The bank reported earnings of $671 million, or $1.29 per share, in the three months ended April 30. That is up from $651 million, or $1.25 a share, in the same period a year earlier.
BMO said last week it would record $680 million of commodities-related pretax trading losses over the first and second quarters.
Excluding the net impact of the commodities trading losses, net income was $761 million or $1.47 a share. On this basis, revenue grew 9.6% from a year ago, net income improved by $110 million, or 17%, and operating leverage improved 400 basis points.
Earnings increased 24% in Personal & Commercial (P&C) Canada as strong revenue growth significantly outpaced expense growth.
Broad-based revenue growth in BMO Capital Markets also outpaced expense growth by a wide margin as earnings grew 17% excluding the impact of the commodities losses.
Net income increased 5.2% in Private Client Group as it earned its second-highest earnings ever.
BMO said P&C U.S. earnings were relatively stable in a challenging economic and competitive environment.
“The commodities trading losses lowered what would otherwise have been good second quarter results for BMO, as P&C Canada delivered strong performance,” said Bill Downe, president and CEO of BMO Financial Group, in a release.
In a separate announcement, BMO left its quarterly dividend unchanged at 68¢ a share.
BMO earnings post slight rise in second quarter
Commodities trading losses lower what would otherwise have been good second quarter results
- By: IE Staff
- May 23, 2007 May 23, 2007
- 09:10