The Canadian personal and commercial banking (P&C) arm of BMO Financial Group has posted net income of CAD614m ($489.1m) for the third quarter of 2017, an increase of 9% compared to CAD560m ($446m) in the corresponding quarter of 2016.
The group said that the rise in income was driven by higher balances across most products, increased non-interest revenue and lower provisions for credit losses.
The division’s revenue for the period ended 31 July 2017 stood at CAD1.85bn, up 5% from CAD1.77bn a year ago. Provision for credit losses at the unit slumped 18% year-on-year to CAD125m.
The bank’s US P&C arm reported net income of CAD278m for the third quarter of 2017, flat compared to the previous year. The unit’s adjusted net income, which excludes the amortisation of acquisition-related intangible assets, stood at CAD289m, as against CAD290m a year ago.
Overall, the banking group posted a net income of CAD1.38bn for the third quarter of 2017, an increase of 11% compared with CAD1.24bn in the year ago period.
BMO Financial Group CEO Bill Downe said: “BMO’s performance this quarter continues to demonstrate the strength of our differentiated operating model, delivering resilient earnings growth in an evolving environment, with adjusted earnings of $1.4 billion, up 6% from last year, and adjusted earnings per share of $2.03.
“Year-to-date, we delivered double-digit earnings growth with adjusted net income of $4.2 billion, driven by good underlying revenue growth, strong credit performance, and a focus on improving efficiency while making investments that strengthen customer relationships across all channels.”