Bank of Montreal reported third-quarter adjusted earnings per share of C$3.96, exceeding analyst expectations of C$3.74 and rising 22% from C$3.23 a year earlier. Revenue totaled C$9.9 billion, up 11% from C$9.0 billion in the same period last year and above the C$9.7 billion consensus estimate.
Net income, adjusted for after-tax charges, reached C$2.86 billion, a 19% increase from C$2.40 billion in the prior-year quarter. Reported net income was C$1.75 billion, or C$2.38 per share, down 25% year-over-year due to a C$962 million after-tax charge tied to the sale of its Transportation Finance and Vendor Finance units.
Capital markets performance led the results, with net income rising 46% to C$645 million. Canadian personal and commercial banking net income increased 16% to C$980 million, while U.S. banking net income climbed 13% to C$868 million. Provision for credit losses declined to C$722 million from C$797 million a year prior.
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 dividend of C$1.71 per common share, a 5% increase from the previous year, and repurchased 3.8 million shares at an average price of C$239.37.
CEO Darryl White attributed the results to disciplined execution against commitments made at the March Investor Day to enhance return on equity and accelerate growth.
