Bank of Montreal, Last in Efficiency, Spends to Save More
- Lender takes restructuring charge, mostly for severance pay
- National Bank posts profit that beats analysts’ estimates
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Bank of Montreal, seeking to turn around the worst productivity among major Canadian lenders, is having to spend more to save money in the long run.
The Toronto-based bank recorded a C$192 million ($148 million) restructuring charge in the second quarter, mostly to cover severance payments. The firm reported an efficiency ratio -- a measure of what it costs to produce a dollar of revenue -- of 63.4 percent for the period ended April 30, its highest in two years. Excluding the restructuring cost and other adjustments, the ratio was 61.8 percent, the best in five quarters.