BMO Financial Group reports first-quarter profit down from year ago

TORONTO –

BMO Financial Group reported a first-quarter profit of $247 million, down from $2.93 billion in the same quarter a year earlier, as it took a one-time charge related to its acquisition of Bank of the West.

The bank said Tuesday its profit amounted to 30 cents per share for the quarter ended Jan. 31 compared with a profit of $4.43 per diluted share a year earlier.

Revenue totalled $6.47 billion, down from $7.72 billion, while provisions for credit losses amounted to $217 million compared with a recovery of $99 million a year earlier.

BMO’s latest results included a pre-tax loss of $2.01 billion related to the management of the impact of interest rate changes between the announcement and closing of its purchase of Bank of the West on its fair value and goodwill. It completed the deal on Feb. 1.

On an adjusted basis, BMO says it earned $3.22 per diluted share for its first quarter, down from an adjusted profit of $3.89 per diluted share in the same quarter last year.

Analysts on average had expected a profit of $3.16 per share, according to those polled by financial markets data firm Refinitiv.

“We had a very good start to the year, with continued strong operating performance in our Canadian and U.S. personal and commercial businesses and improving momentum in BMO Capital Markets, benefiting from our strategic investments in talent and technology,” BMO chief executive Darryl White said in a statement.

BMO said its Canadian personal and commercial banking business earned $980 million in its latest quarter, down from $1.00 billion in the same quarter last year as it faced higher expenses and a higher provision for credit losses.

The bank’s U.S. personal and commercial banking operations earned $698 million, up from $681 million a year ago, helped by a stronger U.S. dollar.

Meanwhile, BMO’s wealth management division earned $277 million down from $315 million a year ago.

BMO said its capital markets operations earned $503 million, down from $705 million a year ago, due to market conditions, resulting in lower investment and corporate banking revenue and global markets revenue, as well as higher expenses and a lower recovery of the provision for credit losses.

The bank’s corporate services segment, which included the Bank of the West charge, reported a loss of $2.21 billion compared with a profit of $228 million a year earlier.

This report by The Canadian Press was first published Feb. 28, 2023.