On Tuesday, the Bank of Montreal (BOM) reported a fourth-quarter kick-off for Canadian lenders, along with a lower profit than expected due to results in its capital markets unit, and sending lower stock during the early trade.
As Canada’s 4th largest bank, BOM’s net income was reported at 1.07 billion Canadian dollars or 941.57 US dollars, equivalent to C$1. 56 per share during the fourth quarter that ended October 31. Last year, its share was at C$1.60 per share or C$1.07 billion. Adjusted earnings were posted at C$1. 63 per share, while C$1. 68 based on analysts’ expectations.
According to John Aiken, an analyst at Barclays Capital, BMO has shown progress within the United States retail, a terrible quarter in capital markets, flat in domestic retail earnings, and noise in wealth management, besides a doubtfully low quality misses.
The fourth quarter ended in October 31, rather than December 31 for Canadian banks, which is the case of the majority of companies within the country. This week, top Canadian banks will report their fourth quarter results.
Company shares dropped to 1.4% to C$82. 14 during the early trade. The earnings missed was partially offset its decision in increasing its dividend by 3%, while renewing its plan on share buyback. The company improved its quarterly dividend to 80 cents from 2 cents per share.
Company revenue jumped to C$4. 34 billion. Along with its personal and commercial units, company net income rose to 14% to C$514 million, while revenue jumped to 7%. Its net income at its U.S. division, jumped 54 million dollars to 152 million dollars.
Its wealth management unit’s overall net income was C$226 million; while its capital market division’s total net income dropped 12%.