(In paragraph 4, corrects year of deal to 2011 from 2001)
May 29 Bank of Montreal said on
Wednesday that its quarterly net profit fell 5 percent due to
restructuring costs and lower net interest margins in its
BMO, Canada's fourth-largest bank, said it had earned C$975
million, or C$1.42 a share, in the second quarter ended April
30, compared with C$1.03 billion, or C$1.51 a share, a year
Excluding special items, earnings were C$1.46 a share.
Analysts on average had expected C$1.49, according to Thomson
Profit suffered from C$59 million in restructuring costs
during the quarter, as well as a sharp drop in income from
structured credit assets acquired in the 2011 takeover of
Wisconsin lender Marshall & Illsley.
That acquisition roughly doubled BMO's U.S. branch count to
more than 600 and has given the bank a sizeable platform in a
recovering area expected to show stronger growth than its
Canadian markets, which have been relatively steady in the wake
of the financial crisis.
Profit from BMO's Canadian retail bank slipped to C$430
million from C$433 million, hurt by narrower interest margins as
expiring loans were renewed at current rock-bottom rates.
BMO is the fourth Canadian bank to report this quarter and
the third to report results that have fallen short of analysts'
(Reporting by Cameron French and Euan Rocha; Editing by Gerald
E. McCormick and Lisa Von Ahn)