BMO Financial Group (BMO) has reported a 78% decline in its fiscal second quarter profit as the bank raised its provisions to cover potential loan losses.
BMO, also known as Bank of Montreal, reported a fiscal Q2 profit of $1.06 billion or $1.30 per share for the quarter ended April 30. That’s down 78% from a profit of $4.76 billion or $7.13 per share a year earlier.
Revenue in the quarter totalled $8.44 billion, down 9% from $9.32 billion a year earlier.
Analysts who cover the bank had, on average, expected a profit of $3.19 per share, according to Refinitiv data.
The bank blamed the decline in profits on provisions set aside to cover potential loan losses, which amounted to $1.02 billion in fiscal Q2, up substantially from $50 million a year earlier.
In announcing its latest earnings, BMO also raised its quarterly dividend by 3%. The lender said it will now pay a quarterly dividend of $1.47 per share, up from $1.43 per share previously.
BMO’s stock has declined 12% in the last year to trade at $117.43 per share.
