The Canadian personal and commercial banking (P&C) unit of BMO Financial Group has posted a net income of C$525m for the second quarter of fiscal year 2016, a rise of C$40m or 8% compared to the prior year.
Revenues increased C$67m or 4% from a year ago driven by higher balances across most products and increased non-interest revenue, partially offset by lower net interest margin.
The unit’s year-over-year loan growth was 5%, while deposit growth stood at 7%.
The bank’s US P&C unit reported a net income of C$267m, a surge of C$60m or 29% compared to the prior corresponding period.
Overall, the group reported a net income of C$973m for the second quarter of fiscal 2016, a fall of 3% from the year-ago quarter, owing to a C$132m after-tax restructuring charge.
BMO Financial Group CEO Bill Downe said: "BMO delivered good results in the second quarter with adjusted net income of $1.2 billion and adjusted EPS of $1.73, reflecting strong performance in our combined personal and commercial banking business which grew 14% from last year.
"Year-to-date adjusted net income and EPS were both up 7% driven by diversified loan and deposit growth, good revenue performance and a continued focus on expense control. Canadian and U.S. Personal and Commercial Banking and BMO Capital Markets had positive operating leverage and, in BMO Wealth Management, underlying business growth remained solid."
Meanwhile, the bank has announced that it will shed about 1,850 jobs, representing 4% of its workforce.
The bank said that the layoffs are the result of automation of some of its processes amidst increasing adoption of online banking by customers.