Bank of Montreal Posts Profit Rise -- Update
February 25 2020 - 11:11AM
Dow Jones News
By Robb M. Stewart and Vipal Monga
Bank of Montreal logged a 5.4% rise in its fiscal first-quarter
profit thanks in part to a lift in revenue and a solid period for
Canadian loan and deposit growth and its capital markets arm.
The bank, however, set aside a higher provision for credit
losses.
Bank of Montreal's U.S. arm recorded higher loss provisions for
commercial borrowers in energy and the trucking industry, which is
showing signs of weakness, executives said.
The Canadian bank, which owns Chicago-based BMO Harris Bank,
reported a quarterly net income of 1.59 billion Canadian dollars
($1.2 billion), or C$2.37 a share, up from C$1.51 billion, or
C$2.28, a year earlier. On an adjusted basis, it posted earnings of
C$2.41 a share.
Total provisions for credit losses were C$349 million for the
quarter, more than double the C$137 million recorded a year
earlier. .
Credit loss provisions in the U.S. personal and commercial bank
rose to $113 million in the first quarter, compared with $5 million
a year earlier. A weak transportation sector accounted for a large
part of the increase, the bank said.
The bank's chief risk officer, Patrick Cronin, called the
quarter "an anomaly," and said the bank expects credit loss
provisions to fall in the second quarter.
Overall, net interest income for the first quarter was higher at
C$3.39 billion from C$3.17 billion a year ago, while noninterest
revenue was up at C$3.36 billion from C$3.35 billion a year
earlier.
Revenue for the quarter increased to C$6.75 billion from C$6.52
billion, the bank said.
Write to Robb M. Stewart at robb.stewart@wsj.com and Vipal Monga
at vipal.monga@wsj.com
(END) Dow Jones Newswires
February 25, 2020 10:56 ET (15:56 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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