Bank of Montreal beat analysts’ estimates as its first-quarter profits soared 34 percent after its takeover of Milwaukee-based Marshall & Ilsley Corp.
The company’s net income rose to a record C$1.11 billion, or C$1.63 per share, in the first quarter ending Jan. 31, from C$825 million, or C$1.34, a year earlier.
The Toronto-based bank said its quarterly revenue increased 19 percent to C$4.12 billion.
The company operates the BMO Financial Group, which is the parent company BMO Harris Bank.
“BMO produced record results for the quarter,” said Bill Downe, president and chief executive officer of BMO Financial Group. “Our focus on customers and investing wisely in the business are serving us well, and this is reflected in our results and the momentum of the bank. Each of our businesses is well-positioned and our balance sheet is strong – a source of confidence for our customers.
“The integration of Marshall & Ilsley is on track. A lot has already been done as we stay focused on living up to our reputation for treating customers extremely well and ensuring our new customers can draw on the strengths and the abilities of the whole company. The combination of the two banks has created a competitive platform from which to grow our Personal and Commercial and Wealth businesses in the U.S. While the largest of the platform conversions will not take place until the end of the year, we are pleased with the synergies obtained to date, reflecting the work of a focused and capable integration team,” Downe said.
“We are confirming our confidence in business growth in Canada and the United States by committing to increase the credit we make available to small and medium-size enterprises so they, in turn, can innovate, expand and create jobs. For consumers, especially homebuyers, we are actively encouraging them to borrow smartly by considering a mortgage with a shorter amortization period,” Downe said. “Overall, we believe that the recovery that is underway in the United States will lead to gradually more favorable economic and market conditions throughout North America. Our businesses, customers and shareholders all stand to benefit from this.”
