Bank Of Montreal Stock Price, News & Analysis

BMO has announced support for customers and communities impacted by Hurricane Milton. The bank is offering disaster relief options and financial assistance to affected customers. BMO supports the American Red Cross with an annual corporate donation for ongoing relief and resiliency work, including response to communities affected by the hurricane.

Financial relief for BMO personal banking customers includes waiving monthly maintenance fees, non-BMO ATM transaction fees, and overdraft fees. The bank is also extending payment due dates for mortgages, loans, and lines of credit, as well as offering reduced credit card payment amounts. Additionally, BMO is providing low-interest rate loans to qualified consumers in impacted areas within the BMO footprint.

Darrel Hackett, President & CEO of BMO Bank, expressed the bank's commitment to supporting customers, colleagues, and communities in recovering from the devastating storm. BMO encourages those wishing to support relief efforts to do so through organizations such as Direct Relief, United Way Suncoast, and the American Red Cross.

BMO has appointed Kristin Milchanowski as its new Chief Artificial Intelligence and Data Officer, effective October 15, 2024. Kristin will lead BMO's strategies in AI, data, analytics, and robotics, focusing on optimizing business value and enhancing data management across the organization. With over 20 years of experience, primarily in the financial sector, Kristin joins BMO from EY, where she was a Global Innovation Partner / Principal specializing in AI and advanced technologies.

This appointment aligns with BMO's significant investments in AI, including recent recognitions for AI innovation and partnerships with organizations like the Vector Institute, Creative Destruction Lab, and NEXT AI. These collaborations aim to advance AI-enabled solutions, support the AI ecosystem, and foster growth in AI and data science businesses.

BMO has announced a reduction in its US$ prime lending rate from 8.50 percent to 8.00 percent. This 0.50 percentage point decrease will take effect on September 19, 2024. The prime lending rate is a important benchmark used by banks to set interest rates for various financial products, including loans and credit lines. This change could potentially impact borrowing costs for BMO's customers and the bank's overall lending business.

BMO Financial Group (TSX: BMO) (NYSE: BMO) announced a significant legal victory as the U.S. Court of Appeals for the Eighth Circuit overturned a previous jury verdict related to the Petters Ponzi scheme. The court instructed the district court to enter judgment in favor of BMO's U.S. subsidiary, BMO Bank National Association. This ruling is expected to result in a reversal of BMO's current provision of CAD$1,190 million, including accrued interest. The bank anticipates an after-tax recovery of CAD$875 million to be recorded in the fourth quarter in the Corporate Services segment, treated as an adjusting item. This outcome represents a substantial financial benefit for BMO, potentially improving its financial position and shareholder value.

Bank of Montreal (TSX: BMO) (NYSE: BMO) has announced its dividend declarations for Q4 2024. The quarterly dividend on common shares remains unchanged at $1.55 per share, payable on November 26, 2024, to shareholders of record on October 30, 2024. The bank also declared dividends on various Class B Preferred Shares, with amounts ranging from $0.190875 to $36.865 per share, depending on the series.

BMO offers a Shareholder Dividend Reinvestment and Share Purchase Plan, allowing common shareholders to reinvest cash dividends in additional common shares. These shares will be purchased on the open market without a discount. The deadline for registered shareholders to enroll in the Plan is November 1, 2024.

BMO Financial Group reported Q3 2024 results with net income of $1,865 million ($2.48 per share), compared to $1,565 million in Q3 2023. Adjusted net income was $1,981 million ($2.64 per share), down from $2,148 million last year. Key highlights include:

- Provision for credit losses increased to $906 million from $492 million
- Return on equity (ROE) improved to 10.0% from 9.0%
- Common Equity Tier 1 (CET1) Ratio strengthened to 13.0% from 12.3%
- Year-to-date net income rose to $5,023 million from $2,727 million

BMO maintained its quarterly dividend at $1.55 per share, a 5% increase year-over-year. The bank reported strong pre-provision, pre-tax earnings and positive operating leverage, despite increased credit costs above historical ranges.

BMO has launched an enhanced BMO Premium Rewards Credit Card with Mastercard, designed to help customers make real financial progress. The card offers increased rewards on everyday spending, including:

• 4x points on gas, electric vehicle charging, groceries, and dining (up to $2,000 in combined spend per quarter)
• 2x points on hotels and airfare (up to $2,000 in combined spend per quarter)
• 1x points on all other purchases
• 10% anniversary bonus points based on net purchases from the previous year

The card also provides access to Mastercard offers and benefits. Points never expire and can be redeemed for gift cards, cash, statement credits, travel, and more. The enhancements apply to both new and existing cardholders automatically.

BMO Financial Group has announced a quarterly dividend increase for its common shares to $1.55, marking a 4 cent or 3% rise from the previous quarter and a 5% increase from the previous year. The dividend will be paid on August 27, 2024, to shareholders of record as of July 30, 2024.

Additionally, dividends were declared for several series of Class B Preferred Shares: $0.2265 for Series 29, $0.240688 for Series 31, $0.190875 for Series 33, and $0.426 for Series 44, payable on August 26, 2024.

Common shareholders can opt for dividend reinvestment through the Shareholder Dividend Reinvestment and Share Purchase Plan, with enrolment forms due by August 1, 2024.

BMO Financial Group reported second quarter 2024 results with net income of $1,866 million, up from $1,029 million in the same period last year. Adjusted net income was $2,033 million, down from $2,186 million. Reported EPS rose to $2.36 from $1.26, while adjusted EPS decreased to $2.59 from $2.89. The provision for credit losses dropped to $705 million from $1,023 million. ROE increased to 9.9% from 5.5%, but adjusted ROE fell to 10.9% from 12.6%. The CET1 ratio improved to 13.1% from 12.2%. A quarterly dividend of $1.55 per common share was declared, up 5% from last year.

Year-to-date net income reached $3,158 million, compared to $1,162 million last year; adjusted net income was $3,926 million, down from $4,344 million. Reported EPS rose to $4.08 from $1.42, while adjusted EPS fell to $5.14 from $5.94. The provision for credit losses amounted to $1,332 million, up from $1,240 million. ROE increased to 8.5% from 3.0%, but adjusted ROE decreased to 10.7% from 12.8%.

CEO Darryl White emphasized strong earnings growth, good operating leverage, and a solid balance sheet, despite economic challenges. BMO was recognized by Fast Company as one of the World's Most Innovative Companies of 2024.