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The results come as investor confidence has deteriorated in markets amid high volatility triggered by U.S. banking turmoil and a relentless rate-hiking cycle.
BMO, which completed its acquisition of Bank of the West in February, however, reported a rise in second-quarter profit as higher interest rates shored up its net interest income.
Adjusted income from Scotiabank’s Canadian banking segment fell 10% while that of BMO’s fell 8%, reflecting higher provisions for credit losses.
Provisions for credit losses jumped to C$709 million from C$219 million, due to economic uncertainty and challenging market conditions in Chile and Colombia amid rising inflation, Scotiabank said.
BMO said adjusted provision for credit losses was C$318 million at the end of the second quarter, compared with C$50 million a year ago.
BMO’s net income, excluding one-off items, rose to C$2.22 billion ($1.65 billion), or C$2.93 per share, for the three months ended April 30, compared with C$2.19 billion, or C$3.23 a share
For Scotiabank, it fell to C$2.17 billion ($1.62 billion), or C$1.7 a share, from C$2.77 billion, or C$2.18 a share, a year earlier.
($1 = 1.3372 Canadian dollars)
