(August 22 – 11:30 ET) – Bank of Montreal is reporting financial results today for the third quarter ended July 31. The bank says its net income was $401 million for the third quarter, up $3 million from a year ago. Earnings per share were $1.40 on fully diluted basis.

Net interest income for the quarter was $1,090 million, a decrease of $2 million from the prior year. Net interest income included volume increases across most lines of business, offset by lower spreads in capital markets businesses, a decline in the contribution from Bancomer and reduced cash collections on impaired loans.

Other income was $1,005 million for the quarter, an increase of $72 million from the prior year. Excluding gains on disposal of businesses, other income increased $80 million, or 8.8%. The banks says the increase, a result of greater volumes across most lines of business and higher investment securities gains, was offset partially by lower trading revenues and lower custodial fees due to the sale of our trust business.

Total revenues for the quarter were $2,095 million, an increase of $70 million, or 3.4%, from a year ago. Excluding $19 million of revenues on the sale of branches in the current period and $27 million of revenues on the sale of the bank’s global custody business in the third quarter of the prior year, revenues increased $78 million, or 3.9 per cent. Personal and commercial client group revenue increased by 9.5%, and private client revenue grew by 23.1%. Investment banking revenue fell 12.1%.

Return on equity was 16.6% on a cash basis in the third quarter.

“The bank continues to experience strong growth in personal and commercial banking and wealth management,” said Tony Comper, chairman and CEO. “Compared to the third quarter last year, residential mortgages increased by $2.6 billion, credit cards and other personal loans increased by $1.1 billion and loans to commercial enterprises, including small business, increased $1.7 billion.

The bank says that while record-breaking performance in the first two quarters has moderated as expected, due to weaker capital markets, year-over-year results reflect good growth in most of its core businesses.
-IE Staff