Banking giants close out Big Six earnings season
Bank of Montreal (BMO) and National Bank have become the final two of Canada’s Big Six banks to announce their fourth-quarter earnings, with BMO’s Q4 profit falling compared with the same time last year and National Bank reporting a slight year-over-year uptick in net income.
BMO said in a statement on Friday morning that its net income for the quarter was just under $1.62 billion, down from $4.48 billion in 2022’s fourth quarter, with adjusted earnings per share (EPS) coming in at $2.81 compared with $3.04 the previous year.
The bank set aside a smaller amount for credit losses than analysts had expected, although that figure still rose on a yearly basis to $446 million (up from $226 million in Q4 2022).
Its Q4 expenditure included after-tax acquisition and integration costs of $433 million, an increase from $145 million at the same time last year, mainly tied to its February acquisition of US lender Bank of the West.
That purchase also contributed to a net income loss of $757 million in the bank’s corporate-services division, compared with a net income gain of $2.25 billion the same time last year.
National Bank, meanwhile, reported net income of $768 million, a 4% increase over its fourth-quarter earnings last year, with diluted EPS coming in at $2.14, up from $2.08.
The funds set aside by the bank for credit losses also increased, jumping from $87 million to $115 million, continuing a trend that’s seen each of Canada’s banking giants earmark higher provisions for a rainy day amidst continuing economic turbulence.
