Bank of Montreal outshone rival Bank of Nova Scotia on Tuesday, posting third-quarter earnings that came in ahead of market expectations, helped by growth in the United States.

Shares in Scotiabank, down 5 per cent since the start of the year, were 1.8-per-cent lower at 1 p.m. EDT. Shares in BMO, up 5 per cent so far this year, were down 0.25 per cent, with the broader market for Canadian banks 0.5-per-cent lower. .

BMO, Canada’s fourth-biggest lender, said earnings per share, excluding one-off items, jumped 16 per cent to $2.36 in the quarter ended July 31, compared with the average analyst forecast of $2.27, according to Thomson Reuters.

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Net income, excluding one-off items, at the bank’s U.S. business grew by 34 per cent, benefiting in part from tax changes. Net income, excluding one-off items, at its Canadian business rose 5 per cent.

Scotiabank, Canada’s third-biggest lender, reported a 5-per-cent increase in third-quarter earnings, in line with market expectations.

Earnings per share, excluding one-off items, rose to $1.76 in the quarter ended July 31, up from $1.68 a year ago. Analysts had on average forecast earnings per share of $1.75, according to Thomson Reuters.

Canadian Imperial Bank of Commerce analyst Robert Sedran said BMO had benefited from a strong U.S. performance and also highlighted its investment banking business, which lifted net income by 7 per cent. helped by stronger trading revenues.

In contrast, he said Scotiabank’s performance was unlikely to be greeted positively by the market after other Canadian banks exceeded expectations this quarter.

Royal Bank of Canada and CIBC both beat forecasts last week.

Scotiabank, which has the biggest overseas presence of Canada’s major banks, said its net income, excluding one-off items, rose to $2.26 billion during the period, from $2.12 billion in the year-ago quarter.

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The bank’s international business grew net income by 15 per cent, helped by loan growth of more than 10 per cent in the Pacific Alliance trading bloc, comprising Mexico, Peru, Chile and Colombia, where its international strategy is focused.

Speaking to reporters, Chief Executive Brian Porter said Monday’s announcement of a preliminary trade deal between the United States and Mexico was a “solid step in the right direction,” and he is hopeful a deal with Canada can be reached.

“This alleviates ambiguity in the market’s mind,” he said. “We look forward to the next piece of NAFTA being solved with Canada’s inclusion.”