Bank of Montreal Announces First Quarter Profit Well Above Predictions

The Bank of Montreal has revealed its first quarter revenue and net income, which turns out to be well above the estimates of consensus. The chief executive of the bank, Bill Downe, stated that all of the bank’s major divisions in Canada and the United States, where it is operating under the brand name of BMO Harris Bank brand, has performed well during the period of last three-months, ending on Jan. 31.

Downe mentioned in a press statement that “looking ahead, we are well-positioned to leverage our North American platform and deliver sustained earnings growth.” It was declared by the bank that its quarterly dividend has increased, gaining up two cents and reaching at 74 cents per share. Previously, analysts had predicted that majority of Canada’s larger banks will increase their dividends and present sturdy earnings of first-quarter. However it was highlighted that the banks will have to remain watchful of their fare in the months past that, especially at their Canadian retail operations. Bank of Montreal has become the first bank among its league to report its first-quarter earnings.

On the other hand, the total revenue of the bank has reportedly decreased for the quarter in comparison to last year, as it fell by one per cent from $4.12 billion to $4.08 billion. However, the consensus approximated the revenue to have had fallen even drastically down to $3.9 billion. The bank announced its net income to have dropped as well, particularly by five per cent down to $1.048 billion from $1.109 billion in the first quarter of fiscal 2012. Whereas, the consensus predicted it to have been for $923.6 million or $1.45 of net income.

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