Market Overview

Bank of Montreal Posts Downbeat Q4 Profit, Lifts Dividend


Bank of Montreal (NYSE: BMO) reported downbeat fourth-quarter earnings and raised its dividend by 3%.

The bank's quarterly net income came in at C$1.07 billion ($941.57 million), or C$1.56 per share, versus C$1.07 billion, or C$1.60 per share, in the year-ago period. Its adjusted earnings rose 1% to C$1.63 per share, versus analysts' estimates of C$1.68 per share.

Its total revenue gained 5% to $4,340 million, while adjusted revenue rose 8% to $4,340 million. Excluding the impact of the stronger US dollar, the bank's adjusted revenue surged 6%.

At its Canadian personal and commercial segment, net income climbed 14% y/y to C$524 million, while net income at its US division surged $54 million to $152 million. Net income at its wealth management segment declined to C$226 million from C$311 million, while net income at its capital markets segment slipped 12% to C$191 million. Corporate Services reported a net loss of $39 million, versus a year-ago net loss of $14 million.

The bank's net interest income gained 3% y/y to $2,178 million, while adjusted net interest income climbed 9% to $2,178 million.

BMO's non-interest revenue rose 7% to $2,162 million, while adjusted non-interest revenue climbed 8% to $2,162 million in the quarter.

Its overall net interest margin shrank by 9 basis points y/y to 1.60%, while adjusted net interest margin came in unchanged at 1.60%.

Non-interest expense rose 12% y/y to $2,887 million, while adjusted non-interest expense gained 14% to $2,834 million.

The bank lifted its quarterly dividend by 3% to 80 Canadian cents per share. The bank also announced its plans to buy back up to 15 million shares.

"BMO's fourth quarter results conclude a year in which the bank delivered $4.5 billion in adjusted net income with adjusted earnings per share up 6% from last year," said Bill Downe, Chief Executive Officer, BMO Financial Group. "This performance reflects a well-executed customer-focused strategy and the momentum we have demonstrated over a number of consecutive quarters.”

Bank of Montreal shares fell 0.79% to close at $73.11 yesterday.

Posted-In: profitEarnings News Dividends


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