BMO Financial Group (NYSE:BMO) reported a robust increase in third-quarter profits on Tuesday, with net income climbing 25% to C$2.33 billion, up from C$1.87 billion in the same period last year.
Adjusted earnings per share came in at C$3.23, comfortably surpassing analysts’ expectations of C$2.96. Revenue for the quarter reached C$8.99 billion, above the consensus estimate of C$8.86 billion.
The bank’s strong results were supported by solid revenue growth and improvements in credit quality. Provisions for credit losses fell to C$797 million from C$906 million in the prior year, reflecting favorable economic conditions and effective portfolio management.
“BMO delivered another quarter of strong earnings growth, with solid revenue performance and good expense management,” said Darryl White, Chief Executive Officer. “Disciplined execution against each of our ROE rebuild strategies is driving tangible results through consistent positive operating leverage, improving credit performance and strengthening profitability, especially across our U.S. businesses.”
The bank’s U.S. operations posted notable gains, with net income surging 51% to C$709 million. BMO’s Wealth Management segment also performed strongly, with net income up 20% to C$436 million.
BMO maintained its quarterly dividend at C$1.63 per common share, marking a 5% increase from the prior year. The bank also announced plans for a new normal course issuer bid to repurchase and cancel up to 30 million common shares, subject to regulatory approval.
The Common Equity Tier 1 ratio stood at 13.5% at the end of the quarter, up from 13.0% a year earlier, underscoring a robust capital position to support future growth.
BMO Financial Group stock price
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