Bank of Montreal posts higher quarterly profit, hikes dividend

Bank of Montreal BMO-T Financial reported a jump in second-quarter profit on Wednesday, lifted by robust performance in its capital markets business.

Profit was $2.63-billion or $3.53 per share in the three months ended April 30, compared with $1.96-billion or $2.50 per share a year earlier.

In a press release, BMO announced a quarterly dividend of $1.71 a share, a 4 cent increase.

Worries about the impact of AI on software companies and the U.S.-Israel war against Iran rattled global financial markets in the reported quarter, triggering bouts of selloffs. Market volatility tends to be a boon for trading desks at large banks, as investors increasingly rejig portfolios to hedge against risks.

Second-quarter profit at BMO’s capital markets unit rose 47 per cent from a year earlier to $638-million.

Meanwhile, provisions for credit losses stood at $739-million in the reported quarter, compared with $1.05-billion a year earlier.

Bank of Nova Scotia also reported a jump in second-quarter profit driven by strong performance in its capital markets business, as well as a 4-cent increase to its quarterly dividend.

– with a report by Globe staff