By Ketki Saxena
Investing.com -- BMO (TSX:BMO) posted adjusted earnings that fell 4% year over year related to one time-charges, underperforming analyst expectations. The bank also boosted its quarterly dividend by four cents to $1.43 per share.
BMO’s earnings were reported at $4.48 billion, or $6.51 per share, compared with $2.16 billion, or $3.23 per share, in the same quarter last year.
Adjusted to exclude the one-time items, earnings were $2.14 billion or $3.04 per share, down from $2.22 billion or $3.33 per share a year ago. Analysts had been expecting $3.09 per share.
One-time charges included $17.1 billion related to the BMO’s deal to acquire California-based Bank of the West.
BMO also took a one-time charge of $1.14 billion after a U.S. court found the bank liable for damages in a lawsuit related to a Ponzi scheme by one of its former clients.
Canadian retail banking saw profit down 2% as net interest income shrank by 6 basis points. Profit from U.S. retail banking however soared 30% as loan balances and margins rose.
Capital markets profits fell 33% on declining corporate and investment banking revenue and increasing costs.
BMO put aside $226 million in provisions for credit losses, a sharp increase from the previous year but lower than analyst expectations.