We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Bank of Montreal (BMO) Q1 Earnings Impress, Shares Up 3.3%
Read MoreHide Full Article
Shares of Bank of Montreal (BMO - Free Report) gained 3.3% on the NYSE, following the release of its first-quarter fiscal 2021 (ended Jan 31) results. Adjusted net income came in at C$2.04 billion ($1.58 billion), up 26% year over year.
The company recorded an improvement in revenues, lower provisions and a decline in expenses in the quarter, which supported results to an extent. Also, the balance sheet position remained strong.
After considering non-recurring items, net income was C$2.02 billion ($1.57 billion), up 26.7% from the prior-year quarter.
Revenues Improve, Expenses Decline
Total revenues (on an adjusted basis) — net of insurance claims, commissions and changes in policy benefit liabilities (CCPB) — amounted to C$6.37 billion ($4.95 billion), up 5.7% year over year.
Net interest income grew 5.6% year over year to C$3.58 billion ($2.78 billion). Non-interest income came in at C$3.40 billion ($2.64 billion), up 1.1% from the prior-year quarter.
Adjusted non-interest expenses declined 1.4% year over year to C$3.59 billion ($2.79 billion).
Adjusted efficiency ratio — net of CCPB — was 56.3%, down from 60.3% as of Jan 31, 2020. A fall in the efficiency ratio indicates improvement in profitability.
Provision for credit losses plummeted 55.3% year over year to C$156 million ($121.2 million).
Loans & Deposits Rise
Total assets as of Jan 31, 2021 were C$973.21 billion ($761.53 billion), up 2.5% from the prior-quarter end. Total net loans were up marginally from the prior quarter to C$451.86 billion ($353.58 billion), while total deposits increased 2% sequentially to C$672.50 billion ($526.23 billion).
Profitability and Capital Ratios Steady
Return on equity — as adjusted — came in at 15.8% in the fiscal first quarter compared with 13.5% on Jan 31, 2020. Adjusted return on tangible common equity was 18.2%, up from the prior year’s 15.8%.
As of Jan 31, 2021, common equity Tier I ratio was 12.4%, up from the year-ago period’s 11.4%. Tier I capital ratio was 14.2% compared with the previous year’s 13%.
Our Take
Bank of Montreal’s focus and efforts align with its organic and inorganic growth strategies, and are anticipated to boost revenues in the upcoming period. However, elevated expenses and economic slowdown might erode the company’s profitability.
Bank Of Montreal Price, Consensus and EPS Surprise
Barclays (BCS - Free Report) reported fourth-quarter 2020 net income attributable to ordinary equity holders of £220 million ($290.5 million), down 67.7% from the prior-year quarter.
UBS Group AG (UBS - Free Report) recorded fourth-quarter 2020 net profit attributable to shareholders of $1.71 billion, up significantly from the prior-year quarter’s $722 million.
HSBC Holdings (HSBC - Free Report) delivered fourth-quarter 2020 pre-tax profit of $1.4 billion against a pre-tax loss of $3.9 billion posted in the prior-year quarter.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
Image: Bigstock
Bank of Montreal (BMO) Q1 Earnings Impress, Shares Up 3.3%
Shares of Bank of Montreal (BMO - Free Report) gained 3.3% on the NYSE, following the release of its first-quarter fiscal 2021 (ended Jan 31) results. Adjusted net income came in at C$2.04 billion ($1.58 billion), up 26% year over year.
The company recorded an improvement in revenues, lower provisions and a decline in expenses in the quarter, which supported results to an extent. Also, the balance sheet position remained strong.
After considering non-recurring items, net income was C$2.02 billion ($1.57 billion), up 26.7% from the prior-year quarter.
Revenues Improve, Expenses Decline
Total revenues (on an adjusted basis) — net of insurance claims, commissions and changes in policy benefit liabilities (CCPB) — amounted to C$6.37 billion ($4.95 billion), up 5.7% year over year.
Net interest income grew 5.6% year over year to C$3.58 billion ($2.78 billion). Non-interest income came in at C$3.40 billion ($2.64 billion), up 1.1% from the prior-year quarter.
Adjusted non-interest expenses declined 1.4% year over year to C$3.59 billion ($2.79 billion).
Adjusted efficiency ratio — net of CCPB — was 56.3%, down from 60.3% as of Jan 31, 2020. A fall in the efficiency ratio indicates improvement in profitability.
Provision for credit losses plummeted 55.3% year over year to C$156 million ($121.2 million).
Loans & Deposits Rise
Total assets as of Jan 31, 2021 were C$973.21 billion ($761.53 billion), up 2.5% from the prior-quarter end. Total net loans were up marginally from the prior quarter to C$451.86 billion ($353.58 billion), while total deposits increased 2% sequentially to C$672.50 billion ($526.23 billion).
Profitability and Capital Ratios Steady
Return on equity — as adjusted — came in at 15.8% in the fiscal first quarter compared with 13.5% on Jan 31, 2020. Adjusted return on tangible common equity was 18.2%, up from the prior year’s 15.8%.
As of Jan 31, 2021, common equity Tier I ratio was 12.4%, up from the year-ago period’s 11.4%. Tier I capital ratio was 14.2% compared with the previous year’s 13%.
Our Take
Bank of Montreal’s focus and efforts align with its organic and inorganic growth strategies, and are anticipated to boost revenues in the upcoming period. However, elevated expenses and economic slowdown might erode the company’s profitability.
Bank Of Montreal Price, Consensus and EPS Surprise
Bank Of Montreal price-consensus-eps-surprise-chart | Bank Of Montreal Quote
Bank of Montreal currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Competitive Landscape
Barclays (BCS - Free Report) reported fourth-quarter 2020 net income attributable to ordinary equity holders of £220 million ($290.5 million), down 67.7% from the prior-year quarter.
UBS Group AG (UBS - Free Report) recorded fourth-quarter 2020 net profit attributable to shareholders of $1.71 billion, up significantly from the prior-year quarter’s $722 million.
HSBC Holdings (HSBC - Free Report) delivered fourth-quarter 2020 pre-tax profit of $1.4 billion against a pre-tax loss of $3.9 billion posted in the prior-year quarter.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>