- Adjusted EPS: C$2.64, missing the estimate of C$2.75.
- Basel III Common Equity Tier 1 Ratio: 13%, falling short of the 13.2% estimate.
- Adjusted Return on Equity (ROE): 10.6%, below the 11.1% estimate.
- Overall Return on Equity: 10%.
- Net Income: C$1.87 billion.
- Canadian Personal and Commercial Net Income: C$914 million.
- US Personal and Commercial Net Income: C$470 million.
- Wealth Management Net Income: C$362 million.
- Capital Markets Net Income: C$389 million.
- Provision for Credit Losses: C$906 million, exceeding the C$745.2 million estimate.
- Non-Interest Expenses: C$4.84 billion, higher than the C$4.77 billion estimate.
- Analyst Ratings: 10 buys, 4 holds, 2 sells.
- Comments indicate that cyclical increases in credit costs have elevated loan loss provisions, but operating momentum and revenue growth, especially in Canadian Personal and Commercial Banking, have provided support.
A look at Bank Of Montreal Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Bank of Montreal, known as BMO Financial Group, holds a promising long-term outlook based on its Smartkarma Smart Scores analysis. With strong scores in Value and Dividend at 4 out of 5, the company is perceived positively in terms of its financial stability and returns to investors. Although Growth and Momentum scores are slightly lower at 3, indicating some room for improvement in expansion and market momentum, the company’s resilience score of 2 suggests a lower level of risk. Overall, the balanced scores point towards a steady and reliable performance for Bank of Montreal in the foreseeable future.
Bank of Montreal, operating globally in commercial, corporate, governmental, and personal banking sectors, showcases a diverse range of financial services. With a comprehensive portfolio including trust services, full brokerage, underwriting, and investment advisory services, the company demonstrates a robust presence in the financial industry. The Smartkarma Smart Scores highlight the company’s strengths in value and dividend, supporting its reputation as a stable and rewarding investment option. As Bank of Montreal continues to evolve in the dynamic market landscape, its strategic positioning and solid foundation provide a strong basis for long-term success.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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