Bank of Montreal is the first Canadian lender to report results for the third quarter, a period in which the nation’s six-biggest banks are expected to see an average profit decline of 30 per cent, according to the average estimates of seven analysts. Bank of Montreal’s 21 per cent earnings drop may give investors an indication of how the pandemic continues to cause havoc for the banks.
Compared with rivals, Bank of Montreal set aside the least for souring loans in the second quarter, with provisions measured as a percentage of loans. That ratio was 0.89 per cent in the third quarter, compared with 0.94 per cent in the second and 0.28 per cent a year earlier. Bank of Montreal, which has consumer-banking operations in Canada and the U.S., typically earns more from its domestic operations, though Chief Executive Officer Darryl White has been pushing for more growth from its southern neighbour. Profit at the Canadian division fell 51 per cent from a year earlier, while in the U.S. it declined 29 per cent to $263 million, as loan-loss provisions surged from a year earlier in both regions.
The bank’s BMO Capital Markets unit was sideswiped in the second quarter by surging provisions that rivalled those in other divisions and losses from its worst trading day in more than a decade. The division regained profitability in the quarter, with earnings rising 36 per cent to $426 million a year earlier, amid an increase in trading and higher investment-banking fees.
Source: Loan Digest (loandigest.net)
Extra interest for we customers
So you shall share profits then?
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: nationalpost - 🏆 10. / 80 Read more »
Source: Sportsnet - 🏆 57. / 59 Read more »
Source: globeandmail - 🏆 5. / 92 Read more »
Source: HuffPostCanada - 🏆 61. / 53 Read more »
Source: nationalpost - 🏆 10. / 80 Read more »
Source: Sportsnet - 🏆 57. / 59 Read more »