TORONTO – BMO Financial Group reported a third-quarter profit of $1.87 billion as its provision for credit losses rose compared with a year ago.
The bank said Tuesday its net income amounted to $2.48 per diluted share for the quarter ended July 31 compared with a profit of $1.57 billion or $2.12 per diluted share a year earlier.
On an adjusted basis, BMO says it earned $2.64 per diluted share in its latest quarter, down from an adjusted profit of $2.94 per diluted share in the same quarter last year.
Revenue for the quarter totalled $8.19 billion, up from $8.05 billion in the same quarter a year ago.
BMO’s provision for credit losses amounted to $906 million for its third quarter, up from $492 million a year earlier.
Analysts on average had expected BMO to earn an adjusted profit of $2.76 per share for the quarter, according to to LSEG Data & Analytics.
“While the cyclical increase in credit costs has resulted in loan loss provisions above our historical range, performance has been supported by operating momentum across our diversified businesses,” BMO chief executive Darryl White said in a statement.
“With our strategic goals firmly in place, a strong balance sheet, robust capital and liquidity, we are well positioned to deliver sustainable returns to our shareholders.”
BMO said its Canadian personal and commercial banking business earned $914 million, up from $881 million in the same quarter last year, while its U.S. personal and commercial banking earned $470 million, down from $502 million a year ago.
The bank’s wealth management business earned $362 million, down from $396 million a year earlier.
BMO’s capital markets arm earned $389 million, up from $295 million in the same quarter last year.
The bank’s corporate services group reported a loss of $270 million compared with a loss of $509 million in its third quarter last year.
This report by The Canadian Press was first published Aug. 27, 2024.
Companies in this story: (TSX:BMO)