Bank of Montreal (BMO) has announced a rise in net profit and revenue for the third quarter. The Canadian financial institution reported a net income of 1.45 billion Canadian dollars ($1.07 billion) or C$1.97 per share, compared to C$1.37 billion or C$1.95 per share in the same period last year.
Adjusted Earnings and Revenue
The bank’s adjusted earnings were C$2.78 per share, compared to C$3.09 per share in the prior-year quarter. Analysts had expected a rise to C$3.13 per share, according to FactSet. Moreover, BMO’s revenue increased from C$6.1 billion to C$7.93 billion.
Provision for Credit Losses
BMO also noted a rise in its provision for credit losses, which is the amount of money set aside by the bank to cover bad or uncollected debt. The provision for credit losses increased from C$136 million to C$492 million.
Common Equity Tier 1 Capital Ratio
The common equity tier 1 capital ratio, a measure of a bank’s core capital compared with its riskier assets such as loans and mortgages, was 12.3% as of the third quarter, down from 15.8% in the same period last year.
Despite these changes, Chief Executive Officer Darryl White praised the bank’s positive performance. He highlighted “record revenue in Canadian personal and commercial banking and contribution from Bank of the West” as key drivers of good preprovision, pretax growth in the quarter. White also emphasized that BMO’s capital and liquidity positions remained strong.
For more information, please contact Bank of Montreal directly.