Bank has reported its third quarter financial results showing increased revenue and earnings
BMO Financial Group posted its latest quarterly results early Tuesday showing a 1% increase in both reported and adjusted net income year-over-year.
The group’s net revenue of $5,779 million was up 5% compared to the third quarter of 2018, reported net income was $1,557 million ($2.34 per share) with adjusted net income of $1,582 million ($2.38 per share).
The dividend of $1.03 remained unchanged from the second quarter of 2019 but is up 7% year-over-year.
"BMO continued to deliver strong operating results this quarter demonstrating the resilience of our diversified North American platform, with adjusted earnings per share of $2.38, good revenue growth of 5% and positive operating leverage,” said Darryl White, Chief Executive Officer, BMO Financial Group. “Our Canadian and U.S. Personal and Commercial banking businesses together delivered 9% growth in pre-provision pre-tax profit contribution with good balance momentum. Capital Markets continues to perform well, with record revenue in Investment and Corporate Banking. While provisions for credit losses increased this quarter from very low levels, overall credit quality remains strong."
Return on equity (ROE) was 13.2%, compared with 14.7% in 2018 year, while adjusted ROE was 13.5% compared with 15.0% in 2018.
BMO Wealth Management posted reported net income of $249 million compared with $291 million and adjusted net income of $257 million compared with $301 million in 2018. Adjusted net income excludes the amortization of acquisition-related intangible assets.
Traditional wealth reported net income of $225 million increased $23 million or 11% and adjusted net income of $233 million increased $21 million or 10% driven by higher revenue, partially offset by select investments in the business.
Insurance net income was $24 million compared with $89 million in the prior year, primarily due to lower reinsurance results and unfavourable market movements in the current year relative to favourable movements in the prior year.
Meanwhile, the Capital Markets business posted reported net income of $313 million, up 4%; while adjusted net income of $318 million was 5% higher than in 2018 year. Adjusted net income excludes the amortization of acquisition-related intangible assets and acquisition integration costs.
"We remain committed to our strategic priorities, including our focus on improving efficiency, which was below 60% on an adjusted basis this quarter, and growing our diversified U.S. businesses, which contributed 34% of the bank's year-to-date adjusted earnings. Our capital position remains strong at 11.4% and we are taking actions to continue to position our businesses for growth and sustainable long-term performance," concluded White.