Bank of Montreal reported third-quarter adjusted earnings per share of Cdn$3.96, exceeding analyst expectations of Cdn$3.74 by 6%, while revenue reached Cdn$9.9 billion against a consensus estimate of Cdn$9.7 billion.
Adjusted net income rose 19% year-over-year to Cdn$2.86 billion, while reported net income declined 25% to Cdn$1.75 billion, or Cdn$2.38 per share, after booking a Cdn$962 million after-tax charge tied to the planned sale of its Transportation Finance and Vendor Finance units.
The bank’s capital markets segment delivered the strongest performance, with net income up 46% to Cdn$645 million, driven by higher revenue across Global Markets and Investment and Corporate Banking. Canadian personal and commercial banking net income increased 16% to Cdn$980 million, while U.S. banking net income rose 13% to Cdn$868 million.
Credit quality improved as provisions for credit losses fell to Cdn$722 million from Cdn$797 million a year earlier. The bank’s Common Equity Tier 1 ratio stood at 13.0%, down from 13.5% in the prior-year period.
BMO declared a fourth-quarter common share dividend of Cdn$1.71, a 5% increase from the prior year, and repurchased 3.8 million shares for cancellation during the quarter at an average price of Cdn$239.37 per share.
CEO Darryl White said the results reflected "disciplined execution against the commitments made at our March Investor Day to elevate ROE and accelerate growth."
