For the third quarter ended July 31, 2010, BMO Financial Group reported net income of $669 million or $1.13 per share. Canadian personal and commercial banking continued to deliver strong performance, with net income of $426 million, up $64 million or 17% from a year ago.
Today, BMO announced a fourth quarter dividend of $0.70 per common share, unchanged from the preceding quarter and equivalent to an annual dividend of $2.80 per common share.
"The focus we are maintaining on helping our customers succeed and our strategic investments in businesses with good growth potential have translated into a solid year-over-year increase in earnings, adding to our already strong capital position," said Bill Downe, President and Chief Executive Officer, BMO Financial Group. "Our results underline the benefit of the bank’s diversified business mix."
"P&C Canada continues to set the pace for the company, with net income of $426 million, up 17% from a year ago. Revenue was up a healthy 9.3%, driven by volume growth across most products. We have seen year-over-year increases in the average number of product categories used by both personal and commercial customers.
"Our commercial business investments have bolstered our success in meeting the needs of our customers and driven both revenue growth and a growing market share for commercial loans, which now stands at more than 20%, rising from a year ago and the preceding quarter.
"Results in BMO Capital Markets this quarter reflected a more difficult capital markets environment, with significantly lower trading results and fewer opportunities across many businesses. We are continuing to build our capabilities and have made recent hires to help position us for growth across key sectors as the market environment improves.
PCG's net income was down slightly as results a year ago included a recovery of prior periods’ taxes. Results were better in most businesses as we continue to deliver the high level of service and advice that our clients expect.
P&C U.S. is focused on customer acquisition and retention. In personal banking, we’re replicating strong offers across the company. We’ve launched Harris Helpful Steps, patterned after BMO’s SmartSteps program, and we’ve successfully completed the integration of the transferred U.S. mid-market clients into our commercial banking model, organizing the business by specialized sectors."
"In summary, our businesses are focused on the promise of delivering great customer experience and we are producing good results, given the current operating environment. While there are some signs of slower economic growth on both sides of the border, we are encouraged that provisions for credit losses improved again this quarter."
Mr. Downe also noted that, "This quarter, BMO became carbon neutral with respect to energy and transportation worldwide. This fulfills – on schedule – a commitment we made to our customers and shareholders nearly two years ago. Sustainability and success go hand in hand, and we are proud to be doing our part."