BMO - Bank of Montreal Q4 earnings rise Q/Q driven by strength in corporate banking

2023-12-01 11:23:30 ET

Bank of Montreal ( NYSE: BMO ) edged up on Friday after its fiscal Q4 adjusted earnings rose from its last quarter, but were down from the year-ago quarter, and a little shy of the Wall Street consensus.

"Driven by record revenue and ongoing momentum in Canadian Personal and Commercial Banking and the contribution of Bank of the West, we delivered strong performance in a challenging economic backdrop," said CEO Darryl White.

Shares in the company were up 1.53% at 11:19 am ET.

Adjusted EPS for the fourth quarter was C$2.81, as compared to $2.78 in Q3, and C$3.04 in Q4 2022.

The company saw higher revenue in both global market and investment and corporate banking, which was partially offset by higher expenses and higher provision for credit losses, as compared to last year.

The company also raised its quarterly dividend by C$0.04 to C$1.51 per share.

U.S. Personal and Commercial adjusted net income was C$740 million vs C$78 million in Q4 2022. The impact of the stronger U.S. dollar increased net income by 1%.

BMO Wealth Management adjusted net income was C$263 million, a decrease of C$35 million as compared to last year.

BMO Capital Markets adjusted net income was C$492 million, an increase of C$129 million or 36% as compared to the same period last year.

BMO's Common Equity Tier 1 (CET1) Ratio was 12.5% as at October 31, 2023, an increase from 12.3% at the end of the third quarter of 2023,

Total provision for credit losses rose to C$446 million, compared with a provision of C$226 million in the prior year, but down as compared to C$492M it reported last quarter.

Adjusted return of equity of 11.7% vs 11.7% in Q3 and 12.9% in Q4 2022.

Canadian Personal & Commercial adjusted net income was C$966 million, an increase of C$49 million or 5%, as compared to Q4 2022.

Revenue, net of CCPB C$8.2B vs C$7.9B in Q3 and C$10.9B in Q4 022.

Net interest income of C$4.9B vs C$4.9B in Q3 and C$3.7B in Q4 last year.

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