TORONTO - BMO Financial Group (NYSE:BMO) reported a second-quarter adjusted EPS of Cdn$2.59, falling short of the analyst consensus of Cdn$2.77. The company's revenue for the quarter was Cdn$7.97 billion, which also did not meet the expected Cdn$8.07 billion consensus estimate.
In a comparative analysis with the same period last year, BMO's net income showed a substantial increase from Cdn$1.029 billion to Cdn$1.866 billion. However, the adjusted net income for the second quarter decreased from last year's Cdn$2.186 billion to Cdn$2.033 billion. This decline in adjusted net income reflects a YoY decrease in adjusted EPS from Cdn$2.89 to Cdn$2.59.
Darryl White, Chief Executive Officer of BMO Financial Group, commented on the results, "This quarter, we achieved strong pre-provision, pre-tax earnings growth and positive operating leverage, driven by continued momentum in Canadian personal and commercial banking and strengthening performance in our Capital Markets and wealth businesses." He also highlighted the bank's expense management and balance sheet strength, with a CET1 ratio above 13%.
BMO's provision for credit losses was Cdn$705 million, down from the reported Cdn$1,023 million in the prior year. The adjusted provision for credit losses was Cdn$318 million in the previous year, indicating a more substantial provision this year. The bank's CET1 ratio improved YoY from 12.2% to 13.1%.
The bank declared a quarterly dividend of Cdn$1.55 per common share, which is a 5% increase from the prior year and a 3% increase from the previous quarter.
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