Bank of MontrealNYSE
Tue, Oct. 11, 11:39 AM
- A risk sharing proposal would likely have lenders paying some sort of a deductible when a mortgage goes bad - similar to what car drivers do in a car crash.
- The banks say mortgage defaults are so rare - 5 times lower than the U.S. by one measure - that making lenders share the risk is unnecessary and not worth the costs. “If it’s supposed to be something to improve the quality of underwriting," says the Canadian Bankers Association's Darren Hannah, "Well the quality of underwriting is already very strong.”
- The group - which includes TD, BMO, CM, RY, and BNS - holds its regular meetings with the country's finance department this week, and plans to let its feelings be known.
- Also of interest to Genworth (NYSE:GNW), whose Canadian mortgage insurance unit is the country's second-largest.
Wed, Oct. 5, 10:05 AM
- The Canadian lender is cut to Underperform from Neutral at Credit Suisse.
- Checking the scorecard this year, BMO's performance is roughly inline with three of the other four big Canadian banks. The major outlier is Scotiabank with a 30.7% gain. BMO, CIBC, RBC, and TD Bank are all ahead 12-16%.
Tue, Oct. 4, 12:26 PM
- Capital One Financial upgrades its rating on Liberty Property Trust LPT -0.9% to Overweight from Equal Weight.
- Credit Suisse Group AG downgrades Bank of Montreal BMO -2.2% to Underperform from Neutral.
- Janus Capital JNS -4.6% lower after getting downgraded to Hold from Jefferies group.
- JP Morgan Chase downgrades Reinsurance Group of America RGA -0.4% to Neutral from Overweight.
- Raymond James Financial downgrades Wells Fargo WFC +0.52% to Underperform from Market perform.
Tue, Aug. 23, 7:08 AM
Tue, Aug. 23, 7:04 AM
Mon, Aug. 22, 5:30 PM
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%)