BMO Financial Group reports 25% surge in third quarter profit

TORONTO - On Tuesday, BMO Financial Group (NYSE:BMO) (TSX:BMO) reported a significant increase in third-quarter profits, with net income rising 25% to C$2.33 billion from C$1.87 billion in the same period last year.

The Canadian banking giant posted adjusted earnings per share of C$3.23, comfortably beating analyst expectations of C$2.96. Revenue for the quarter reached C$8.99 billion, exceeding the consensus estimate of C$8.86 billion.

BMO’s strong performance was driven by solid revenue growth and improved credit quality. The bank’s provision for credit losses decreased to C$797 million from C$906 million in the prior year, reflecting better economic conditions and portfolio management.

"BMO delivered another quarter of strong earnings growth, with solid revenue performance and good expense management," said Darryl White, Chief Executive Officer. "Disciplined execution against each of our ROE rebuild strategies is driving tangible results through consistent positive operating leverage, improving credit performance and strengthening profitability, especially across our U.S. businesses."

The bank’s U.S. operations showed particularly impressive results, with reported net income increasing 51% to C$709 million. BMO’s Wealth Management segment also performed well, with net income rising 20% to C$436 million.

BMO maintained its quarterly dividend at C$1.63 per common share, representing a 5% increase from the prior year. The bank also announced plans to establish a new normal course issuer bid to purchase for cancellation up to 30 million common shares, subject to regulatory approvals.

The bank’s Common Equity Tier 1 ratio stood at 13.5% at the end of the quarter, compared to 13.0% a year earlier, indicating a strong capital position to support future growth.

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