Bank of Montreal posted a surprise drop in fiscal second-quarter profit as it set aside a larger provision for loan losses and trading revenue fell.
The bank’s provision for credit losses of C$1.02 billion ($755 million) included an initial C$517 million on the performing loan portfolio of Bank of the West, the bank said in a statement Wednesday. It’s the first time Bank of Montreal has reported results that include the San Francisco-based lender, which it bought from BNP Paribas SA for $16.3 billion.
Excluding some items, profit was C$2.93 a share, missing the C$3.21 average estimate of analysts in a Bloomberg survey.
Read More : Bank of Montreal’s Performance Below Expectations as Loan-Loss Set-Asides Increase