BMO Financial Group, National Bank report higher Q2 profits

Photo: The Canadian Press

BMO Financial Group raised its dividend as it reported a profit of $1.87 billion in its latest quarter, up from $1.03 billion a year earlier. Bank of Montreal signage is pictured in the financial district in Toronto, Friday, Sept. 8, 2023. THE CANADIAN PRESS/Andrew Lahodynskyj

BMO Financial Group raised its dividend as it reported a profit of $1.87 billion in its latest quarter, up from $1.03 billion a year earlier.

The bank said Wednesday it will now pay a quarterly dividend of $1.55 per share, up four cents from $1.51 per share.

The increased payment to shareholders came as BMO says its profit amounted to $2.36 per diluted share for the quarter ended April 30, up from $1.26 per diluted share a year earlier.

Revenue totalled $7.97 billion, up from $7.79 billion in the same quarter last year.

BMO's provision for credit losses for the quarter amounted to $705 million, down from $1.02 billion a year ago when it took an initial provision of $705 million related to the loan portfolio at Bank of the West, which it acquired last year.

On an adjusted basis, BMO says it earned $2.59 per diluted share, down from an adjusted profit of $2.89 per diluted share in the same quarter last year.

"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," BMO chief executive Darryl White said in a statement.

"We've delivered on our commitments with expenses down, compared with last year and last quarter."

Analysts on average had expected a profit of $2.77 per share, according to LSEG Data & Analytics.

BMO's Canadian personal and commercial banking business earned $872 million in the quarter, up from $819 million in the same quarter last year, while the bank's U.S. personal and commercial banking operations earned $543 million, down from $731 million.

The bank's wealth management business earned $320 million, an increase from $240 million a year earlier. BMO's capital markets business earned $459 million, up from $370 million.

BMO's corporate services segment reported a loss of $328 million in its second quarter compared with a loss of $1.13 billion in the same quarter last year.

National Bank of Canada reported a second-quarter profit of $906 million, up from $832 million a year earlier, and raised its dividend.

The Montreal-based bank said Wednesday it will now pay a quarterly dividend of $1.10 per share, an increase of four cents.

The increased payment to shareholders came as National Bank says its profit amounted to $2.54 per diluted share for the quarter ended April 30, up from $2.34 per diluted share in the same quarter last year.

Revenue totalled $2.75 billion, up from $2.45 billion a year earlier, while the bank's provision for credit losses amounted to $138 million, up from $85 million in the same quarter last year.

On an adjusted basis, National Bank says it earned $2.54 per diluted share, up from an adjusted profit of $2.34 per diluted share a year ago.

Analysts on average had expected a profit of $2.45 per share, according to LSEG Data & Analytics.

"National Bank generated strong financial results for the second quarter of 2024, reflecting the disciplined execution of our strategy across business segments and the diversified earnings power of the bank," National Bank chief executive Laurent Ferreira said in a statement.

"In what remains an uncertain macroeconomic environment, we are committed to maintaining our prudent approach to capital, credit, and costs and to generating long-term value for our shareholders."

National Bank said its personal and commercial business earned $311 million in its latest quarter, down from $320 million in the same quarter last year as it faced higher provisions for credit losses.

The bank's wealth management operations earned $205 million, up from $178 million in the second quarter of 2023, while its financial markets business earned $322 million in the quarter, up from $268 million a year earlier.

National Bank's U.S. specialty finance and international business earned $163 million in its latest quarter, up from $128 million in the same quarter last year.

The bank's "other" segment reported a loss of $95 million in its latest quarter compared with a loss of $62 million a year ago.