Bank of Montreal (BMO,BMO.TO), first of the six big Canadian banks to report financial results, reported Tuesday a profit for the third quarter that increased 38 percent from last year, reflecting a 17 percent revenue growth amid contribution for the acquired U.S. lender Marshall & Ilsley.
Results were boosted by strong operational results at U.S. personal & commercial banking group, partially offset by the performance of BMO Capital Markets. The company raised its quarterly dividend by 3 percent.
"BMO has reported strong quarterly financial results. Our business continues to deliver consistent and attractive profitability within a sound risk framework and the growth we are experiencing remains consistent with our strategy," President and CEO Bill Downe said in a statement.
BMO noted that it remains well capitalized, with Basel II common equity ratio remaining strong at 10.31 percent, and a Basel II Tier 1 Capital Ratio of 12.40 percent at July 31, 2012.
The Montreal, Canada-based company reported net income of C$951 million or C$1.42 per share for the third quarter, higher than C$690 million or C$1.09 per share in the prior-year quarter.
Excluding items, adjusted net income for the quarter was C$994 billion or C$1.49 per share, compared to C$838 million or C$1.34 per share in the year-ago quarter.
On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of C$1.39 per share for the quarter. Analysts' estimates typically exclude one-time items.
BMO completed the acquisition of Marshall & Ilsley Corp. in July 2011, which has contributed C$117 million to net income and C$165 million to adjusted net income for the quarter.
Total revenues for the quarter rose 16.8 percent to C$3.88 billion from C$3.32 billion in the same quarter last year, and adjusted revenues grew 9 percent to $3.68 billion from last year. Eight Wall Street analysts had a consensus revenue estimate of C$3.78 billion for the quarter.
Canadian personal & commercial banking group's net income for the quarter grew 2.4 percent to C$453 million, and U.S. personal & commercial banking net income increased 42.7 percent to C$129 million from last year.
Private Client Group net income was C$109 million, up 5.7 percent from a year ago, while BMO Capital Markets net income declined 14.1 percent to C$232 million from the prior year.
"Overall, each of our businesses is delivering against a high standard of customer experience and is on track to finish the year with strong performance in a highly competitive environment," Downe added.
The provision for credit losses for the third quarter totaled C$237 million, up 2.7 percent from the year-ago quarter.
Assets under management and administration grew by about C$14 billion from a year ago to C$445 billion as more new client assets were added.
Separately, the company's board of directors declared a 3 percent increase in quarterly dividend on its common stock to C$0.72 per share, payable on November 28 to shareholders of record on November 1, 2012.
BMO closed Monday's regular trading session at $58.21, down $0.10 on a volume of 0.29 million shares. On the Toronto Stock Exchange, BMO.TO closed at C$57.0, down C$0.17 on a volume of 1.33 million shares.
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