Bank of Montreal Q2 2019 underlying net income is up by 4% year-on-year to C$1.52bn boosted by strong US earnings.
On a reported basis, Bank of Montreal Q2 2019 net income is up by 20% to C$1.49bn.
On the other hand, the results for the quarter ending 30 April just miss analyst forecasts.
The big five Canadian banks have all now reported their second quarter results.
In summary, RBC and Toronto Dominion results are ahead of forecasts. Bank of Montreal joins CIBC and Scotiabank in just missing analyst estimates.
Bank of Montreal Q2 2019 highlights
The bank’s US Personal and Commercial unit reports net income of $417m on an adjusted basis, up by 16% y-o-y.
Average loans rise by 12% powered by a 15% rise in commercial loans. Retail loans inch up by 2% y-o-y.
Meantime, average deposits are ahead by 13% with retail deposits especially strong, up by 14%.
But less positive metrics include a 16 basis points drop in the net interest margin to 3.61%.
Adjusted and reported net income both rise by 5% y-o-y at Bank of Montreal’s Canadian Personal and Commercial unit.
Average loans up rise by 6% year-on-year with average deposits also ahead by 8% y-o-y.
The net interest margin rises by 2 basis points y-o-y to 2.61%.
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Bank of Montreal Q2 2019: provisions +10%
Other less positive group metrics include a 10% rise in provisions for credit losses to C$176m.
Bank of Montreal ends the second quarter with 899 branches in Canada, down a net 23 outlets y-o-y.
In the US, the bank operates 570 branches, down a net 3 units from a year ago.
Return on equity (ROE) is 13.6%, up from 12.6% in the prior year, and adjusted ROE is 13.9% from 14.9%.
Notably, the Bank of Montreal dividend is increased by 3% from the preceding quarter and by 7% y-o-y.
For the year to date the Bank of Montreal share price is up by 15.3%.
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