Canadian banks say trade tensions with the U.S. are manageable amid earnings reports

Canada's six largest banks have begun publishing third-quarter earnings, with Bank of Montreal and Scotiabank filing first, and the remaining institutions reporting later in the week. In conference calls, Scotiabank chief executive Scott Thomson described the trade volatility with the United States as "manageable" and pointed to strong job growth, healthy fiscal capacity backed by oil revenues, and the prime minister's agenda as supportive factors.

Bank of Montreal chief executive Darryl White echoed this view, emphasizing that any adverse effects are likely to be offset through various measures. Both leaders also suggested the current tensions could accelerate efforts to reduce inter-provincial trade barriers and diversify trade relationships. BMO noted that roughly 40 % of its assets are already in the United States following its acquisition of Bank of the West. Market reaction was positive, with Scotiabank shares climbing up to seven percent and BMO shares gaining about one percent.