Results boosted by one-time gains from hedging strategies related to its pending acquisition of Bank of the West and sale of its European asset management business
Bank of Montreal reported higher first-quarter profit helped by strong retail banking revenue in Canada and the U.S. and a busy quarter for capital markets.
Adjusted to exclude those items, BMO said it earned $2.6-billion, or $3.89 per share, while analysts expected adjusted earnings per share of $3.26 on average, according to Refinitiv.BMO also recovered $99-million in provisions for credit losses - the funds banks set aside to cover loans that may default. The bank released provisions that had previously been earmarked against loans that were still being repaid, citing “reduced uncertainty on future credit conditions.
In BMO’s U.S. retail arm, profit of $681-million increased by 18 per cent. Commercial lending, which is the unit’s strength, increased by 9 per cent from the same quarter last year. The bank has not yet closed its deal to buy Bank of the West, which will substantially expand its U.S. footprint. In wealth management, profit declined by 6 per cent to $315-billion after BMO sold its European asset management unit and its private banking business in Hong Kong and Singapore, reducing revenues.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of Nova Scotia beats expectations on mortgage and commercial loan growthBank of Nova Scotia beat market estimates for first\u002Dquarter profit on Tuesday, driven by strong mortgages and commercial loan growth
Read more »
Canadian banks can no longer do transactions with Russian Central BankEffective Monday, all Canadian financial institutions are prohibited from engaging in any transaction with the Russian Central Bank, Deputy Prime Minister and Finance Minister Chrystia Freeland has announced.
Read more »
Bank of Nova Scotia signs $1.3-billion deal to increase stake in Scotiabank ChileThe bank is acquiring a family-held 16.8-per-cent stake. Chile’s Said family
Read more »
Bank of Nova Scotia signs deal to increase stake in Scotiabank ChileThe purchase will increase Scotiabank’s stake in the Chilean business to 99.8%
Read more »
Bank of Nova Scotia beats expectations on mortgage and commercial loan growthBank of Nova Scotia beat market estimates for first\u002Dquarter profit on Tuesday, driven by strong mortgages and commercial loan growth
Read more »
No easy solution to Europe's skyrocketing energy costsWatch: RBC Capital Markets\u0027 Michael Tran speaks about geopolitical risks to the energy sector
Read more »