Manulife Financial Corp., Canada’s largest insurer, said first-quarter profit dropped 56 percent on charges related to equity markets and interest rates, and as insurance sales in Asia and Canada declined.
Bank of Montreal has spent 28 years trying to make inroads in the U.S. Midwest. The efforts of Canada’s fourth-largest lender are starting to pay off, thanks to its C$4.1 billion ($3.98 billion) takeover of Marshall & Ilsley Corp. in Wisconsin.
Toronto-Dominion Bank’s agreement to buy Bank of America Corp.’s credit-card business in Canada caps a $20 billion buying spree for Canadian lenders taking advantage of their relative strength to pick up assets from U.S. firms.
Canadian lenders including Royal Bank of Canada and Bank of Montreal may report lower revenue from investment banking in the fourth quarter as capital markets activity slows amid the European debt crisis.
Canadian banks are underperforming global counterparts by the most in a year as record consumer debt and a housing market that’s vulnerable to a correction weakens their earnings prospects and risks a credit downgrade.