(RTTNews) - Tuesday, BMO Financial Group (BMO: News ,BMO.TO: News ) reported an increase in net income for the fourth quarter, on higher revenues and lower loan loss provisions. In another development, the company said it has agreed to buy the Diners Club North American franchise from Citigroup, a move which will immediately more than double BMO's overall Corporate Card business. BMO also declared a quarterly dividend of C$0.70 per share on paid-up common shares of Bank of Montreal for the first quarter of fiscal year 2010.

BMO Financial's net income for the fourth quarter available to commons share holders increased to C$609 million or C$1.11 per share from C$535 million or C$1.06 per share in the year-ago period.

The company's interest, dividend and fee income declined to C$2.30 billion from C$3.48 billion in the year-ago period. Interest expense for the quarter declined to C$860 million from C$2.07 billion in the year-ago period.

The company's net interest income increased to C$1.44 billion from C$1.40 billion in the year-ago period.

Provision for credit losses declined to C$386 million from C$465 million in the year-ago period.

Revenues for the quarter were C$2.989 billion, compared with C$2.813 billion in the year-ago quarter.
Net income for the company's P&C Canada segment increased 22% from the year-ago period. Net income in the P&C United States segment increased to US$23 million, up US$12 million from the year-ago period. Private Client Group or PCG net income increased by C$26 million or 32% from the same quarter a year-ago, while net income from BMC Capital markets was in line with the prior year's. However, the Corporate Services segment recorded a net loss of C$171 million during the quarter due to provisions for credit losses and due to low revenue.

Total non-interest revenue for the quarter was C$1.55 billion, compared with C$1.40 billion year-ago. The company's total non-interest expense for the quarter declined to C$1.77 billion from C$1.82 billion year-ago.

Total loans as on October 31 were C$162.09 billion, compared with C$179.35 billion at the end of the year-ago period. Total deposits at the end of the period were C$236.15 billion, compared with C$257.67 billion year-ago.

Bank of Montreal declared a quarterly dividend of C$0.70 per share on paid-up common shares of Bank of Montreal for the first quarter of fiscal year 2010, unchanged from the previous quarter and reflective of an annual dividend of C$2.80 per share.

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