Bank Of Montreal Faces A Challenging Canadian Environment
Wed, Jul. 6, 1:26 PM
- Moneris U.S. is a division of Canadian payments processing giant Moneris Solutions, owned by Royal Bank of Canada (NYSE:RY) and Bank of Montreal (NYSE:BMO). The price could be somewhere near $600M.
- Along with Vantiv (NYSE:VNTV), First Data Corp. (NYSE:FDC) has also shown interest, as have private equity shops like Warburg Pincus, Bain Capital, and SIlver Lake.
- The P-E firms have also expressed interest in buying Moneris Solutions for as much as $6B, though that's not currently on the block.
- Second round offers are due in about a week, according to the report.
- A relatively small player in the U.S., Moneris U.S. generates about $45M in EBITDA.
Thu, Jun. 23, 4:51 PM
- Ally Financial (NYSE:ALLY): Actual end of 2015 CET1 ratio of 9.2%, Q1 2018 CET1 ratio under severely adverse scenario of 6.1%, minimum 6.1%.
- American Express (NYSE:AXP): Actual 12.4%, Q1 2018 12.3%, minimum 11.4%.
- Bank of America (NYSE:BAC): Actual 11.6%, Q1 2018 8.1%, minimum 8.1%.
- BNY Mellon (NYSE:BK): Actual 11.5%, Q1 2018 11.2%; minimum 10.5%.
- BB&T (NYSE:BBT): 10.3%, 6.9%, 6.9%
- BBVA Compass (NYSE:BBVA): 10.7%, 6.5%, 6.5%.
- BMO Financial (NYSE:BMO): 11.9%, 5.9%, 5.9%.
- Capital One (NYSE:COF): 11.1%, 8.2%, 8.2%.
- Citigroup (NYSE:C): 15.3%, 9.2%, 9.2%.
- Citizens Financial (NYSE:CFG): 11.7%, 8.8%, 8.8%.
- Comerica (NYSE:CMA): 10.5%, 8.3%, 8.3%.
- Discover (NYSE:DFS): 13.9%, 12.4%, 11.9%.
- Fifth Third (NASDAQ:FITB): 9.8%, 6.8%, 6.8%.
- Goldman Sachs (NYSE:GS): 13.6%, 10.2%, 8.4%.
- HSBC N.A. (NYSE:HSBC): 15.7%, 9.1%, 9.1%.
- Huntington Bancshares (NASDAQ:HBAN): 9.8%, 5%, 5%.
- JPMorgan (NYSE:JPM): 12%, 8.3%, 8.3%.
- KeyCorp (NYSE:KEY): 10.9%, 6.4%, 6.4%.
- M&T (NYSE:MTB): 11.1%, 6.9%, 6.9%.
- Morgan Stanley (NYSE:MS): 16.4%, 10%, 9.1%.
- Northern Trust (NASDAQ:NTRS): 10.8%, 9.6%, 9.6%.
- PNC Financial (NYSE:PNC): 10.6%, 7.6%, 7.6%.
- Regions (NYSE:RF): 10.9%, 7.3%, 7.3%.
- Santander Holdings (NYSE:SAN): 12%, 11.8%, 11.8%
- State Street (NYSE:STT): 13%, 9.6%, 9.6%
- SunTrust (NYSE:STI): 10%, 7.5%, 7.5%.
- TD Group (NYSE:TD): 13.1%, 8.4%, 8.4%.
- U.S. Bancorp (NYSE:USB): 9.6%, 7.5%, 7.5%.
- Wells Fargo (NYSE:WFC): 11.1%, 7.2%, 7.2%.
- Zions (NASDAQ:ZION): 12.2%, 6.6%, 6.6%.
- Previously: All 33 banks pass this year's stress tests (June 23)
Thu, May 26, 8:12 AM| Thu, May 26, 8:12 AM | 1 Comment
Wed, May 25, 12:21 PM
- Alongside an earnings miss this morning, with adjusted income held back by a big rise in loan-loss provisions, Bank of Montreal (BMO +1.8%) plans to cut about 1,850 jobs from its 46K-strong workforce, according to a memo seen by Reuters.
- In the memo, CEO Bill Downe takes note of structural changes in the financial services industry, i.e. new digital technologies.
- Reported FQ2 income was in even lower thanks to a C$132M restructuring charge.
- As for those boosted loan loss provisions - not a surprise, says National Bank's Peter Routledge, who expects similar actions from across the banking sector.
- Previously: BMO eases earnings miss with dividend hike (May 25)
Wed, May 25, 7:46 AM
- FQ2 adjusted net income of $1.152B up 7% Y/Y; adjusted EPS of $1.73 up 8%.
- Dividend is hiked 2% to $0.86 per share.
