Banking stock under pressure: Bank of Montreal (NYSE: BMO)

Free $100 Forex No-Deposit Bonus

Bank of Montreal (NYSE: BMO) stock fell over 2.7% (as of 9:48 am GMT-5; Source: Google finance) post fourth quarter of FY 19. The company’s net income fell by 30% to $1.19 billion in the fourth quarter, due to a restructuring charge of $357 million related to severance and real estate costs. BMO Capital Markets has reported the adjusted net income of $280 million, compared to $309 million in the prior year. Corporate Services has reported the adjusted net loss was $94 million, compared to an adjusted net loss of $65 million in the prior year.

Net income has increased by 6% to $716 million in the unit, which is the bank’s biggest. Personal and commercial banking net income in the U.S. unit was up 6%. Net interest income increased to C$3.36 billion from $3.02 billion a year ago while noninterest revenue was C$2.72 billion, which fell down from C$2.88 billion a year earlier. BMO’s Common Equity Tier 1 (CET1) Ratio was 11.4% as at October 31, 2019, which was unchanged from the prior quarter. Adjusted ROE was 13.5%, compared with 14.5% in the prior year. Adjusted ROTCE was 15.7%, compared with 17.3% in the prior year.

BMO in the fourth quarter of FY 19 has reported the adjusted earnings per share of C$2.43, while adjusted revenue growth of 5 percent to C$5.75 in the fourth quarter of FY 19

Moreover, Canadian P&C has reported the adjusted net income of $716 million, an increase of 6% from the prior year. U.S. P&C has reported the adjusted net income was $404 million, an increase of 5% from the prior year. BMO Wealth Management has reported the adjusted net income of $301 million, an increase of $72 million or 31% from the prior year.

The bank has raised its dividend as it will now pay a quarterly dividend of $1.06 per share, up three cents from its previous rate.

Meanwhile, during the fourth quarter, the bank has launched a new digital lending solution, the first of its kind from a major Canadian financial institution.

Copyright © 2019. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.