BMO Financial Group Reports Net Income of $1 Billion for the Second Quarter of 2015
OREANDA-NEWS. For the second quarter ended April 30, 2015, BMO Financial Group reported net income of \$999 million or \$1.49 per share on a reported basis and net income of \$1,146 million or \$1.71 per share on an adjusted basis. Reported net income includes a \$106 million charge primarily due to restructuring to drive operational efficiencies.
"BMO delivered good results in the second quarter, with adjusted net income of \$1.1 billion, up 5% from last year and 10% from the first quarter. Our operating groups performed well, demonstrating the benefits of our advantaged business mix, which is diversified by geography and customer type," said Bill Downe, Chief Executive Officer, BMO Financial Group.
"Our combined Personal and Commercial Banking business delivered adjusted earnings of \$706 million, up 8% from last year. Wealth Management demonstrated continued strong momentum, with Traditional Wealth posting adjusted net income growth of 23%. Capital Markets net income rebounded strongly from last quarter.
"Looking ahead, with our consistent strategy and a deeply engrained commitment to customers, we are confident in the opportunities for growth across the bank," concluded Mr. Downe.
(1) | Results and measures in this document are presented on a GAAP basis. They are also presented on an adjusted basis that excludes the impact of certain items. Adjusted results and measures are non-GAAP and are detailed for all reported periods in the Non-GAAP Measures section, where such non-GAAP measures and their closest GAAP counterparts are disclosed. |
(2) | All Earnings per Share (EPS) measures in this document refer to diluted EPS unless specified otherwise. EPS is calculated using net income after deductions for net income attributable to non-controlling interest in subsidiaries and preferred share dividends. |
Concurrent with the release of results, BMO announced a third quarter 2015 dividend of \$0.82 per common share, up \$0.02 per share or 2% from the preceding quarter and up \$0.04 per share or 5% from a year ago, equivalent to an annual dividend of \$3.28 per common share.
Total Bank Overview
Net income was \$999 million for the second quarter of 2015, down \$77 million or 7% from the prior year due to a \$106 million charge taken in the quarter primarily due to restructuring to drive operational efficiencies. Adjusted net income was \$1,146 million, up \$49 million or 5%.
Adjusted net income was up from the prior year in both P&C businesses and Wealth Management. BMO Capital Markets results were significantly higher than the prior quarter driven by higher revenue from our Trading Products business.
The Basel III Common Equity Tier 1 Ratio remains strong at 10.2%.
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