Toronto Stocks Unchanged; Bank of Montreal Slides on Higher 1Q Credit Loss Provisions

By Adriano Marchese

Toronto stocks were near flat on Tuesday at midday, as Canadian bank stocks come into focus with earnings kicking off.

Bank of Nova Scotia reported quarterly earnings that topped analyst expectations while Bank of Montreal fell short of forecasts with higher loan-loss reserves and weakness in its capital markets business.

In the session, most sectors were trending higher led by health care, consumer discretionary, communication services. Financial and industrials were modestly lower, while the remaining sectors saw little change.

Canada's S&P/TSX Composite Index edged 0.02% lower, to 21320.41, and the blue-chip S&P/TSX 60 was 0.16% lower, to 1286.87.

Bank of Montreal shares were down 3.3%, to 122.62 Canadian dollars (US$90.79), after the bank reported first-quarter earnings jumped on a year earlier despite a sharp rise in its credit-loss provision, though revenue growth fell short of market expectations.

Other market movers:

Bank of Nova Scotia shares rose by 3.2%, to C$65.88, after logging stronger-than-expected first-quarter earnings despite a higher provision for credit losses. The bank's profit was boosted by growth in both its Canadian and international banking operations.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 27, 2024 12:19 ET (17:19 GMT)

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