Bank of Montreal shares fell almost 8% after the Canadian bank’s fiscal second quarter profits failed to meet Street expectations.
For the quarter ended April 30, the company’s adjusted net income fell to C$2.03 billion from $2.19 billion in the year-ago period.
On a per share basis, BMO earned C$2.59, down from C$2.89 for the same quarter in 2023 and estimates of C$2.77.
Weighing on BMO’s profits were higher-than-expected provisions for credit losses. The bank put aside $705 million, compared to the $563.3 million expected by analysts.
It also saw weakness in its US personal and commercial business during the quarter, with adjusted net income in this segment down 24% from the year-ago quarter at $612 million.
Bright spots were the company’s Wealth Management and Capital Markets segments.
Adjusted Wealth Management income grew 33% over the year-ago quarter to $322 million while Capital Markets adjusted net income grew 23% to $466 million.
BMO’s US-listed shares traded down 7.6% at about US$88.70, while its Canadian shares were 7.4% lower at C$121 late morning on Wednesday.