Bank of Montreal (NYSE:BMO) reported third-quarter adjusted earnings per share of C$3.96, a 22% increase from the previous year, with adjusted net income rising to a record C$2.9 billion. This performance was driven by broad revenue growth, lower credit provisions, and record pre-provision, pre-tax earnings of C$4.5 billion, marking a 13% increase. Reported net income stood at C$1.8 billion, impacted by a C$973 million goodwill charge related to divestitures.
The bank’s revenue rose 11% year-over-year, bolstered by increases in wealth-management fees, debt underwriting, and lending fees. Non-interest revenue grew 26%, while net interest income excluding markets increased 5%. BMO’s common equity tier 1 ratio remained steady at 13%, with upcoming sales of non-core U.S. branches expected to enhance this ratio by 50 basis points upon completion.
Overall, Canadian personal and commercial banking net income was up 15%, and U.S. banking saw a 9% increase in net income, with improving return on equity figures. Provisions for credit losses decreased to C$722 million, reflecting a decline in impaired provisions, suggesting stabilization in consumer credit risks.
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