Bank of Montreal (BMO) reported its Q2 2020 earnings, detailing a resilient performance despite the COVID-19 pandemic's impact.
The bank generated CAD 2 billion in pre-provision pre-tax earnings, absorbing a significant CAD 1.1 billion provision for credit losses, with CAD 705 million specifically for performing loans. Total revenue was CAD 5.5 billion, down 3% year-over-year, primarily due to lower revenue in market-sensitive businesses, though P&C businesses saw growth in loans and deposits.
Net interest income increased by 12%, while net non-interest revenue declined. Expenses were managed effectively, decreasing by 2%.
The Common Equity Tier 1 ratio remained strong at 11%. BMO Capital Markets experienced a net loss of CAD 68 million due to higher credit losses and market volatility, while Wealth Management reported net income of CAD 153 million, impacted by a legal provision and market movements in its insurance business.
The bank highlighted its strong liquidity, capital position, and commitment to supporting customers and communities through the crisis.
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