Alexandra Posadzki, The Canadian Press</span>
Published Wednesday, May 24, 2017 8:15AM EDT
TORONTO -- The Bank of Montreal (TSX:BMO) says its second-quarter net income grew by 28 per cent to $1.25 billion on higher profits from its wealth management and capital markets divisions.
The Toronto-based bank also says its quarterly dividend will rise by two cents to 90 cents per share, payable on Aug. 28. That represents an increase of five per cent, year-over-year.
"Earnings growth reflects the benefits and resilience of our diversified business model, with strong contributions from our wealth management and BMO capital markets businesses, and consistent continuing investment in technology and our employees," BMO's CEO Bill Downe said in a statement.
Overall revenue was $5.74 billion, up from $5.10 billion a year ago.
The bank's wealth management arm had $251 million of reported net income, up 86 per cent from a year ago, while its capital markets division grew its profit by 12 per cent year-over-year to $321 million.
BMO's Canadian personal and commercial banking segment had $531 million of reported net income, up one per cent from a year ago.
However, BMO's P&C business south of the border saw its net income decline by seven per cent from a year ago to $248 million, mainly due to higher provisions for credit losses.
Revenue from its U.S. division was also lower, but that decrease was mostly offset by reduced expenses.
"While there has been a moderation in loan and deposit growth in the United States reflective of slower than anticipated business activity in the first calendar quarter, we are well-positioned to continue to build on the strength of our U.S. franchise," Downe said.
BMO's net income was equal to $1.84 per share, up from $1.45 per share during the second quarter of 2016 when its net income was $973 million.
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