Shares of Bank of Montreal (BMO) declined 6.2% on the NYSE in response to weak third-quarter fiscal 2024 (ended July 31) results. Adjusted earnings per share of C$2.64 declined 10.2% year over year.A significant jump in provision for credit losses and lower net interest income (NII) primarily hurt the results. However, an increase in non-interest income, higher loans and deposit balance and lower expenses acted as a tailwind.After considering non-recurring items, net income was C$1.87 billion ($1.37 billion ...

Notably higher provisioning affected the bank's fundamentals.Investors weren't in a forgiving mood after digesting Bank of Montreal's (BMO -6.16%) latest news on Tuesday. After the north-of-our-border lender divulged its latest set of quarterly results, investors assertively traded out of the stock. When the smoke cleared, Bank of Montreal shares closed the day more than 6% lower; meanwhile, the S&P 500 index finished in positive territory, with a 0.2% gain.A miss on the bottom lineBank of Montreal's fiscal ...

Interim Consolidated Financial Statements Consolidated Statement of Income | (Unaudited) (Canadian $ in millions, except as noted) | | | | For the three months ended | | | | | For the nine months ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | July 31, | | April 30, | | July 31, | | July 31, | | July 31, | | | | 2024 | | 2024 | | 2023 | | 2024 | | 2023 | | Interest, Dividend and Fee Income | | | | | | | | | | | | Loans | $ | 10,269 | $ | 9,745 | $ | 9,130 | $ | 29,846 | $ ...

Financial Data and Key Metrics Changes - The company reported record pre-provision pre-tax earnings of $3.5 billion, an increase of 8% year-over-year, driven by revenue growth in Canadian Personal and Commercial Banking and stronger client activity [6][9] - Adjusted net income for Q3 was $2 billion, with earnings per share at $2.64, down from $2.94 last year, reflecting an 8% decrease [18][9] - The company achieved positive operating leverage of 5.2% for the quarter and 1.3% year-to-date [6][18] - The CET1 ratio remained strong at 13%, indicating a solid capital position [9][21] Business Line Data and Key Metrics Changes - Canadian Personal and Commercial Banking (P&C) reported record revenue of $2.9 billion, up 7% year-over-year, with pre-provision pre-tax earnings up 12% [9][21] - U.S. Personal and Commercial Banking (P&C) saw revenue growth over the last quarter, with positive operating leverage of 4.9% [11][22] - Wealth Management net income increased by 44% year-over-year, driven by growth in client assets and strong net sales in ETFs [12][24] - BMO Capital Markets achieved pre-provision pre-tax earnings of $625 million, bolstered by strong client activity in global markets and corporate banking [12][24] Market Data and Key Metrics Changes - The company experienced robust customer deposit growth, with average balances up 9% year-over-year [19] - In the U.S. market, loan and deposit growth is strengthening in Canada, while softer in the U.S., with continued client acquisition [11][22] - The company is seeing improvements in its Treasury Payment Solution business, receiving recognition for its digital banking experience [11][22] Company Strategy and Development Direction - The company is focused on executing strategic priorities and investing for growth, leveraging its strong balance sheet and capital to build lasting shareholder value [25] - The management emphasized the importance of maintaining a strong risk culture and effectively managing credit performance through the credit cycle [17][26] - The company is committed to its EMpower 2.0 initiative, aiming to support underserved communities with a commitment of over $40 billion [16] Management's Comments on Operating Environment and Future Outlook - Management noted that while credit costs have increased, they expect provisions to normalize by 2025 as economic conditions improve [8][26] - The anticipated easing of central bank rates is expected to support economic growth, although the timing of benefits may vary [8][26] - Management expressed confidence in returning to long-term average credit performance levels as the economic environment stabilizes [26][66] Other Important Information - The company has seen a significant increase in impaired provisions, with $906 million reported for the quarter, largely driven by specific client segments affected by high interest rates and economic uncertainty [27][28] - The company is closely monitoring sectors such as transportation and commercial real estate, which have shown signs of stabilization [29] Q&A Session Summary Question: What surprised you regarding impaired PCLs and their future outlook? - Management indicated that while the current environment is complex, retail losses have remained within expected ranges, and they anticipate a return to long-term averages by the end of fiscal 2025 [34][36] Question: Why is there no share buyback despite a strong capital level? - Management stated that uncertainties in the environment prevent a full green light for buybacks, emphasizing the need to maintain capital for future opportunities [40][42] Question: How does the bank approach large credit exposures? - Management clarified that many large losses are shared with other banks in syndicated facilities, and they are continuously refining their risk management practices [45][46] Question: What went wrong relative to peers regarding PCLs? - Management emphasized that their credit underwriting policies remain robust, and the current issues are not systemic but rather episodic events affecting specific accounts [51][52] Question: What is the outlook for credit performance in the coming quarters? - Management expects elevated credit provisions for the next couple of quarters, with a return to normalized levels thereafter, aligning with historical averages [66]

