6B in Q4; customer deposits increased to C$545.1B from C$544.4B in the previous quarter.

Q1 provision for credit losses of C$217M fell from C$226M in the prior quarter and compared with a recovery of C$99M in the year-ago quarter.

Q1 net interest income of C$4.02B rose from C$3.77B in Q4 and was roughly even with Q1 2022.

Noninterest expense dropped to C$4.42B from C$4.78B in the prior quarter and increased from C$3.85B in the year-ago period.

Adjusted return on equity was 13.4% vs. 12.9% in the prior quarter and from 18.8% a year ago.

Canadian Personal & Commercial Banking adjusted net income of C$980M increased from C$917M in Q4 and declined from C$1.00B in Q1 2022.

U.S. P&C adjusted net income was C$699M climbed from $C662M in the prior quarter and from C$682M in the year-ago period.

BMO Wealth Management adjusted net income of C$278M vs. C$298M in the prior quarter and C$316M in the year-ago quarter.

BMO Capital Markets adjusted net income of C$510M rose from C$363M in Q4 and declined from C$712M in Q1 2022.

Adjusted results in Q1 2023 excluded: a loss of C$1.46B related to the management of the impact of interest rate changes between the announcement and closing of the Bank of the West acquisition on its fair value and goodwill, compared with revenue of C$413M in the prior year; acquisition and integration costs of C$181M vs. C$10M in the prior year; C$371M of tax expenses related to certain tax measures enacted by the Canadian government; and a $6M legal provision comprising of interest expense and legal fees related to a lawsuit associated with a predecessor bank, M&I Marshall and Ilsley Bank.

Earlier, Bank of Montreal (BMO) non-GAAP EPS of C$3.22 beats by C$0.06, revenue of C$6.47B misses by C$870M

• Now Read: Bank of Montreal (BMO) Q1 2023 Earnings Call Transcript

Magna announced it is investing more than $470M to expand its operations across Ontario, Canada. The growth includes a new battery enclosures facility in Brampton to support the Ford F-150 Lightning and future OEM programs. In addition to the Brampton facility, Magna is growing in its locations in Guelph, Belleville, Newmarket, Windsor, and Penetanguishene. These expansions follow new business awards from various automakers in key product areas. They are also supported by $23.6M in grants from the Ontario government to bring additional high-quality jobs to the region with ongoing training and development programs for employees. The new and expanded operations are expected to bring more than 1,000 new jobs to Ontario over the next few years.Details of the new and expanding facilities include: Brampton: A new 490,000 square-foot leased facility to manufacture battery enclosures for electric vehicles. Operations to begin in Q2 2023, roughly 560 new jobs are expected at full production. Guelph: Magna is adding e-coat, molding and welding capacity to its exteriors plant to support new electric vehicle production. The expansion will total 120,000 square-feet, and production is planned to begin in Q2 2023. Approximately 175 new jobs are expected. Belleville: Magna’s lighting plant is adding to its capabilities for printed circuit board assemblies and will start operations in Q4 2023. Up to 100 new jobs are expected. Newmarket: Magna’s mechatronics facility which produces vehicle access systems including side door latches, electronic control units, and power systems – is growing its business and expects approximately 75 new jobs. Windsor: Magna’s mechatronics plant adds new business for powered aluminum tonneau covers. The facility has recently started those operations and is planning to add roughly 110 new jobs. Penetanguishene: Magna’s mechatronics facility is growing its tailgate hinges production and more than 15 new jobs are planned.

Enbridge Inc. (ENB) on Friday reported a fourth-quarter loss of $786 million, after reporting a profit in the same period a year earlier.

On a per-share basis, the Calgary, Alberta-based company said it had a loss of 39 cents. Earnings, adjusted for non-recurring costs, came to 46 cents per share.

The results did not meet Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 56 cents per share.

The oil and natural gas transportation and power transmission company posted revenue of $9.89 billion in the period.

For the year, the company reported profit of $2.31 billion, or 98 cents per share. Revenue was reported as $41 billion.

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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on ENB at https://www.zacks.com/ap/ENB

 Suncor Energy Inc. (SU) on Tuesday reported fourth-quarter earnings of $2.02 billion.

The Calgary, Alberta-based company said it had profit of $1.50 per share. Earnings, adjusted for non-recurring gains, were $1.33 per share.

