BMO beats profit estimates on boost in capital markets, U.S. division
Bank of Montreal reported a second-quarter profit of $2.6 billion, exceeding analysts' expectations. The bank's capital markets business and its U.S. division contributed significantly to this growth. BMO also raised its quarterly dividend and set targets to improve profitability in its U.S. operations.
- ▪BMO earned $2.6 billion, or $3.53 per share, in the second quarter, a 34 percent increase from the previous year.
- ▪The bank's U.S. division, which accounts for 40 percent of its earnings, is currently underperforming with a return on equity of 8.6 percent.
- ▪BMO set aside $739 million in provisions for credit losses, which was lower than analysts expected.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountBank of Montreal BMO-T reported higher second-quarter profit that topped analysts’ estimates on a boost from its capital markets business and its division in the United States. BMO earned $2.6-billion, or $3.53 per share, in the three months that ended April 30, up 34 per cent from the same quarter last year. Adjusted to exclude certain items, the bank said it earned $3.67 per share. That beat the $3.41 per share analysts expected, according to data from Bloomberg. In March, BMO unveiled its new strategy to revive its U.S. business and boost its return on equity – a closely watched measure of profitability. In 2024, BMO set a goal of improving its ROE to 15 per cent by the end of 2027.The U.S.
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