Reuters Canada's Bank of Montreal posted a lower fourth quarter profit on Thursday, as revenue from its capital markets business fell as the lender increased provisions for credit losses to prepare for potential defaults in the face of a tepid economy.
Net income, including one-off items, fell to C $2.14 billion $1.59 billion or C $3.04 a share in the three-month period ended October 31, from C $2.23 billion, or C $3.33 a share last year.
According to data from Refinitiv IBES, analysts had predicted that the company would have a profit of C $3.07 per share.
The Canadian lender had set aside provisions of $226 million in the reported quarter, compared with a release of $126 million last year.
BMO has a 30% increase in profit from its personal and commercial business in the U.S. Peers Royal Bank of Canada and National Bank of Canada posted a 5% and 13% jump in their personal and commercial businesses on Wednesday.
BMO had also booked a charge of C $1.12 billion after a U.S. jury found its local unit liable for more than $550 million in damages related to a Ponzi scheme operated by a Minnesota businessman.