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Bank of Montreal (NYSE:BMO) stock slipped some in Thursday trading after the bank issued mixed Q3 results and increased its quarterly dividend by 3%. BMO shares fell 0.6% in midday trading.
Strength in U.S. Personal & Commercial Banking helped to offset weakness in Capital Markets and Wealth Management during the quarter.
Q4 adjusted EPS of C$3.04 (US$2.26), missing the C$3.05 consensus, dropped from C$3.09 in Q3 and C$3.33 in the year-ago quarter.
Adjusted revenue, net of CCPB, was C$6.91B (US$5.14B), exceeding the C$6.85B consensus. That’s up from C$6.63B in the previous quarter and C$6.48B in the year-ago quarter.
“Very good revenue performance was driven by robust, high-quality growth in loans and deposits and expanding net interest margins, all underpinned by our leading risk management approach,” said CEO Darryl White.
However, looking ahead, “the economic environment remains uncertain, with inflation and higher interest rates expected to slow the economy in the near term,” he added. The company will continue to manage capital and resources to grow its businesses and support customers, “while finalizing preparations for the natural next step in our North American growth strategy, the approval, closing and integration of Bank of the West.”
Average net loans and acceptances of C$553.3B climbed from C$523.8B in Q3; average customer deposits increased to C$537.1B from C$516.7B in the previous quarter.
Q4 provision for credit losses of C$226M increased from C$136M in the prior quarter and a recovery of C$126M in Q4 2021.
Q4 net interest income of C$3.77B dropped from C$4.20B in Q3 and edged up from C$3.76B in Q4 2021.
Noninterest expense climbed to C$4.78B from C$3.86B in the prior quarter and from C$3.80B in the year-ago quarter.
Adjusted return on equity was 12.9%, down from 13.85 in the prior quarter and from 16.5% a year ago.
BMO (BMO) increased its Q1 2023 dividend to C$1.43 from C$1.39 in the prior quarter.
Canadian Personal & Commercial Banking adjusted net income of C$917M fell from C$965M in Q3 and C$933M in Q4 2021.
U.S. P&C Banking adjusted net income was C$662M vs. C$569M in the prior quarter and C$515M in the year-ago quarter.
BMO Wealth Management adjusted net income of C$298M fell from C$325M in the prior quarter and from C$349M in the year-ago quarter.
BMO Capital Markets adjusted net income of C$363M rose from C$266M in Q3 and dropped from C$536M in Q4 2021.
Earlier, Bank of Montreal (BMO) non-GAAP EPS of C$3.04 misses by C$0.01, revenue of C$10.57B beats by C$3.65B.
(Except for the headline, this story has not been edited by PostX News and is published from a syndicated feed.)