Finance
BMO Downgraded, Shares Slump on Earnings Miss Tied to Credit
- Bank sees higher credit-loss provisions for next two quarters
- Credit performance likely to weigh on shares, analyst says
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Bank of Montreal’s shares slumped on concern the firm is overexposed to commercial loan losses and as executives warned of more pain to come.
The bank put aside more money than forecast for potentially bad loans in the fiscal third quarter, with the provisions denting its US operations, it said in a statement Tuesday. Analysts had already adjusted their estimates to account for weaker credit performance in BMO’s commercial loan book.