Bank of Montreal: Q2 2023 financial results: Higher PCLs and expenses ...

BMO's Q2/23 earnings driven by strong loan growth and margin expansion in personal and commercial banking, more than offset by lower earnings in capital markets and wealth management.

Can Limited Recourse Capital Notes Be Wiped Out in Canada à la Credit ...

DBRS Morningstar published a commentary discussing the differences between the limited recourse capital notes (LRCNs) issued by Canadian banks and insurance companies and the AT1 notes issued by Credit Suisse. The commentary explains why Canadian LRCNs will not function in the same manner as the Credit Suisse AT1s in a default scenario and what the implications are for investors. Key highlights include the following: -- LRCNs issued by Canadian financial institutions differ from the AT1s issue...

Canadian Banking Sector: Market Volatility Continues, but Funding Is S...

The Big Six Canadian banks lost approximately $57 billion (or 9.2%) in market capitalization over the past two weeks. We do not view the two significant U.S. bank failures as representative of the Canadian banking sector. Moreover, we do not expect the failure of Silicon Valley Bank (SVB) at this stage to have a significant adverse impact on Canadian banks. Our rating coverage universe of Canadian banks generally has a lower exposure to fixed-income securities, diversified and stable funding, su...

Bank Of Montreal: 1 director

A director at Bank Of Montreal bought 1,166 shares at 85.780USD and the significance rating of the trade was 73/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clear...

Large Canadian Banks Q1 2023 Earnings Round-Up: Resilient Performance ...

Results in Q1 2023 remained resilient for the Big Six Canadian banks despite macroeconomic headwinds. Trading revenues provided a boost to sequential earnings, partially offset by higher provisions for credit losses (PCL) and noninterest expenses (i.e., higher personnel-related costs and technology spend for digital investments and to support growth). As a result, aggregate quarterly adjusted earnings increased 7% quarter over quarter (QOQ) but declined by 2% year over year (YOY) as a result of ...

Canadian Banks (TSX: RY / TD / BNS / BMO / CM) – Bank Stocks Likely to...

Fundamental Research Corp has issued a report entitled “Bank Stocks Likely to Rally After the BoC’s Meeting Tomorrow” and dated March 7, 2023. The full report is now at

Bank of Montreal: Q1 2023 financial results: Lower Capital Markets and...

BMO's Q1/23 earnings driven by strong loan growth and margin expansion in personal and commercial banking, more than offset by lower earnings in capital markets and wealth management.

Large Canadian Banks: Heading into a Challenging 2023 Operating Enviro...

The Canadian banking outlook for 2023 is affected by a challenging operating environment featuring muted economic growth and an increasing likelihood of a recession. Rapid and aggressive aggregate interest rate hikes of 400 basis points during 2022 have, thus far, been unable to significantly tame high inflation while materially increasing borrowing costs. As a result, disposable income is being negatively affected in Canada where high household indebtedness and still-elevated housing prices rem...

Canadian Banking Sector to Remain Resilient Amid Pressure from Elevate...

In the current environment, DBRS Morningstar expects that financial performance and credit quality at Canadian Financial Institutions (FIs) could come under increased pressure in the coming quarters. DBRS Morningstar has released a commentary discussing potential implications of elevated interest rates for the Canadian Banking sector, focusing on the large banks and Desjardins. Key highlights include: -- Due to the lagging impact of monetary policy and continued absorption of systemwide exces...

OSFI Prudently Maintains the Minimum Qualifying Rate Safety Buffer for...

On December 15, 2022, the Office of the Superintendent of Financial Institutions (OSFI) announced that it is maintaining the current Minimum Qualifying Rate (MQR) for uninsured residential mortgages. The MQR is an important measure that OSFI utilizes in ensuring that federally regulated financial institutions (FRFIs) amass safety buffers to improve the resiliency of the financial system. Key highlights include the following: -- Following its December annual review, OSFI maintained the MQR on u...

