Update: Bank of Montreal's Fiscal Q1 Adjusted Profit Falls, Revenue Rises; Declares Dividend; National Bank Takes First Look
09:54 AM EST, 02/27/2024 (MT Newswires) -- Bank of Montreal (BMO.TO) on Tuesday reported fiscal first-quarter adjusted net income of $1.89 billion, or $2.56 per diluted share, down from $2.16 billion, or $3.06 per diluted share, a year earlier.
Analysts polled by Capital IQ expected $2.96.
Revenue for the quarter ended Jan. 31, 2024, was $7.67 billion, up from $5.10 billion a year earlier.
Analysts surveyed by Capital IQ expected $8.37 billion.
The provision for credit losses for fiscal Q1 was $627 million, wider than $217 million a year earlier. BMO's Common Equity Tier 1 Ratio was 12.8% as at Jan. 31, 2024, up 12.5% at the end of the fourth quarter of 2023, the bank said.
The adjusted return on equity was 10.6%, down from 12.9% a year earlier.
The company's board declared a quarterly dividend of $1.51 per share on paid-up common shares of Bank of Montreal for the second quarter of fiscal year 2024, unchanged from the previous quarter.
The dividend on the common shares is payable on May 28 to shareholders of record on April 29.
Meanwhile, National Bank said Bank of Montreal's fiscal Q1 miss was driven by mainly by lower revenues and higher provision for credit losses, offset by lower expenses.
"While some of the revenue miss seems unusual, especially in corporate, other components such as the RV & Marine business sales are at the new run rate," the analysts said.
The analysts noted that higher-than-expected loan losses were mainly driven by higher-performing provision additions.
National Bank has an outperform rating and a price target of C$141.
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