Bank of Montreal Profit Rises, Overcoming More Expenses -- Update

By Austen Hufford Features Dow Jones Newswires

Bank of Montreal reported a stronger profit as it lowered its provision for bad loans and benefited from growth in its Canadian personal- and commercial-banking unit and wealth-management segment.

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Still, the bank, which also operates as BMO Financial Group, said revenue fell in its latest quarter due to less active capital markets and lower levels of client activity.

Revenue at Bank of Montreal, one of Canada's largest banks, fell 3.1% to 5.46 billion Canadian dollars (about $4.38 billion) in its third quarter. Analysts polled by Thomson Reuters had expected C$5.31 billion.

Revenue net of certain insurance claims and changes in liabilities rose 5.5% from a year ago to C$5.21 billion. Expenses rose 6% to C$3.28 billion.

The total provision for credit losses was C$134 million, down from C$257 million in the same quarter last year.

The bank's chief executive, Bill Downe, will retire this fall after a decade of leading the company. He will be replaced by the bank's operating chief, Darryl White.

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Bank of Montreal posted net income of C$1.39 billion, or C$2.05 a share, up from a profit of C$1.25 billion, or C$1.86 a share, the year before. Adjusted to exclude certain items, the bank said it earned C$2.03 a share, compared with the C$2.00 a share analysts had expected.

Bank of Montreal shares fell 2% to C$90.59 in Tuesday trading and are down 6.2% so far this year.

Write to Austen Hufford at

(END) Dow Jones Newswires

August 29, 2017 11:44 ET (15:44 GMT)