BMO Financial Group reports first-quarter profit down from year ago
TORONTO –
BMO Financial Group reported a first-quarter revenue of $247 million, down from $2.93 billion in the identical quarter a 12 months earlier, because it took a one-time cost associated to its acquisition of Bank of the West.
The financial institution mentioned Tuesday its revenue amounted to 30 cents per share for the quarter ended Jan. 31 in contrast with a revenue of $4.43 per diluted share a 12 months earlier.
Revenue totalled $6.47 billion, down from $7.72 billion, whereas provisions for credit score losses amounted to $217 million in contrast with a restoration of $99 million a 12 months earlier.
BMO’s newest outcomes included a pre-tax lack of $2.01 billion associated to the administration of the influence of rate of interest adjustments between the announcement and shutting of its buy of Bank of the West on its truthful worth and goodwill. It accomplished the deal on Feb. 1.
On an adjusted foundation, BMO says it earned $3.22 per diluted share for its first quarter, down from an adjusted revenue of $3.89 per diluted share in the identical quarter final 12 months.
Analysts on common had anticipated a revenue of $3.16 per share, in line with these polled by monetary markets information agency Refinitiv.
“We had a very good start to the year, with continued strong operating performance in our Canadian and U.S. personal and commercial businesses and improving momentum in BMO Capital Markets, benefiting from our strategic investments in talent and technology,” BMO chief government Darryl White mentioned in an announcement.
BMO mentioned its Canadian private and industrial banking business earned $980 million in its newest quarter, down from $1.00 billion in the identical quarter final 12 months because it confronted larger bills and a better provision for credit score losses.
The financial institution’s U.S. private and industrial banking operations earned $698 million, up from $681 million a 12 months in the past, helped by a stronger U.S. greenback.
Meanwhile, BMO’s wealth administration division earned $277 million down from $315 million a 12 months in the past.
BMO mentioned its capital markets operations earned $503 million, down from $705 million a 12 months in the past, because of market situations, leading to decrease funding and company banking income and world markets income, in addition to larger bills and a decrease restoration of the supply for credit score losses.
The financial institution’s company providers section, which included the Bank of the West cost, reported a lack of $2.21 billion in contrast with a revenue of $228 million a 12 months earlier.
This report by The Canadian Press was first printed Feb. 28, 2023.
