BMO’s profits rise but money management unit costs outweigh its profits

bobilo0106 1 March 2022

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BMO declared a quarterly dividend of $1.33 per share on paid-up common shares for the second quarter of fiscal year 2022, unchanged from the previous quarter.

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money management

For the banking group’s wealth management business, reported net income was $315 million, compared to $336 million in the prior year, and adjusted net income was $316 million, compared to $344 million in the prior year.

Traditional Wealth reported net income was $261 million, an increase of $5 million, or 2%, and adjusted net income was $262 million, a decrease of $2 million or 1%, driven by growth in client assets, including strong global markets. With underlying revenue, more than offset by the impact of higher underlying expenses and disinvestments.

Insurance net income was $54 million, a decrease of $26 million from the prior year, primarily due to less favorable market movements in the current quarter compared to the prior year.

Capital market

For Capital Markets, reported net income was $705 million, an increase of $227 million or 47% from the prior year, and adjusted net income was $712 million, an increase of $228 million or 47%. Reported and adjusted results were driven by continued strong revenue performance, with higher revenues in investment and corporate banking particularly driven by strong underwriting and advisory revenues and in global markets driven by enhanced client activity, higher expense, higher performance-based including compensation, and a recovery of loan losses in the current quarter as compared to a provision in the prior year.