BMO boosts quarterly dividend as it reports second-quarter profit

BMO Monetary Group raised its dividend because it reported a second-quarter revenue of $4.76 billion.

The financial institution mentioned Wednesday it should now pay a quarterly dividend of $1.39 per share, up six cents from $1.33 per share.

The elevated fee to shareholders got here as BMO’s second-quarter revenue amounted to $7.13 per diluted share, up from a revenue of $1.30 billion or $1.91 per diluted share a yr in the past.

Income within the quarter totalled $9.32 billion, up from $6.08 billion in the identical quarter final yr, whereas the financial institution’s provision for credit score losses amounted to $50 million in contrast with $60 million a yr in the past.

On an adjusted foundation, BMO says it earned $3.23 per diluted share, up from an adjusted revenue of $3.13 per diluted share a yr in the past.

Analysts on common had anticipated an adjusted revenue of $3.21 per share, in keeping with monetary markets knowledge agency Refinitiv.

“We continued to ship good monetary efficiency this quarter, pushed by broad-based buyer mortgage progress and robust credit score high quality in our North American P&C companies, and strong ends in our market delicate companies even amid more difficult circumstances,” BMO chief govt Darryl White mentioned in a press release.

“With constant and disciplined execution of our technique, we proceed to ship on our dedication to constructive working leverage, whereas investing to develop our income and drive our digital-first agenda.”

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The financial institution mentioned its Canadian private and industrial banking enterprise earned $940 million in internet earnings, up from $777 million in the identical quarter final yr, whereas its U.S. private and industrial banking operations earned $588 million, up from $538 million a yr in the past.

BMO’s wealth administration enterprise earned $314 million, down from $322 million a yr earlier, whereas BMO Capital Markets earned $448 million, in contrast with $558 million a yr in the past.

The financial institution’s company companies arm earned $2.47 billion within the newest quarter in contrast with a lack of $892 million a yr in the past because the financial institution recorded increased income from truthful worth administration actions associated to the introduced acquisition of Financial institution of the West and decrease bills because of the write down of goodwill associated to the sale of its EMEA asset administration enterprise a yr in the past.