BMO reports 37% earnings increase

BMO Financial Group has released strong Q3 2012 results. Its net income rose by 37% to $970 Million, or $1.42 per share.

On an adjusted basis, net income was $1,013 million or $1.49 per share, rising 18% over last year.

The bank’s dividend jumped up by 3%, and BMO has announced a fourth quarter dividend of $0.72 per common share. This is a two-cent per share increase from Q3, and is equivalent to an annual dividend of $2.88.

“We increased the dividend, reflecting our capital position and plan to generate sustained earnings growth. We also moved the target payout range to 40-to-50%, which gives us more flexibility to grow the bank” says BMO.

BMO’s common equity ratio strengthened to 10.31%, using a Basel II approach.

“Our core franchise, P&C Canada, experienced good volume growth across most product lines, including residential mortgages,” says Bill Downe, president and CEO. “The recent changes to Canada’s mortgage market were responsible and timely, and they align with BMO’s risk practices.”

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He adds, “The U.S. P&C business continues to generate healthy organic growth in commercial loans and is executing against its plans.”

Earnings in the bank’s wealth business were up quarter-over-quarter when adjusted to exclude the impact of movements in long-term interest rates on the bank’s insurance business.

“Overall, all of our businesses are on track to finish the year with strong performance in a highly competitive environment,” concluded Downe.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.