For the third quarter ended July 31, BMO Financial Group reports its wealth management division had net income of $264 million, up $63 million or 32% over last year.
In its release, the bank says adjusted net income of $279 million was up $52 million, or 23%, from a year ago due to higher net revenue that was only partially offset by higher expenses (Q3’s adjusted net income excludes the amortization of acquisition-related intangible assets and acquisition integration costs).
For the quarter, BMO AM’s assets under management and administration increased $15 billion, or 2%, from a year ago to $878 billion, says the bank’s report to shareholders. It notes that growth was due to “equity market appreciation and growth in new client assets, partially offset by unfavourable foreign exchange movements.”
The bank’s traditional wealth segment reported net income of $188 million, an increase of $41 million or 28%, while insurance net income was $76 million, an increase of $22 million or 43%.
Overall earnings results
For the third quarter ended July 31, BMO reports net income of $1.38 billion, up 11% over last year — that amounts to $2.05 per share on a reported basis. Adjusted net income was $1.37 billion, up 6%.
In the bank’s report to shareholders, CEO Bill Downe says, “Year-to-date, we [have] delivered double-digit earnings growth with adjusted net income of $4.2 billion […].” He cites factors such as revenue growth, strong credit performance and a focus on efficiency.
Still, the bank is offering a fourth quarter 2017 dividend of $0.90 per common share, unchanged from the preceding quarter but up $0.04 per share or 5% from a year ago. The quarterly dividend of $0.90 per common share is equivalent to an annual dividend of $3.60 per common share.