By Matt Scuffham
TORONTO (Reuters) - Canadian lenders Bank of Nova Scotia and Bank of Montreal reported better-than-expected quarterly earnings, helped by resilient performances at domestic businesses and overseas growth.
Rivals Royal Bank of Canada and Canadian Imperial Bank of Commerce have also recently reported earnings that beat analyst expectations as worries have eased over Canada's housing market and stalling talks to renegotiate the North American Free Trade Agreement.
Scotiabank, Canada's third-biggest lender, reported earnings per share of C$1.86 for the first quarter, up from C$1.57 a year earlier. Analysts had expected C$1.68 per share, Thomson Reuters I/B/E/S data showed.
The bank reported net income of C$1.1 billion ($867 million) in the quarter through Jan. 31, up 12 percent from a year ago, as profit margins improved and as less funds were set aside to cover bad loans. Net income at its international business surged 16 percent to C$667 million.
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Scotiabank has focused its international growth strategy on the Pacific Alliance, a Latin American trading bloc comprising Mexico, Peru, Chile and Columbia, where it saw loan growth of 10 percent or more during the period.
Bank of Montreal, Canada's fourth-biggest lender, reported earnings per share excluding one-off items of C$2.12 per share in the quarter through Jan. 31, down 7 percent from a year earlier when it benefited from a gain on the sale of a business in the United States. Analysts had on average forecast earnings of C$2.06 per share, Thomson Reuters I/B/E/S data showed.
BMO's U.S. personal & commercial business reported net income, excluding one-off items, of C$321 million, up 23 percent from a year ago.
($1 = 1.2684 Canadian dollars)
(Editing by Bernadette Baum)
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