Large Canadian Banks Q4 2022 Earnings Round-Up: Mixed Bag as Banks Beg...

Earnings for Q4 2022 were a mixed bag for the Big Six Canadian banks as provisioning, higher compensation costs, and spending on operations and digital investments hampered the results of a few banks, while others beat expectations. As a result, aggregate quarterly adjusted earnings relatively stable quarter over quarter and declined by 2% year over year. A major trend that arose during the quarter was increased provisions for credit losses on performing loans, as represented by the 54% increase...

DBRS Morningstar Views OSFI Raising of Domestic Stability Buffer and R...

On December 8, 2022, the Office of the Superintendent of Financial Institutions (OSFI) announced an increase in the Domestic Stability Buffer (DSB) to 3.0% from 2.5% of total risk-weighted assets, effective February 1, 2023, for domestic systemically important banks (D-SIBs). The new requirement will result in a revised minimum D-SIB CET1 capital requirement of 11.0%. Additionally, the total loss-absorbing capital requirement will now be 24.5% (21.5% plus 3.0% DSB). DBRS Morningstar views the i...

Canadian Banks (TSX: RY / TD / BNS / BMO / CM) – Rate Hike Pause Shoul...

Bank of Montreal: Q4 2022 financial results: Robust loan growth more t...

BMO's Q4/22 earnings driven by strong loan growth and margin expansion in personal and commercial banking, more than offset by higher provisions and lower earnings in capital markets.

BMO Adjusted Q4 2022 Results Flat: Revenue Growth Offset by Provisioni...

The Bank of Montreal reported Q4 2022 net income of $4.5 billion, a 228.4% quarter over quarter increase, reflecting higher revenue from fair value management actions related to the announced acquisition of Bank of the West, partly offset by a legal provision related to a lawsuit associated with M&I Marshall and Ilsley Bank.

Aggressive and Rapid Interest Rate Hikes Increase Canadian Residential...

With the Bank of Canada raising its benchmark interest rate by 350 basis points (bps) to 3.75% since March 2022, consumer borrowing costs have increased and, as a result, housing affordability concerns have intensified. With fixed-rate mortgage borrowing costs notably increasing during 2021 and into 2022, the resulting spread between variable- and fixed-rate mortgages has led to a surge in variable-rate mortgages and longer amortizations. Both of these trends expose borrowers to interest rate ri...

BANK OF MONTREAL Flash Note

Bank of Montreal (the Bank) is a Canada-based financial services provider. The Bank provides a range of personal and commercial banking, wealth management, global markets and investment banking products and services. The Bank conducts its business through three operating groups: Personal and Commercial Banking, BMO Wealth Management and BMO Capital Markets. 

Green or Sustainable: Canadian Banks Wade Through Definitions

DBRS Morningstar released a commentary titled, “Green or Sustainable: Canadian Banks Wade Through Definitions.” Key Highlights: (1) The Big 6 Canadian banks have made strides in greening various aspects of their operations as they commit to various government-imposed goals and important global environmental initiatives. Importantly, there is a move to make TCFD disclosures a requirement for all Canadian banks. (2) Issuances of green and sustainable bonds have become more frequent, with the lat...

Large Canadian Banks Q3 2022 Earnings Round-Up: Higher Provisions and ...

The Big Six Canadian banks reported mixed results for Q3 2022 amid an increasingly uncertain operating environment. Aggregate quarterly adjusted earnings declined 5.1% quarter over quarter (QOQ) and 4.8% year over year. Earnings were down QOQ primarily as a result of higher provisions for credit losses (PCL) and lower noninterest income from a drop in trading revenue and underwriting and other advisory fees, partially offset by higher net interest income from volume growth and a 4 basis point ex...

Canadian Banks (TSX: RY / TD / BNS / BMO / CM) – Expecting a Rally Eve...

Fundamental Research Corp has issued a report entitled “Expecting a Rally Even Though More Provisions Coming in Q4” and dated September 2, 2022. The full report is now at