(MENAFN- Baystreet.ca)
Bank Of Montreal Posts Fiscal Q3 Earnings Miss Bank of Montreal (BMO) has missed analysts' forecasts for its fiscal third quarter earnings due to higher loan loss provisions and the acquisition of U.S. lender Bank of the West.
BMO, as Bank of Montreal is commonly known, reportedincome of $1.45 billion, which was up 6% from $1.37 billion a year earlier.
Earnings per share came in at $2.78 for the quarter, which was below the consenforecast of analysts who expected earnings per share of $3.13.
The bank's revenue for the quarter increased 30% to $7.92 billion from $6.09 billion a year ago.
Bank of Montreal finalized its $16.3 billion purchase of Bank of the West a month before Silicon Valley Bank collapsed in March of this year, an event that led to chaos in the U.S. regional banking sector.
Additionally, Bank of Montreal, which is Canada's third biggest bank, set aside $492 million to cover loans that could potentially turn bad, nearly 30% more than analysts had forecast.
Finally, BMO said it paid $162 million in severance costs during its fiscal Q3 ended July 31. The lender dismissed staff at its BMO Capital Markets unit in response to a slowdown in deals.
Bank of Montreal's stock has declined 11% over the last 12 months to trade at $114.07 per share.
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