BMO Financial Group topped expectations for its third-quarter results, boosted by strength in its U.S. operations.
The bank said Tuesday it earned $1.54 billion for the quarter ended July 31, up from $1.39 billion in the same quarter a year ago.
The profit amounted to $2.31 per share for the quarter, up from $2.05 per share in the same quarter last year.
On an adjusted basis, BMO says it earned $1.57 billion or $2.36 per share in its most recent quarter, up from $1.37 billion or $2.03 per share a year ago.
Analysts had expected the bank to earn $2.26 per share for the quarter, according to Thomson Reuters Eikon.
The bank’s wealth management arm earned $291 million, up $22 million or 8% from a year ago. Net income for traditional wealth was $202 million, an increase of $10 million or 6%, as equity markets improved.
Insurance net income was $89 million, an increase of $12 million or 15% from the same period last year.
BMO’s capital markets group earned $301 million, up $20 million.
BMO chief executive Darryl White said the bank saw a particularly good contribution from its U.S. segment and from its commercial businesses on both sides of the border.
“Our performance is a direct result of efforts to simplify how we work across our organization and with our customers and deliver the exceptional products and experiences that our customers have come to expect,” White said in a statement.
Canadian personal and commercial banking earned $642 million for the quarter, up $29 million from a year ago.
Meanwhile, U.S. personal and commercial banking earned $364 million, up $96 million from the same quarter last year.
BMO’s corporate services division lost $62 million for the quarter compared with a net loss of $44 million in the prior year.
The bank’s total provision for credit losses—or money set aside to cover bad loans—was $186 million, an increase of $60 million from the prior year.
BMO’s common equity Tier 1 (CET1) ratio was 11.4% at the end of July.
The bank’s quarterly dividend of $0.96 per share will stay the same.
BMO also announced Tuesday that Craig Broderick, former chief risk officer of the Goldman Sachs Group Inc., has joined its board of directors.
Broderick retired from Goldman Sachs in January.