Bank of Montreal Takes Hit on Credit Losses, Tighter Margins

  • US division sees higher provisions after major acquisition
  • Bank sees C$162 million in severance costs after cutting staff
Photographer: Christinne Muschi/Bloomberg
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Bank of Montreal set aside more money for potentially sour loans and severance costs as it absorbs Bank of the West during a difficult period for US regional lenders.

The Canadian bank earned C$2.04 billion ($1.89 billion) on an adjusted basis in the fiscal third quarter, weighed down by weaker results in its US personal and commercial division. That was equal to C$2.78 per share, short of the C$3.13 expected by analysts in a Bloomberg survey.