By Ketki Saxena
Investing.com – Bank of Montreal(TSX:BMO) reported a net income of $247 million in the three months ending Jan. 31 compared to $2.9 billion from a year earlier, largely due to valuation adjustments on its acquisition of BNP Paribas (EPA:BNPP) SA’s Bank of the West.
On an adjusted basis, BMO (TSX:BMO) earned $3.22 per share, or $2.3 billion, down 12% year over year but beating analyst average expectations for $3.16 per share.
The bank reported $217 million in provisions for credit losses, compared to a recovery of $99 million a year ago and analyst projects for an increase of $300.5 million.
By segment, adjusted profits at the Canadian personal and commercial banking segment’s adjusted profit slipped 2% year over year to $980 million, despite rising revenue as higher expenses and provisions for credit losses grew.
The U.S. segment saw adjusted profit rise 3% to $699 million, boosted by a stronger U.S. dollar.
Bank of Montreal’s wealth management and capital markets businesses in the first quarter saw profits hit by volatility in markets. The wealth management segment saw adjusted profit fall 12% to $278 million. BMO Capital Markets’ adjusted net income fell by 28% to $510 million.