BMO Beats Estimates on Loan Income Even as Provisions Climb

Bank of Montreal topped estimates as net interest income came in higher than expected even as the company set aside more money to cover loans that are still in good standing, highlighting growing concern about the fate of the North American economy.

The Canadian bank earned C$2.62 a share on an adjusted basis in its fiscal second quarter, according to a statement Wednesday, beating the C$2.54 average estimate of analysts in a Bloomberg survey. Net interest income, the difference between what the bank earns on loans and pays for deposits, totaled C$5.1 billion ($3.7 billion), higher than the C$5.04 billion expected by analysts.