TORONTO - BMO Financial Group (NYSE:BMO) (TSX:BMO) reported mixed fourth quarter results on Tuesday, with earnings missing estimates but revenue beating expectations. The stock edged 0.2% lower in early trading following the release.
The Canadian bank reported adjusted earnings per share of C$1.90 for the quarter ended October 31, falling short of analyst estimates of C$2.46. However, revenue came in at C$8.96 billion, surpassing the consensus forecast of C$8.38 billion.
BMO's net income for Q4 was C$2.30 billion, up from C$1.71 billion in the same quarter last year. The bank attributed the earnings miss primarily to higher provisions for credit losses, which increased to C$1.52 billion from C$446 million a year ago.
"In 2024, BMO delivered good pre-provision pre-tax earnings growth across all operating groups and we met our commitment to positive operating leverage in each of the last three quarters and for the full year," said Darryl White, Chief Executive Officer of BMO Financial Group. "Our overall results were impacted by elevated provisions for credit losses, and we expect quarterly provisions to moderate through 2025 as the business environment improves."
The bank's Common Equity Tier 1 (CET1) ratio, a key measure of financial strength, improved to 13.6% from 12.5% a year earlier.
BMO also announced a 5% increase in its quarterly dividend to C$1.59 per share and its intention to establish a normal course issuer bid to repurchase up to 20 million common shares, subject to regulatory approval.
For fiscal year 2024, BMO reported adjusted earnings per share of C$9.68, down from C$11.81 in 2023, reflecting the impact of higher credit loss provisions throughout the year.
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