The results beat Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $1.26 per share.

The energy company posted revenue of $10.21 billion in the period, also exceeding Street forecasts. Three analysts surveyed by Zacks expected $9.65 billion.

For the year, the company reported profit of $6.98 billion, or $5.02 per share. Revenue was reported as $44.97 billion.

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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on SU at https://www.zacks.com/ap/SU

 Magna International Inc. reported its fourth-quarter profit fell compared with a year earlier as its sales gained five per cent.

The auto parts company, which keeps its books in U.S. dollars, says it earned US$95 million or 33 cents per share in the quarter ended Dec. 31, down from US$464 million or US$1.54 per diluted share in the last three months of 2021.

Sales totalled US$9.57 billion, up from US$9.11 billion a year earlier.

Magna also raised its quarterly dividend by a penny to 46 cents per share.

On an adjusted basis, Magna says it earned 91 cents per diluted share in the fourth quarter of 2022, down from an adjusted profit of US$1.30 per diluted share in the same quarter a year earlier.

Analysts on average had expected a profit of US$1.02 per share, according to estimates compiled by financial markets data firm Refinitiv.

This report by The Canadian Press was first published Feb. 10, 2023.

• The core personal consumption expenditures price index increased 0.6% for the month, and was up 4.7% from a year ago.
• Headline inflation increased 0.6% and 5.4% respectively. All the numbers were higher than estimates.
• The numbers suggest inflation accelerated to start the new year, putting the Fed in a position where it likely will continue to raise interest rates.

https://www.cnbc.com/2023/02/24/key-fed-inflation-measure-rose-0point6percent-in-january-more-than-expected.html

Monday February 27

Euro zone consumer and economic confidence

(8:30 a.m. ET) Canada’s current account balance of Q4.

(8:30 a.m. ET) U.S. durable and core orders for January. The Street is projecting month-over-month declines of 3.9 per cent and 0.1 per cent, respectively.

(10 a.m. ET) U.S. pending home sales for January. Consensus is an increase of 1.0 per cent from December.

(10:30 a.m. ET) U.S. Dallas Fed Manufacturing Activity for February.

Earnings include: Ivanhoe Mines Ltd.; Li Auto Inc.; MEG Energy Corp.; NexGen Energy Ltd.; Occidental Petroleum Corp.; Ovintiv Inc.; Workday Inc.

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Tuesday February 28

Japan industrial production and retail sales

(8:30 a.m. ET) Canadian real GDP for Q4. The Street expects an annualized rate rise of 1.5 per cent.

(8:30 a.m. ET) Canada’s monthly GDP for December. Consensus is flat from November.

(8:30 a.m. ET) U.S. goods trade deficit for January.

(8:30 a.m. ET) U.S. wholesale and retail inventories for January.

(9 a.m. ET) U.S. S&P CoreLogic Case-Shiller Home Price Index (20 city) for December. The Street is forecasting a decline of 0.5 per cent month-over-month and rise of 4.8 per cent year-over-year.

(9 a.m. ET) U.S. FHFA House Price Index for December. Consensus is a drop of 0.2 per cent from November but up 6.5 percent year-over-year.

(9:45 a.m. ET) U.S. Chicago PMI for February.

(10 a.m. ET) U.S. Conference Board Consumer Confidence Index for February.

Also: Alberta and B.C. budgets and Canada’s Capital Expenditures Survey for 2023.

Earnings include: Bank of Montreal; Bank of Nova Scotia; Canfor Corp.; First National Financial Corp.; George Weston Ltd.; Green Thumb Industries Inc.; Laurentian Bank of Canada; Target Corp.; Winpak Ltd.

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Wednesday March 1

China, Japan and Euro zone manufacturing PMI

(10 a.m. ET) U.S. ISM Manufacturing PMI for February.

(10 a.m. ET) U.S. construction spending for January.

Also: Canadian and U.S. auto sales for February.

Earnings include: Capital Power Corp.; Descartes Systems Group Inc.; Kinaxis Inc.; Lowe’s Companies Inc.; National Bank of Canada; Royal Bank of Canada; Salesforce Inc.; Tamarack Valley Energy Ltd.; Tricon Capital Group Inc.

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Thursday March 2

Japan capital spending and consumer confidence

Euro zone CPI and jobless rate

(8:30 a.m. ET) U.S. initial jobless claims for week of Feb. 25. Estimate is 197,000, up 5,000 from the previous week.

