BMO’s Shares Sink as Bank Signals That Credit Pain Will Persist
- Desjardins analyst downgrades lender, cuts price target
- Bank’s US business also saw profit slip amid revenue pressure
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Bank of Montreal’s shares plunged the most in four years after the lender reported earnings that missed analysts’ estimates as it set aside more money than expected for potential credit losses.
The Toronto-based lender earned C$2.59 a share on an adjusted basis in the fiscal second quarter, it said in a statement Wednesday, falling short of the C$2.77 average estimate of analysts in a Bloomberg survey. The bank’s provisions for credit losses totaled C$705 million ($516 million) in the three months through April, more than the C$585 million analysts had forecast.