Bank of Montreal (TSE:BMO), Canada’s fourth-largest lender, increased its quarterly dividend 2 percent after reporting fiscal-second-quarter profit that topped analysts’ estimates.
BMO declared a quarterly dividend of C$0.82 per share, up 0.0.2 from the previous quarter, the Toronto, Ontario-based company said in a statement today.
Net income fell to C$999 million, or C$1.49 per diluted share, for the quarter ended April 30, from C$1.08 billion, or C$1.60 per diluted share, for the year-earlier period. The company attributed the profit drop to a substantial restructuring charge of C$106 million during the period “to drive operational efficiencies.”
Adjusted earnings increased to C$1.71 per share, above the $.166 average estimate of 15 analysts polled by Capital IQ.
Revenue climbed to C$4.5 billion compared from C$4.4 billion a year ago.
“Our operating groups performed well, demonstrating the benefits of our advantaged business mix, which is diversified by geography and customer type,” said Bill Downe, BMO’s chief executive officer, in the statement.
“Looking ahead, with our consistent strategy and a deeply ingrained commitment to customers, we are confident in the opportunities for growth across the bank,” he said.
In its personal and commercial banking division, BMO reported an adjusted earnings increase of 8 percent to C$706 million.
The U.S. personal and commercial segment also grew its bottom line with adjusted net income rising 29 percent year-over-year to C$219 million.
The bank’s wealth management division, meanwhile, booked adjusted net income of C$265 million in the quarter compared to C$197 million a year ago and net income in BMO’s capital market business was C$296 million.
The rout in the price of crude oil hung over bank results earlier this year, out of worries that the depressed energy sector would drag down the Canadian economy.
But BMO reported that its provisions for credit losses was C$161 million in the second quarter, almost unchanged from the previous quarter and last year.