(Reuters) – Bank of Montreal beat analysts’ estimates for second-quarter profit on Wednesday, as the lender set aside lower-than-expected provisions in the quarter.
Net income excluding one-off items rose to C$2.1 billion ($1.74 billion), or C$3.13 per share, in the three months ended April 30, compared with C$715 million, or C$1.04, a year earlier. Analysts had expected C$2.77 a share, according to IBES data from Refinitiv.
Canada’s fourth-biggest lender reported an overall net profit of C$1.30 billion, or C$1.91 a share, up from C$689 million, or C$1 a share, a year ago.
The bank earmarked C$60 million for future loan losses, much lower than the C$1.12 billion it had set aside in the same quarter last year.
The lower provisions for credit losses reflects an optimistic outlook for recovery in the broader economy, especially as COVID-19 vaccinations in the country have picked up pace following a rocky start.
The capital markets division, which includes underwriting and advisory services, posted a profit of C$563 million. The segment recorded a loss of C$74 million last year.
Global mergers and acquisitions (M&A) activity surged to set a year-to-date record in the three months ended March 31 this year.
The lender’s wealth management arm also posted a profit of C$346 million, more than double from last year.
($1 = 1.2072 Canadian dollars)
(Reporting by Nichola Saminather and Niket Nishant; Editing by Devika Syamnath)