Key TakeawaysThe Bank of Montreal's third-quarter earnings fell short of analysts' estimates as profits declined across several segments, including personal and commercial banking in the U.S. and Canada.Overall, profits increased year-over-year despite lower revenue, as CEO Darryl White said the bank practiced "good cost discipline."The bank's shares moved lower in early trading Tuesday after the earnings report was released. Canada's Bank of Montreal (BMO) missed estimates for its third-quarter results Tue ...

BMO's Third Quarter 2024 Report to Shareholders, including the unaudited interim consolidated financial statements for the period ended July 31, 2024 are available online at www.bmo.com/investorrelations and at www.sedarplus.ca.Financial Results HighlightsThird Quarter 2024 compared with Third Quarter 2023:Net income of $1,865 million, compared with $1,565 million; adjusted net income1, 2 of $1,981 million, compared with $2,148 millionReported earnings per share (EPS)3 of $2.48, compared with $2.12; adjuste ...

Iryna Tolmachova/iStock Editorial via Getty Images Summary As Bank of Montreal (NYSE:BMO) gears up to release its fiscal Q3 earnings on August 27th, 2024, there's a lot of anticipation-and a bit of anxiety-among investors. BMO is expected to report $6bn in revenue for the quarter, and a lot of attention will also be on the bottom line. With Canada's economy teetering on the edge of a recession, everyone's eager to see how BMO is handling the pressures of rising interest rates and potential loan defaults. Th ...

Customers now earn new bonuses on everyday spend, including gas, electric vehicle charging, groceries, and higher earn on dining purchases. In addition to points on everyday spend, customers will continue to earn on hotel and airfare purchases at a new 2x points per dollar rate. CHICAGO, Aug. 6, 2024 /PRNewswire/ - BMO has launched its enhanced BMO Premium Rewards Credit Card with Mastercard designed to meet the everyday spending needs of its customers and help them make real financial progress. In addition ...

NEW YORK, July 8, 2024 Bank of Montreal (TSX:BMO)(NYSE:BMO) today announced that it intends to redeem all of the outstanding securities in each of the series set forth in the following table (collectively, the "Affected Securities"): * The table above provides, for each of the Affected Securities, which are identified by their names, a hyperlink to the relevant pricing supplement.  Hyperlinks to the applicable base prospectus and prospectus supplement are contained in such pricing supplements. Capitalized t ...

CINCINNATI, June 03, 2024 (GLOBE NEWSWIRE) -- Paycor HCM, Inc. (Nasdaq: PYCR) (“Paycor”), a leading provider of human capital management (HCM) software, today announced that the company will participate in the BMO Virtual Software Conference. The presentation is scheduled for Monday, June 10, 2024 at 11:30 am Eastern Time. The presentation will be webcast live and accessible for replay for a limited time under the "Events & Presentations" section of Paycor’s investor relations website at https://investors.p ...