(8:30 a.m. ET) U.S. productivity for Q4. The Street expects an annualized rate rise of 2.6 per cent with unit labour costs up 1.4 per cent.

Earnings include: AltaGas Ltd.; Atco Ltd.; Broadcom Inc.; Canadian Natural Resources Ltd.; Canadian Utilities Ltd.; Canadian Western Bank; Chartwell Retirement Residences; Costco Wholesale Corp.; Crescent Point Energy Corp.; Curaleaf Holdings Inc.; E-L Financial Corp. Ltd.; Freehold Royalties Ltd.; Parkland Fuel Corp.; Secure Energy Services Inc.; Storage Vault Canada Inc.; Toronto-Dominion Bank

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Friday March 3

China, Japan and Euro zone services PMI

Germany trade surplus

(8:30 a.m. ET) Canadian labour productivity for Q4. Estimate is flat from Q3.

(8:30 a.m. ET) Canadian building permits for January. Estimate is a month-over-month increase of 1.0 per cent.

(10 a.m. ET) U.S. ISM Services PMI for February.

Earnings include: SNC-Lavalin Group Inc.

TD Bank Group TD-T +0.49%increase says it has received all of the regulatory approvals required under its deal to buy U.S. investment bank Cowen Inc.

The bank expects to close the acquisition on March 1, subject to other customary closing conditions.

TD announced its deal to buy Cowen in a transaction valued at US$1.3-billion in August 2022.

It has said the acquisition will help TD Securities accelerate its long-term growth strategy in the U.S.

Cowen chair and CEO Jeffrey Solomon is expected join the senior leadership of TD Securities once the deal closes.

The Canadian bank is still working to secure regulatory approval for its US$13.4-billion deal to take over Tennessee-based First Horizon Corp.

Canadian Imperial Bank of Commerce CM-T +2.74%increase reported lower first-quarter profit but beat analysts’ estimates as the lender set aside fewer loan loss reserves and benefited from a boost in trading activity.

CIBC earned $432-million or 39 cents per share, in the three months that ended Jan. 31. That compared with $1.9-billion or $2.01 per share, in the same quarter last year.

Adjusted to exclude certain items, including a provision for a lawsuit with a New York hedge fund, the bank said it earned $1.94 per share. That beat the $1.73 per share analysts expected, according to Refinitiv.

The bank kept its quarterly dividend unchanged at 85 cents per share.

CIBC is the first major Canadian bank to report earnings for the fiscal first quarter. The rest of the Big Six banks release financial results next week.

In the quarter, CIBC set aside $295-million in provisions for credit losses – the funds banks set aside to cover loans that may default. That was lower than analysts anticipated and included $36-million against loans that are still being repaid, based on models that use economic forecasting to predict future losses. In the same quarter last year, CIBC had recorded $75-million in provisions.

Total revenue rose 8 per cent in the quarter, to $5.9-billion. But expenses ticked higher to $4.5-billion, which the bank said was driven by higher compensation for staff and strategic investments.

“We have clear momentum in attracting and deepening client relationships, a resilient capital position, and strong risk management and credit quality,” chief executive officer Victor Dodig said in a statement.

Profit from Canadian personal and small business banking was $589-million, down 14 per cent from a year earlier, largely on higher provision for credit losses, as well as expenses related to the bank’s acquisitions of the Costco credit card portfolio in Canada and employee compensation. But loan balances were up 8 per cent year over year.

The Canadian commercial and wealth management division generated $469-million of profit, up a slight 2 per cent as higher revenue and lower expenses were offset by bigger loan loss provisions. Commercial loan balances increased by 14 per cent from a year earlier.

Capital markets posted $612-million of profit, rising 13 per cent as activity in its global markets and direct financial services businesses offset a slower investment banking quarter.

Profit from the bank’s U.S. arm fell to $201-million as the unit set aside more money for potential bad loans.

CIBC took a previously-announced legal provision of $1.17-billion after a U.S. court found the bank liable for losses incurred by a New York hedge fund in debt deals related to the 2008 U.S. housing crisis. Last week, the lender said that it agreed to pay US$770-million Cerberus Capital Management LP, less than the amount it had set aside. CIBC said that the difference will be reflected in the bank’s second-quarter financial results.