Bank of Montreal (CSE:BMO) has posted modest gains in net income and earnings in the latest quarer, driven by its Canadian personal and commercial banking divisions, although provisions for bad debts have risen sharply.
The Canadian financial institution said net income in the financial third quarter to July 31, 2023, increased 5.8% to C$1.45 billion from C$1.37 billion the year prior, or C$1.97 per share, up slightly from C$1.95 before.
Revenue rose to C$7.93 billion from C$6.1 billion while provision for credit losses more than trebled to C$492 million from C$136 million.
“We continue to deliver solid financial results reflecting the strength, diversity and active management of our businesses in an evolving environment. Record revenue in Canadian Personal and Commercial Banking and contribution from Bank of the West drove good pre-provision, pre-tax growth this quarter, and our capital and liquidity position remains strong,” said Darryl White, chief executive officer.
The bank's tier 1 capital ratio deteriorated to 12.3% from 15.8% a year earlier while the return on equity also fell to 8.3% from 8.8%.
"We’re confident in the power of our integrated North American franchise and our strategy to help our clients make real financial progress," White said.