The Bank of Montreal (BMO) reported disappointing third-quarter earnings, falling short of analysts’ forecasts. The bank’s profits, totaling C$1.87 billion ($1.39 billion), missed expectations despite an increase from the previous year. Revenue also lagged, with total figures reaching C$8.19 billion. Net interest income (NII) was slightly below predictions, and provisions for credit losses (PCL) surged to C$906 million, up from C$496 million a year earlier.
Profit declines were evident across multiple divisions, including personal and commercial banking in both the U.S. and Canada, as well as wealth management. However, gains in global markets and investment activities helped mitigate some losses, driven by higher trading, underwriting, and advisory revenues, along with reduced expenses.
Despite the lower overall revenue, BMO achieved year-over-year profit growth, attributed to strong cost discipline and operational performance, according to CEO Darryl White. Following the earnings report, BMO’s shares dropped by 5.5% to $83.93, reflecting a 15% decline in value since the beginning of the year.
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