Toronto –
BMO Financial Group reports first-quarter profit of $247 million, down from $2.93 billion in the year-ago quarter, due to one-time charges related to Bank of the West acquisition Did.
The bank said on Tuesday that earnings for the quarter ended Jan. 31 reached 30 cents per share.
While revenue declined from $7.72 billion to $6.47 billion, loan loss reserves reached $217 million, up from $99 million a year ago.
BMO’s latest results included a pre-tax loss of $2.01 billion related to managing the impact of interest rate fluctuations on fair value and goodwill from the announcement of the Bank of the West acquisition to its closing. The transaction closed on February 1st.
On an adjusted basis, BMO said it earned $3.22 per diluted share in the first quarter. This is down from adjusted earnings of $3.89 per diluted share in the same quarter last year.
On average, analysts expected earnings of $3.16 per share, according to a survey by financial market data firm Refinitiv.
BMO CEO Darryl White said, “Continued strong performance in personal and commercial businesses in Canada and the U.S., gaining momentum in BMO Capital Markets, benefiting from strategic investments in talent and technology. We got off to a very good start,” he said. in a statement.
Canadian personal and commercial banking revenues were $980 million in the most recent quarter, up from $1 billion in the same quarter last year, according to BMO. This was in the face of higher expenses and higher loan loss reserves.
The Bank’s US Personal and Commercial Banking operations earned $698 million, up from $681 million a year earlier, aided by a stronger dollar.
Meanwhile, BMO’s wealth management division was down $277 million from $315 million a year ago.
Capital Markets operations declined by $503 million from $705 million a year ago due to market conditions, resulting in lower Investments and Corporate Banking revenues and Global Markets revenues and higher expenses, according to BMO. , credit reserve recoveries declined. loss.
The Bank’s Business Services segment, which includes Bank of the West’s liability, reported a loss of $2.21 billion, compared with a profit of $228 million in the year-ago quarter.
This report by the Canadian Press was first published on February 28, 2023.
