Bank of Montreal Falls After Setting Aside More for Soured Loans
- Earnings at U.S. banking division fell 21% last quarter
- ‘We do expect the loss rate to come down’ this year, CFO says
A BMO Harris Bank branch on the ground floor of the company's headquarters in Chicago.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
Bank of Montreal shares fell after the lender reported earnings that showed credit weakness in its key U.S. operations.
Earnings at the company’s U.S. banking division, which includes Chicago-based BMO Harris Bank, fell 21% to C$351 million ($264 million) in the fiscal first quarter, marking a setback for Chief Executive Officer Darryl White, who’s put an emphasis on the U.S. for growth. The bank set aside C$149 million for soured loans for the U.S., more than double the amount in the fourth quarter and up from C$6 million a year ago.