Bank of Montreal (BMO) has kicked off the
Canadian reporting season with a strong set of results; first
quarter net income of C$1.1bn ($1.12bn) increased by 34%
year-on-year.
On an underlying basis, net income rose by 19%
to C$972m for the three months to 31 January.
On a less positive note, net income declined
by 6.7% year-on-year to C$446m at BMO’s Canada-based Personal &
Commercial (P&C) banking unit.
BMO’s P&C unit in the US posted first
quarter net income of C$135m; underlying net income at the division
increased by C$93m to C$152m with the acquired Marshall &
Ilsley unit contributing $89m.
BMO’s overall net interest margin increased by
27 basis points year over year to 2.05%. On an adjusted basis, net
interest margin increased by 6 basis points to 1.85%.
In Canada, BMO has increased its distribution
network by a net 14 outlets to 922 branches in the past year.
It has also expanded its video conferencing
service to over 50 of its Canadian branches.
In the first quarter in the US, BMO rebranded
237 legacy locations in Illinois and Northwest Indiana as BMO
Harris Bank.
BMO’s US-based distribution network has more than doubled in the
past year to 675 branches following the Marshall & Ilsley
deal.
Bill Downe, BMO CEO said:
“BMO produced record results for the quarter. Each of our
businesses is well-positioned and our balance sheet is strong – a
source of confidence for our customers.
“The integration of Marshall & Ilsley is on track.”
