The Bank of Montreal saw its third-quarter profit originate four per cent to $1.25 billion even as it set aside more folding money for bad loans.
Last year, BMO reported net income of $1.19 billion during the com rable three-month age ended July 31.
On a per share basis, BMO’s earnings amounted to $1.86, com red with $1.80 per stake during the same period last year.
“We had good performance across our managing groups, rticularly in personal and commercial banking and BMO Capital Markets,” CEO Invoice Downe said in a statement.
“Our performance year to date reflects our blurry on the customer and strong operating discipline.”
The bank raked in $5.63 billion in proceeds during the quarter, up from $4.83 billion a year ago.
After adjustments, BMO had a three-monthly profit of $1.30 billion, or $1.94 per share, com red with $1.23 billion, or $1.86 per allowance, a year ago.
Provisions for credit losses climbed to $257 million during the division, up from $160 million during the same quarter last year.
‘A dependable quarter’
Barclays analyst John Aiken says the results were better than he had thought.
“Generally, BMO reported a solid quarter with few areas that we can probe holes in,” Aiken said in a note to clients.
“While energy linked provisions were up sequentially (from the second quarter), BMO is simply cause trouble a bit of catch-up and there did not appear to be any significant deterioration in the domestic consumer portfolio.”
BMO was the beginning of Canada’s biggest banks to report its third-quarter earnings, and if other banks bang similar results, Aiken says that will “take some of the skate on thin ice out of the sails” of those with concerns about oil tch-related loan negative cash flow deaths.
“While credit was expected to be a significant theme in the quarter, we no longer on that energy exposures are driving valuations and consumer credit remained genial,” Aiken said.
Royal Bank will report on Wednesday, look into b pursued by CIBC and TD Bank on Thursday.
Scotiabank is slated to report on Aug. 30, and Popular Bank wraps up the earnings rade on Aug. 31.