Bank of Montreal misses analysts’ estimates with higher second-quarter profit

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Bank of Montreal misses analysts’ estimates with higher second-quarter profit
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Sets aside more money for loans that could default; raises quarterly dividend by 4 cents

reported higher second-quarter profit but missed analysts’ estimates as the lender set aside more money for loans that could default.

“We’ve delivered on our commitments with expenses down, compared with last year and last quarter,” BMO chief executive officer Darryl White said in a statement. “Our balance sheet strength is evident in a CET1 ratio above 13 per cent, robust customer deposit growth and appropriate provisioning for the credit environment, which continues to be impacted by prolonged high interest rates and a slowing economy.

Profit from Canadian personal and commercial banking was $872-million, up 6 per cent from a year earlier, on higher net interest income and non-interest revenue, offset slightly by higher expenses and provisions.

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