BMO hikes dividend by 25%

BMO Financial Group raised its quarterly dividend 25 per cent and beat expectations because it reported a fourth-quarter revenue of practically $2.2 billion, up from practically $1.6 billion in the identical quarter final yr.

The financial institution mentioned Friday it will now pay a quarterly dividend of $1.33 per share, up from $1.06. It additionally plans to purchase again as much as 22.5 million of its shares.

BMO says its revenue amounted to $3.23 per share for the quarter ended Oct. 31, up from $2.37 per diluted share in the identical quarter final yr. Revenue totalled $6.6 billion, up from practically $6 billion a yr in the past.

On an adjusted foundation, BMO says it earned $3.33 per diluted share, up from an adjusted revenue of $2.41 per diluted share in the identical quarter final yr.

Analysts on common had anticipated an adjusted revenue of $3.21 per share, in line with estimates compiled by monetary markets information agency Refinitiv.

“We delivered another quarter of strong performance with positive operating leverage in each of our diversified businesses, contributing to strong earnings for fiscal 2021,” BMO chief govt Darryl White mentioned in a press release.

“Looking ahead to 2022, we will continue to position BMO for growth with the ensuing economic recovery. We are making targeted investments in technology and talent to drive enhanced customer experiences and deliver market-leading advice to help them make real financial progress.”

All six of Canada’s massive banks have raised their dividends and introduced plans to purchase again giant numbers of their shares this week as they reported their fourth-quarter outcomes.

The elevated funds to shareholders comply with a choice by the federal banking regulator final month to raise restrictions on dividend will increase, share buybacks and govt compensation that had been put in place at the beginning of the pandemic.

In its fourth quarter, BMO posted a $126-million reversal of its provisions for credit score losses in contrast with the $432 million it put aside for unhealthy loans in the identical quarter final yr.

BMO mentioned its Canadian private and industrial banking enterprise earned $921 million within the fourth quarter, up from $647 million a yr earlier, while its U.S. private and industrial banking operations earned $512 million, up from $324 million.

The financial institution’s wealth administration enterprise earned $369 million, up from $320 million in the identical quarter final yr, while its capital markets arm earned $536 million, up from $379 million.

BMO mentioned its company companies group misplaced $179 million within the fourth quarter, in contrast with a lack of $86 million in the identical quarter final yr.

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