BMO's Wealth Net Income Rises In Latest Quarter

Tom Burroughes

25 August 2020

The wealth management arm of Toronto-listed BMO Financial Group today reported net income of C$341 million in the three months to July 31, rising by 37 per cent on a year earlier.

BMO’s Traditional Wealth business reported net income of C$271 million, an increase of 20 per cent, and adjusted net income was C$279 million, rising by 19 per cent, primarily driven by lower expenses and higher revenue, partially offset by higher provisions for credit losses.

For the group as a whole, it logged net income of C$1.232 billion, down from C$1.557 billion a year earlier. Revenues rose to C$1.718 billion from C$6.666 billion. Total provision for credit losses rose sharply to C$1.054 billion from C$306 million, reflecting expected rising problems stemming from the global pandemic. For the year to date, credit loss provisions were C$2,521 billion, compared with C$619 million a year earlier.

The Canadian bank had a Common Equity Tier 1 ratio – a common international measure of capital buffer – of 11.6 per cent.