Bank Of Montreal Reports 40% Drop In Net Income

Bank of Montreal (BMO) reported that net income for its fiscal third quarter ended July 31 fell
40% from a year earlier.

Specifically, the lender said that its net income amounted to $1.37 billion, down 40% from $2.28
billion in the same period of 2021.

Bank of Montreal largely blamed the steep decline on costs associated with its $16.3 billion U.S.
takeover of Bank of the West, including $694 million U.S. caused by increased interest rates
since the deal was first announced last December.

The bank said it earned $3.09 per share in the quarter, which was below the $3.15 that had
been expected by analysts who cover the company.

Bank of Montreal also reported that profits from its capital markets unit dropped 53% year-over-
year to $262 million amid ongoing stock market turmoil. The lender set aside $136 million for
loan loss provisions, nearly triple the amount it put aside in the previous quarter.

Bank of Montreal closed out earnings season for Canada’s main financial institutions. Year-to-
date, its stock is down 9% and trading at $127.77 per share.