Bank of Montreal (TSX:BMO)(NYSE:BMO) was the first major Canadian bank to release its second quarter 2021 earnings. It continued to build on what was a strong first quarter as the domestic and global economy rebounds from the devastating COVID-19 pandemic. Shares of BMO rose 1.46% on the same day as the earnings release. The bank stock has increased 30% in 2021 as of close on May 26.
In Q2 2021, adjusted net income rose to $2.09 billion compared to $715 million in the prior year. Meanwhile, adjusted earnings per share hit $3.13 – up from $1.04 in Q2 2020. BMO’s Canadian Personal and Commercial Banking segment saw adjusted net earnings increase $402 million from the prior year to $765 million. It benefited from revenue growth of 9%.
BMO reported 57% growth in adjusted net income in its United States Personal and Commercial Banking segment to $547 million. Once again, the earnings bump was fueled by solid revenue growth and lower provisions for credit losses. Adjusted net income in BMO Wealth Management rose $200 million year-over-year to $353 million. Meanwhile, BMO Capital Markets adjusted earnings hit $570 million – up from a net loss of $68 million in Q2 2020.
Overall, it was a very strong quarter for the Montreal-based bank. The stock still possesses a favourable price-to-earnings ratio of 15. Meanwhile, it offers a quarterly dividend of $1.06 per share. That represents a 3.3% yield.
