Bank of Montreal Earnings Beat on Capital Markets, Wealth
Bank of Montreal Q2 Earnings Beat Expectations
Bank of Montreal (BMO) reported adjusted earnings per share of C$3.67 for the second quarter, beating the analyst estimate of C$3.51. According to TD Securities analyst Mario Mendonca, the bank's personal and commercial banking earnings were slightly weaker than expected, but loan growth momentum is improving.
Strong Capital Markets and Wealth Management
The earnings beat was driven by lower provisions for credit losses, strong wealth management, and equities trading, along with the U.S. business. Mendonca noted that Canadian banking was softer than expected, but this was offset by the U.S. operations and robust performance in capital markets.
Return on Equity Target
BMO is making progress toward its goal of achieving a 15% return on equity (ROE) by 2027. Mendonca stated that while the bank is advancing, it still has a long way to go to reach the target.
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