Bank of Montreal Q1 2020 net income rises by 5.4% year-over-year to C$1.59bn ($1.2bn), ahead of analyst forecasts.
Highlights include a 39% rise y-o-y in net income at the bank’s Capital Markets unit to C$356m.
Meantime, the bank’s Canadian Personal & Commercial unit reports net income of C$700m, up by 8% y-o-y. And the unit also reports a 7 basis point rise in its net interest margin to 2.68%.
On the other hand strong revenue growth is partially offset by higher provisions for credit losses.
Bank of Montreal Q1 2020 hits also include progress in growing its wealth management franchise.
Wealth management net income is up by 22% y-o-y to C$291m. Notably, the unity reports deposit growth of 12% and loan growth of 14%.
Bank of Montreal Q1 2020 less positive metrics
First quarter net income falls by 21% y-o-y to C$351m at the bank’s US-based Personal & Commercial banking unit. The bank is hit by the double whammy of ongoing margin pressure and higher loan-loss provisions. Specifically, the net interest margin is down sharply, by 37 basis points y-o-y to 3.34%.
However the unit does report double-digit loan and deposit growth in commercial banking. Group wide return on equity in the first quarter inches down by 30 basis points y-o-y to 13.3%.
Bank of Montreal Q1 2020: efficiency ratio improves
But the bank’s cost-income ratio is moving in the right direction, down by 20 basis points y-o-y to 54.4%.
Bank of Montreal ends the first quarter with 1,456 branches, down by net a 26 outlets y-o-y.
Its Canada-based network inches down from 908 to 891 units. Meantime, the bank’s US network is down by 9 branches to 561 outlets.
“We have significant momentum, with businesses increasing market share,” says Darryl White, Chief Executive Officer, BMO. “Our segments are winning on the strength of our customer value proposition and our ability to compete effectively.”