BMO Financial Group (BMO) Misses Q4 EPS by 5c

December 2, 2014 7:31 AM EST
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BMO Financial Group (NYSE: BMO) reported Q4 EPS of CDN$1.63, CDN$0.05 worse than the analyst estimate of CDN$1.68.

Fourth Quarter 2014 Compared with Fourth Quarter 2013:

--  Net income of $1,070 million, essentially unchanged; adjusted net income(1) of $1,111 million, up 2%
-- ROE of 13.1%, compared with 14.8%; adjusted ROE(1) of 13.7%, compared with 15.0%
-- Provisions for credit losses of $170 million, compared with $189 million; adjusted provisions for credit losses(1) of $170 million, compared with $140 million

"BMO's fourth quarter results conclude a year in which the bank delivered $4.5 billion in adjusted net income with adjusted earnings per share up 6% from last year," said Bill Downe, Chief Executive Officer, BMO Financial Group. "This performance reflects a well-executed customer-focused strategy and the momentum we have demonstrated over a number of consecutive quarters.

"Canadian Personal and Commercial Banking had a strong year with over $2 billion in earnings and operating leverage of 2%. Our largest business continued to deliver good balance sheet growth and improved efficiency.

"U.S. Personal and Commercial Banking finished the year with good momentum and balance sheet growth, demonstrating improved revenue and earnings trends in the second half of the year. In the fourth quarter, adjusted pre-provision pre-tax earnings were up 5% year over year and adjusted operating leverage was 1.3%.

"Wealth Management posted another good year with adjusted net income over $800 million, benefiting from significant asset growth and our leading market positions. BMO's expanded global asset management business continues to innovate its distinguished product offering.

"Capital Markets generated over $1 billion in earnings with a strong ROE of 19% and good progress on our U.S. strategy.

"Credit performance was good with higher provisions largely reflecting lower recoveries compared to last year.

"BMO's Common Equity Tier 1 ratio ended the year strong at 10.1%.

"Looking ahead, we have an advantaged business mix, geographic diversification and a workforce with a deeply engrained commitment to customers, all of which provide attractive opportunities for growth. BMO's brand promise is a clear, concise expression of what we expect of ourselves and the commitment to deliver what our customers expect of us," concluded Mr. Downe. "On behalf of our more than 46,000 employees, I want to thank our customers for their loyalty."

For earnings history and earnings-related data on BMO Financial Group (BMO) click here.

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