By Adriano Marchese
Bank of Montreal on Wednesday reported a rise in second-quarter profit, benefiting from higher revenue.
For the period ended April 30, the Canadian financial institution said earnings per share were 7.13 Canadian dollars (US$5.56), up from C$1.91 a year earlier.
Net income was C$4.76 billion, up from C$1.30 billion, it said.
Adjusted earnings, which exclude the effects of the acquisition of Bank of the West and certain divestitures, were C$3.23 a share, slightly above analysts expectations of C$3.22 a share, taken from FactSet.
Return on equity rose to 34.5%, compared with 10.2%, while on an adjusted basis, ROE fell to 15.7% from 16.7%.
Common equity tier 1 ratio--a measure of a bank's financial strength--rose to 16.0% from 13.0%, it said.
The bank's provision for credit losses, an estimation of potential losses, fell to C$50 million from C$60 million, it said.
BMO's Canadian personal and commercial segment reported net income of C$940 million, an increase of 21%, while its wealth-management segment net income fell 4% to C$314 million.
Revenue rose to C$9.32 billion from C$6.08 billion, it said.
Chief Executive Darryl White said, "We continued to deliver good financial performance this quarter, driven by broad-based customer loan growth and strong credit quality in our North American P&C businesses, and solid results in our market sensitive businesses even amid more challenging conditions."
Write to Adriano Marchese at email@example.com
(END) Dow Jones Newswires
May 25, 2022 07:03 ET (11:03 GMT)Copyright (c) 2022 Dow Jones & Company, Inc.