Bank of Montreal rebounds after sequence of misses

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The Bank of Montreal topped analysts’ expectations within the first quarter after a sequence of misses because it reported higher profits from its enterprise within the United States in addition to its wealth administration and capital markets segments.

BMO’s internet earnings for the three-month interval ending Jan. 31 was $2.1 billion, up from $1.29 billion throughout the identical interval a yr in the past, leading to internet earnings per share of $2.83.

It earned $2.28 billion on an adjusted foundation, in comparison with $1.89 billion a yr in the past, leading to adjusted earnings per share of $3.04 in comparison with analysts’ expectations of $2.41 per share.

“We delivered robust first-quarter efficiency with broad-based income progress,” chief govt Darryl White mentioned in an announcement.

BMO failed to satisfy analysts’ expectations within the final quarter as a result of higher-than-expected provisions for credit score losses (PCL) — the amount of cash banks preserve apart to deal with probably dangerous loans. Its PCLs again then elevated to $1.5 billion within the earlier quarter, up from $446 million a yr earlier, however the financial institution’s chief threat officer mentioned BMO’s credit score deterioration had reached a excessive level.

The financial institution reported first-quarter PCLs of $1.01 billion, up from $627 million a yr in the past, however down from $1.5 billion within the fourth quarter.

White mentioned the decline in PCLs from the earlier quarter was anticipated.

“With the energy of our deep geographic and enterprise diversification, we’re well-positioned to compete and develop on this dynamic working atmosphere,” he mentioned.

Gabriel Dechaine, an analyst at National Bank of Canada, referred to as BMO’s outcomes a “nice rebound” quarter in a be aware on Tuesday.

Canada’s greatest banks are releasing their first-quarter earnings outcomes this week simply days earlier than U.S. President Donald Trump is predicted to impose tariffs on Canadian items within the U.S., a transfer that some economists say might set off a recession in Canada.

BMO introduced a second-quarter dividend of $1.59 per frequent share, which is unchanged from the earlier quarter.

• Email: nkarim@postmedia.com

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