BMO Financial Group raised its quarterly dividend as its second-quarter profit fell compared with a year ago and its provisions for credit losses climbed higher.
The bank said Wednesday it will now pay a quarterly dividend of $1.47 per share, up from $1.43 per share.
The increased payment to shareholders came as BMO reported a profit of $1.06 billion of $1.30 per share for the quarter ended April 30, down from a profit of $4.76 billion or $7.13 per diluted share a year earlier.
Revenue totalled $8.44 billion, down from $9.32 billion in the same quarter last year, while the bank’s provision for credit losses amounted to $1.02 billion, up from $50 million a year earlier.
On an adjusted basis, BMO says it earned $2.93 per diluted share in its latest quarter, down from an adjusted profit of $3.23 per diluted share in the same quarter last year.
The average analyst estimate had been for an adjusted profit of $3.19 per share, according to estimates compiled by financial markets data firm Refinitiv.
“Our performance this quarter reflects our highly diversified business mix and the strength, size and stability of our balance sheet, which has been further enhanced by the successful acquisition of Bank of the West,” BMO chief executive Darryl White said in a statement.
BMO completed its deal to buy California-based Bank of the West on Feb. 1.
In its second quarter, BMO said its Canadian personal and commercial banking operations earned $861 million, down from $940 million in the same quarter last year, while its U.S. personal and commercial banking business earned $789 million, up from $588 million a year earlier.
BMO’s wealth management business earned $284 million, down from $314 million in the same quarter last year.
The bank’s capital markets business earned $380 million, down from $448 million a year earlier.
BMO’s corporate services division lost $1.26 billion in its latest quarter compared with profit of $2.47 billion in the same quarter last year.
Meanwhile, Scotiabank also raised its quarterly dividend Wednesday as it reported a second-quarter profit of $2.16 billion, down from $2.75 billion in the same quarter last year.
The bank said it will now pay a quarterly dividend of $1.06 per share, up from $1.03 per share.
The increased payment to shareholders came as the bank says it earned $1.69 per diluted share for the quarter ended April 30, down from a profit of $2.16 per diluted share a year earlier.
Revenue totalled $7.93 billion, down from $7.94 billion in the same quarter last year, while provisions for credit losses totalled $709 million, up from $219 million a year ago.
On an adjusted basis, Scotiabank says it earned $1.70 per diluted share in its latest quarter, down from an adjusted profit of $2.18 per diluted share in the same quarter last year.
Analysts on average had expected an adjusted profit of $1.78 per share, according to estimates compiled by financial markets data firm Refinitiv.
“I am pleased with the bank’s stable operational performance in the quarter and encouraged that our strong capital and liquidity profile positioned us well to manage through the current environment of heightened macroeconomic uncertainty,” Scotiabank chief executive Scott Thomson said in a statement.
Scotiabank said its Canadian banking division earned $1.06 billion in net income attributable to equity holders in its second quarter, down from $1.18 billion in the same quarter last year, while its international banking operations earned net income attributable to equity holders of $642 million, up from $605 million a year earlier.
The bank said its global wealth management division earned $353 million in net income attributable to equity holders, compared with $407 million in the same quarter last year.
Scotiabank’s global banking and markets group earned $401 million, down from $488 million a year earlier.
In its other category, Scotiabank reported a loss of $323 million in its latest quarter compared with a loss of $10 million in the same quarter last year.
© 2023 The Canadian Press
More Stories
Feds give financial boost to biofuel sector amid growing U.S. competition | CBC News
Here’s what you need to know about ‘halal mortgages,’ rates
What is a ‘halal mortgage’? Does it make housing more accessible?