Bank of Montreal reported a smaller profit in its fourth quarter as declines from its wealth management and capital-markets businesses weighed on its results.
Net income attributable to shareholders fell 8.7% to 1.23 billion Canadian dollars ($972.7 million), or C$1.81 a share, compared with C$1.34 billion, or C$2.02 a share, a year ago.
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Adjusted net income fell 6.2% to C$1.31 billion, or C$1.94 a share. Excluding insurance claims, it earned C$2.11 a share. Analysts polled by Thomson Reuters were predicting adjusted earnings of C$1.98 a share.
BMO also said that net income was hurt by higher insurance claims from recent hurricanes that hit the U.S.
Net income for the company's capital-markets division fell 17% to C$326 million because of increased costs and a higher credit-loss provision along with a decline in revenue from corporate and investment banking.
Net income from wealth management fell 38% to C$172 million.
The company's Canadian personal and commercial banking business was a bright spot in its latest quarter as adjusted net income rose 6.3% to C$625 million. Meanwhile adjusted net income from its parallel U.S. unit fell 3.3% to C$291 million. BMO attributed the drop to a weaker U.S. dollar.
Net interest income at the company rose 1.5% to C$2.54 billion. Revenue increased 7.2% to C$5.66 billion. Noninterest expenses rose 1.4% to C$3.37 billion.
BMO also upped its credit-loss provision by 20% to C$208 million.
Shares in the company were flat in premarket trading.
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(END) Dow Jones Newswires
December 05, 2017 08:44 ET (13:44 GMT)