- Canadian P&C net income of $525M up 8% Y/Y. Personal loan growth of 4% and deposit growth of 7%. Commercial loan growth of 10%.
- U.S. P&C adjusted net income of $279M up 27% Y/Y, in part thanks to BMO TF acquisition.
- BMO Wealth Management adjusted net income of $158M falls from $265M a year ago, thanks to a $79M after-tax write-down of an equity investment. AUM of $817B down 2%.
- BMO Capital Markets net income of $291M down 2% Y/Y, with trading strong, but investment and corporate banking revenue lower.
- Credit loss provisions of $201M up $40M Y/Y thanks to energy and resources.
- Previously: Bank of Montreal misses by C$0.03, beats on revenue (May 25)
- BMO flat premarket
Wed, May 25, 6:53 AM
Wed, May 25, 6:51 AM
Tue, May 24, 5:30 PM
Wed, Apr. 6, 7:47 AM
- "We're not seeing increases in [consumer] delinquencies yet," Bank of Montreal (NYSE:BMO) CEO Bill Downe says at the bank's annual meeting. "There's likely salary continuation among laid-off workers in the oil sector. There are many two-earner families. That sustains people in a downturn."
- Alberta consumers make up 6% of total loans at BMO, with oil & gas industry loans accounting for 2%.
- As for struggling energy companies, he expects most to restructure, rather than fail. "The story of the oil patch is much more a story of restructuring than it is one of failure and default ... That means the strongest companies are going to buy weaker companies." And that, in turn, means more business for BMO.
Wed, Feb. 24, 10:40 AM
- Royal Bank of Canada (RY -5.2%) posted a sizable earnings miss behind declines in investment banking and insurance profits.
- Energy, naturally, is also an issue, and the bank set aside $410M for bad loans, up 52% from one year ago. Impaired loans to oil and gas companies rose to $310M from $156M in FQ4 and just $5M one year ago.
- Bank of Montreal (BMO -3.3%), Scotiabank (BNS -3.9%), CIBC (CM -4%), TD Bank (TD -3.5%)
Tue, Feb. 23, 7:58 AM
Tue, Feb. 23, 7:55 AM
- FQ1 (ended Jan. 31) adjusted net income of $1.178B up 13% Y/Y. Adjusted EPS of $0.30 up 14%. Adjusted ROE of 12.1%. Book value per share up 13% to $59.61. CET 1 ratio of 10.1%.
- Canadian P&C net income of $529M up 5% Y/Y, with revenue up 6%. Expenses higher by 4%. Loan growth of 3%, deposit growth of 5%.
- U.S. P&C adjusted net income of $264M up 29% Y/Y, with revenue up 15%. Adjusted noninterest expense up 13%. Loan growth of 10% Y/Y, with commercial loan growth of 9%.
- Wealth Management adjusted net income of $176M fell from $186M a year ago. While traditional wealth income was about flat, insurance income fell to $22M from $31M thanks to low interest rates and slipping stock prices. Assets under management and administration up 1% to $864B.
- Capital Markets net income of $260M up 18% Y/Y, with revenue up 11%. Excluding impact of strong dollar, revenue was up 6%. Trading market revenues fell only slightly.
- The dividend is held steady at $0.84 per share.
- Conference call at 2 ET
- Previously: Bank of Montreal beats by $0.03, beats on revenue (Feb. 23)
- BMO flat premarket
Tue, Feb. 23, 6:50 AM
Mon, Feb. 22, 5:30 PM
Thu, Jan. 28, 9:14 AM
- The bank (NYSE:BMO) has all regulatory approvals in place to begin the purchase of up to 15M shares of company stock beginning on Feb. 1 and ending on Jan. 31, 2017. That amount of shares is about 2.3% of the float.
Mon, Jan. 4, 3:05 PM
- CIT Group (CIT -1%) rallied in mid-November (but has since fallen all the way back) on chatter of a potential sale, with Bank of Montreal (BMO -3%) mentioned as a possible suitor.
- Canadian lenders make sense, says Mark Palmer, given those banks' excess capital and acquisitive mood. CIT Group offers entry into the U.S. middle market rather than a more risky area like Latin America.
- John Thain's exit from CIT in March - along with the purchase of OneWest Bank - means the rehabilitation of CIT is complete. A purchase of the lender by a Canadian bank would be immediately accretive, and possibly allow the buyer to benefit from the sales of CIT's aircraft and railcar leasing businesses.
- Palmer rates CIT a Buy with $56 price target - about 40% above the current level.
Bank of Montreal provides banking and financial services to individuals and institutions. It operates through three groups: Personal and Commercial Banking, Wealth Management and BMO Capital Markets. The Personal and Commercial Banking is comprised of Personal and Commercial Banking Canada and... More
Industry: Money Center Banks
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