Bank of Montreal posts lower quarterly profit as capital markets slump
2022.12.01 06:36
© Reuters. FILE PHOTO: A Bank of Montreal (BMO) logo is seen outside of a branch in Ottawa, Ontario, Canada, February 14, 2019. REUTERS/Chris Wattie/File Photo
(Reuters) – Canada’s Bank of Montreal posted a lower fourth-quarter profit on Thursday, as revenue from its capital markets business tumbled and the lender increased provisions for credit losses to brace for potential defaults in the face of a tepid economy.
Net income, excluding one-off items, fell to C$2.14 billion ($1.59 billion), or C$3.04 a share, in the three-month period ended Oct. 31, from C$2.23 billion, or C$3.33 a share, last year.
Analysts had estimated the company to report a profit of C$3.07 per share, according to data from Refinitiv IBES.
The Canadian lender had set aside provisions of $226 million in the reported quarter, compared with a release of $126 million last year.
Still, BMO recorded a 30% surge in profit from its U.S. personal and commercial business. Peers Royal Bank of Canada and National Bank of Canada (OTC:) posted a 5% and 13% jump, respectively, in their personal and commercial businesses on Wednesday.
Last month, BMO had also booked a charge of C$1.12 billion after a U.S. jury found its local unit liable for more than $550 million in damages in relation to a Ponzi scheme operated by a Minnesota businessman.
($1 = 1.3428 Canadian dollars)
