Published on 30 May 2024 on Zacks via Yahoo Finance

Bank of Montreal (BMO) Tanks 9.5% as Q2 Earnings Decline

Shares of Bank of Montreal BMO plunged 9.5% in response to its second-quarter fiscal 2024 (ended Apr 30) results. Adjusted earnings per share of C$2.59 declined 10.4% year over year.A significant jump in provision for credit losses and lower net interest income (NII) primarily hurt the results. However, increases in non-interest income, higher loans and deposit balance and slightly lower expenses acted as tailwinds.After considering non-recurring items, net income was C$1.87 billion ($1.38 billion), which surged 81.3% from the year-ago quarter.

Revenues Improve, Expenses Down

Total revenues (on an adjusted basis), net of insurance claims, commissions and changes in policy benefit liabilities (CCPB), were C$7.99 billion ($5.89 billion), up 2.5% year over year.NII declined 6.1% year over year to C$4.53 billion ($3.34 billion). On the other hand, non-interest income came in at C$3.46 billion ($2.55 billion), up 16.3%.Adjusted non-interest expenses decreased marginally to C$4.63 billion ($3.41 billion).The adjusted efficiency ratio (net of CCPB) was 58%, down from 59.1% as of Apr 30, 2023.Provision for credit losses (adjusted) was C$705 million ($519.5 million) in the reported quarter, up significantly from the year-ago quarter.