Shares of Bank of Montreal (NYSE: BMO) declined 6.2% on the NYSE in response to weak third-quarter fiscal 2024 (ended July 31) results. Adjusted earnings per share of C$2.64 declined 10.2% year over year.
A significant jump in provision for credit losses and lower net interest income (NII) primarily hurt the results. However, an increase in non-interest income, higher loans and deposit balance and lower expenses acted as a tailwind.
After considering non-recurring items, net income was C$1.87 billion ($1.37 billion), which grew 19.2% from the year-ago quarter.
BMO's Revenues Rise, Expenses Dip
Total revenues (on an adjusted basis), net of insurance claims, commissions and changes in policy benefit liabilities (CCPB), were C$8.21 billion ($5.99 billion), up marginally year over year.
NII declined 2% year over year to C$4.81 billion ($3.51 billion). On the other hand, non-interest income came in at C$3.4 billion ($2.48 billion), up 3.4%.
Adjusted non-interest expenses decreased 5% to C$4.7 billion ($3.43 billion).
The adjusted efficiency ratio (net ...
