Bank of Montreal Falls After Setting Aside More for Soured Loans

Bank of Montreal shares fell after the lender reported earnings that showed credit weakness in its key U.S. operations, Bloomberg News reported. Earnings at the company’s U.S. banking division, which includes Chicago-based BMO Harris Bank, fell 21% to C$351 million ($264 million) in the fiscal first quarter, marking a setback for Chief Executive Officer Darryl White, who’s put an emphasis on the U.S. for growth. The bank set aside C$149 million for soured loans for the U.S., more than double the amount in the fourth quarter and up from C$6 million a year ago. Provisions for credit losses were “elevated, but we earned through it and we expect it to come down next quarter and for the balance of the year,” White said on the company’s earnings call Tuesday. Shares of Canada’s fourth-largest lender by assets fell 1.6% to C$97.93 at 10:10 a.m. in Toronto. Read more

Location