BMO Financial’s wealth management arm has reported net income of C$296m ($229.9m) for the second quarter of fiscal 2018, an increase of 17% compared to C$254m ($197.3m) reported a year ago.
The unit’s adjusted net income, which excludes the amortisation of acquisition-related intangible assets and acquisition integration costs, was C$307m for the quarter ended 30 April 2018, up 12% from C$275m in the corresponding quarter of 2017.
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Traditional wealth reported net income soared 26% to C$227m from C$181m last year, while adjusted net income in traditional wealth increased 18% year-on-year to C$238m.
Compared to the previous year, the division’s total revenue dropped 15% to C$1.58bn.
The unit’s assets under management and administration totalled C$439bn at the end of 30 April 2018, up 2% from last year. The rise was due to market appreciation and growth in client assets, the bank said.
Overall, the banking group posted a net income of C$1.25bn for the second quarter of fiscal 2018, flat compared to the same period last year. The results were affected by an after-tax restructuring charge of C$192m mainly related to severance costs.
The banking group’s adjusted net income was C$1.46bn, up 13% from the previous year.
BMO Financial Group CEO Darryl White said: “BMO’s results this quarter demonstrate strong performance and momentum in our U.S. and Canadian P&C banking and wealth businesses, which drove adjusted earnings per share of $2.20, up 15% from a year ago, and very strong adjusted operating leverage of 3.5%.”
