Bank of Montreal (BMO: Quote,BMO.TO: Quote), first of the six big Canadian banks to report financial results, booked a profit for the second quarter that increased 27 percent from last year.
The results reflected lower provision for credit losses as well as 19 percent revenue growth amid contribution for the acquired U.S. lender Marshall & Ilsley Corp.
Results were boosted by strong operational results at U.S. personal & commercial banking group and Private client group.
"BMO produced strong financial results again in the second quarter. The consistent focus we have on customers and their success is underpinned by a strong, consistent brand and is grounded in the belief that a relationship bank is relevant to households and companies, as they manage their finances and improve their financial position," President and CEO Bill Downe said in a statement.
BMO noted that it remains well capitalized, with common equity ratio (based on Basel II) remaining strong at 9.90 percent, and a Basel II Tier 1 Capital Ratio of 11.97 percent at April 30, 2012.
The Montreal, Canada-based company reported net income of C$1.03 billion or C$1.51 per share for the second quarter, higher than C$813 million or C$1.32 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter increased to C$982 million or C$1.44 per share from C$770 million or C$1.25 per share in the year-ago quarter.
On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of C$1.36 per share for the quarter. Analysts' estimates typically exclude one-time items.
Total revenues for the quarter rose 19 percent to C$3.96 billion from C$3.33 billion in the same quarter last year, and adjusted revenues grew 15 percent to $3.73 billion from last year. Eight Wall Street analysts had a consensus revenue estimate of C$3.80 billion for the quarter.
Net interest income increased 25 percent from a year ago to C$2.12 billion.
Canadian personal & commercial banking group's net income for the quarter grew 7.8 percent to C$446 million, and U.S. personal & commercial banking net income more than doubled from last year.
"The integration of our U.S. banking platform is on track. The business has been materially strengthened with expanded access to existing and new regions, increased brand awareness and a better ability to compete in highly attractive markets," Downe added.
The provision for credit losses for the second quarter totaled C$195 million, down 34 percent from the year-ago quarter.
Separately, the company's board of directors declared a quarterly dividend on its common stock of C$0.70 per share.
BMO closed Wednesday's regular trading session at $54.10, down $0.62 on a volume of 0.72 million shares. In the past 52-week period, the stock has been trading in a range of $51.83 to $65.79.
On the Toronto Stock Exchange, BMO.TO closed at C$55.25, down C$0.46 on a volume of 1.30 million shares. The stock has been trading in a range of C$54.38 to C$62.20 in the past 52 weeks.
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by RTT Staff Writer
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