Tue, Aug. 25, 7:39 AM
Tue, Aug. 25, 7:32 AM
Mon, Aug. 24, 5:30 PM
Mon, Jul. 20, 10:20 AM
- Continuing a move to beef up its capital markets business, Piper Jaffray (PJC -0.1%) CEO Andrew Duff lands Bank of Montreal's (BMO -0.5%) GKST - the bank's municipal bond sales, trading, and origination business.
- PJC last month also added a group of rainmakers from Sterne Agee (after Sterne's sale to Stifel).
- BMO purchased Griffin, Kubik, Stephens & Thompson in 2008 for about $33M, and its decision to sell follows the exit of a trio of key players at the unit.
- The deal is expected to close in Q4. Terms were not disclosed.
- Source: Press Release
Thu, Jul. 2, 1:59 PM
- Canadian equity financings of C$30.3B were a record, and up 40% from a year ago, according to Thompson Reuters, and Royal Bank of Canada (NYSE:RY) led the way on advisory roles, with Bank of Montreal (NYSE:BMO) and CIBC (NYSE:CM) rounding out the top three.
- The largest deal to-date was Element Financial's C$2B raise, followed by Valeant's C$1.9B.
Fri, Jun. 26, 10:55 AM
- The operation includes more than 200 professionals, about 830 plans, and assets under administration of $26B, and BMO's decision to sell is part of the bank's strategy to focus on its asset management business. BMO will continue to manage a portion of the investments in the plans.
- The buyer is Indianapolis' OneAmerica Financial Partners. Terms were not disclosed and the deal is expected to close in Q3.
- Source: Press Release
Fri, May 29, 2:25 PM
- The last of Canada's big six lenders to report FQ2 results, Bank of Nova Scotia (BNS +1.2%) beat estimates (as did the others), helped by strong action in capital markets. The bank also announced a 24M share buyback.
- “These results were on balance better than I would have expected a few weeks ago, however they’re not strong enough to really serve as much of a catalyst for the stocks,” says Edward Jones' Jim Shanahan. "The stocks are trading cheaper, but given a weaker loan growth outlook and weaker return profiles, that’s probably warranted.”
- RBC Capital is impressed enough with Scotiabank's results to upgrade to Outperform from Sector Perform.
- Checking the scorecard this week: BNS is up 1.2%, while CIBC (NYSE:CM) is down 1.8%, Royal Bank of Canada (NYSE:RY) is down 2.7%, Bank of Montreal (NYSE:BMO) down 3.9%, and TD Bank (NYSE:TD) 4.3%.
- YTD, Scotiabank also leads with just a marginal decline, while the other four lenders are down anywhere from about 8%-13%.
Wed, May 27, 7:53 AM
- Canadian P&C adjusted net income of $487M up 1% Y/Y. Revenue up 4%, expenses of 6%. Personal banking loan and deposit growth of 2% and 6%, respectively. Commercial banking loan and deposit growth of 6% and 8%, respectively.
- U.S. P&C adjusted net income of $176M up 14%. Revenue of $707M fell 1%. Adjusted noninterest expense of $452M about flat. Loan growth of 6% led by C&I loans up 17%.
- Wealth Management adjusted net income of $265M up 34%, thanks to a mixture of organic growth and the acquired F&C business.
- Capital Markets net income of $296M down 3%. Revenue growth up 6% thanks to stronger trading results.
- CET1 Ratio of 10.2% up 10 bps during the quarter.
- Earnings call at 2 ET
- Previously: Bank of Montreal declares $0.82 dividend (May 27)
- Previously: Bank of Montreal beats by $0.05, misses on revenue (May 27)
- BMO flat premarket
Wed, May 27, 7:33 AM
Wed, May 27, 7:31 AM
Tue, May 26, 5:30 PM
Tue, Apr. 21, 1:19 PM
- Bank of Montreal (NYSE:BMO), CIBC (NYSE:CM), Scotiabank (NYSE:BNS), RBC (NYSE:RY), and TD Bank (NYSE:TD) all sold options to U.S. shale drillers looking to hedge against lower prices back when oil was above $90 per barrel. Now they're on the hook for at least $478M, according to Bloomberg.
- National Bank analyst Peter Routledge says it's a sizable liability, but given the heavy regulation of Canadian lenders, it's a pretty good bet they hedged their exposure. If you want to worry about Canadian banks as regards to oil. says Routledge, it's on the lending side, not the capital markets side.
- “We actively hedge and manage our exposures to fluctuations in commodity prices,” says BMO's Anthony DeMartino, head of commodity trading.
Wed, Apr. 1, 9:17 AM
- "It's inevitable that there will be some restructurings of loans that come, but on the other side of that the net will be positive," says Bank of Montreal (NYSE:BMO) CEO William Downe, expecting a pickup in M&A activity thanks to troubles in the oil patch.
- There's going to be a reconfiguration," he tells shareholders at the bank's annual meeting. "We expect to play a part in advising companies in the sector and we also expect to be involved in the financing of ventures that result from this."
- He also notes the price declines in heating oil and gasoline are effectively putting another $20 per week in the pockets of North Americans - "that's net stimulative to the economy."
- Downe says the bank is focused on organic growth, and has no acquisition plans at the moment.
Mon, Mar. 23, 12:29 PM
- The Regional Bank Coalition is urging D.C. to remove the $50B threshold at which, under current Dodd-Frank rules, lenders are subject to boosted regulatory standards.
- The fight thus far has centered on whether to raise that bar (something even the Fed appears to support) or scrap it altogether.
- "Regional banks do not create systemic exposure through market making or complex networks of interconnected transactions with other financial firms," says the group.
- Regional Bank Coalition website
- The group: SunTrust (NYSE:STI), Regions Financial (NYSE:RF), Huntington Bancshares (NASDAQ:HBAN), Fifth Third (NASDAQ:FITB), Capital One (NYSE:COF), BMO Financial (NYSE:BMO), Compass (NYSE:BBVA), BB&T (NYSE:BBT), Bank of the West, and AmEx (NYSE:AXP).
- ETFs: KRE, KBE, IAT, KBWB, QABA, KRU, KBWR, KRS
Tue, Mar. 17, 7:56 AM
- It wasn't long ago when Canadian finance minister Jim Flaherty warned of overheating the housing market when lenders dropped benchmark mortgage rates below 3%. What his successor Joe Oliver might say or do is unknown, but Bank of Montreal (NYSE:BMO) today cuts its 5-year, fixed-rate mortgage by 20 basis points to 2.79% - it would be the lowest posted rate of the country's Big Five banks.
- BMO's move comes as it and others in the industry battle slower consumer loan growth, not to mention drags in other operations thanks to the crash in oil prices, and the bank last month missed FQ1 estimates.
- ETFs: EWC, CNDA, EWCS, FCAN, QCAN
Mon, Mar. 16, 8:40 AM
- Chicago-based BMO Harris Bank says the move - allowing customers to withdraw cash with a smartphone app rather than an ATM card - will allow for the double-whammy of faster transactions and reduced fraud.
- Banks, of course, are under pressure to save money by slashing branch networks while also cutting down on fraud - so this potentially gives BMO a leg up on its competition.
- BMO says a mobile cash transaction takes 15 seconds compared with 45 when using a debit card. It's also safer since the customer doesn't need to insert a card, thus eliminating the change of "skimming" devices pulling information.
- Why roll it out in the States instead of Canada? Card security in this country lags behind that up north.
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