BMO's Q4 Revenue And Profit Drop, Increases Dividend By 3%
Portfolio Pulse from Akanksha Bakshi
Bank of Montreal (NYSE:BMO) reported a Q4 FY23 revenue decrease of 22.3% Y/Y to C$8.36 billion, with adjusted revenue up 19% Y/Y. Adjusted EPS dropped to C$2.81 from C$3.04 in 4Q22. Net income fell to C$1.617 billion, and the provision for credit losses doubled to C$446 million. ROE decreased to 8.6% from 27.6%, and the CET1 ratio fell to 12.5% from 16.7%. However, Canadian P&C and U.S. P&C net incomes increased Y/Y, while BMO Wealth Management and Corporate Services saw declines. BMO raised its dividend by 3% to C$1.51, payable on February 27, 2024. BMO shares rose 1.75% to $83.73.
December 01, 2023 | 3:38 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Bank of Montreal's Q4 FY23 report shows a revenue decrease but an increase in adjusted revenue and dividends. Shares are trading higher.
Despite the reported decrease in revenue and net income, the increase in adjusted revenue and dividends, along with the positive price action, suggests a short-term positive impact on BMO's stock. The market may be responding favorably to the dividend increase and the bank's positioning for future growth.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100