Proactive Investors - BMO Financial Group (Bank of Montreal (TSX:BMO)) announced on Friday that it earned $2.81 per diluted share on an adjusted basis during its fourth quarter of 2023, down from $3.04 per share a year ago and less than the $2.85 expected by analysts.
The bank’s bottom-line results were impacted by higher expenses related to the integration of its Bank of the West acquisition and a decline in wealth-management income.
The company took an after-tax acquisition and integration charge of $433 million for the quarter but it expects pretax cost savings of US$800 million annually from the acquisition, up from a previous estimate of US$670 million.
Its revenue for the quarter, meanwhile, fell to $8.36 billion from $10.57 billion during the same period last year.
BMO's total provision for credit losses for 4Q also increased to $446 million from $226 million a year earlier.
Despite the lower-than-expected results, the bank said it will raise its quarterly dividend to $1.51 per share from $1.47 previously.
Shares of BMO rose 1.4% to C$112.94 in early trading on Friday but have fallen 9% year to date.