(November 28 – 15:00 ET) – Bank of Montreal is reporting improved earnings for the year ended October 31.

Net income for the year was $1,857 million, up $475 million or 34% from a year ago. Return on equity was 18%, up from 14.1% in 1999.

The bank said earnings per share for 2000 grew to $6.56, up $1.84 or 39%, from 1999. The bank’s expense-to-revenue ratio of was 60.7, an improvement from last year’s 66.7%.

“Our earnings performance was driven by volume growth in personal banking, commercial and small business banking and wealth management,” said Tony Comper, chairman and CEO. “In addition, our performance benefited by the gains generated from the sale of some non-core businesses and by continuing to maintain good credit quality and expense control.

The bank said it met its financial targets for the year 2000, and noted that the improved results mark the 11th consecutive year of earnings growth.

Revenues in 2000 increased $736 million or 9.3%. Non-interest expenses decreased $30 million or 0.6%. The provision for credit losses increased $38 million to $358 million.

The bank said the contribution to net income from normal operations of institutional businesses increased modestly year-over-year. Its results also reflected lower earnings from the bank’s investment in Grupo Financiero Bancomer and a higher provision for credit losses.

Personal and Commercial Client Group net income increased 33.2% from $624 million to $831 million, excluding non-recurring items. The increase in net income, excluding non-recurring items, was driven by increasing revenues in Canada and the United States, while limiting expense growth to 0.2%.

Private Client Group net income increased 48%, from $130 million to $192 million, driven by increased revenues. Higher volumes in wealth management businesses drove revenue growth of 25.7%.

However, the bank said that the Group’s revenues from normal operations were 31.7% higher than in the prior year as 1999 included an extra month’s results of BMO Nesbitt Burns Inc. This had the effect of increasing 1999 revenues and thus reducing reported revenue growth in 2000 by 6%.
-IE Staff