Bank of Montreal announced Tuesday it is amending its previously disclosed regulatory capital ratios for the first three quarters of 2016 after a review resulted in an increase in its risk-weighted asset (RWA) calculations.
The revisions stem from a review of certain components of its Basel I risk-weighted assets. “We determined that a correction should be made to certain components of our Basel I calculation resulting in an increase to RWA, due to the application of the floor,” the Toronto-based bank says in a news release.
BMO revised its previously reported third quarter common equity Tier 1 (CET1) ratio from 10.5% to 10.0%. Its CET1 ratio for the second quarter was cut from 10.0% to 9.7%. The reported first quarter ratio was trimmed 10.1% to 10.0%.
Apart from the changes to the regulatory capital ratios, the bank says that there is no change to its net income and shareholders’ equity, and “no change to the risk of the business.”
The bank is slated to report fourth quarter earnings on Dec. 6.
Photo copyright: Bloomberg