Is BMO stock a buy as Bank of Montreal’s profit swells 45% YoY in Q1?

Be the First to Comment Read

Is BMO stock a buy as Bank of Montreal’s profit swells 45% YoY in Q1?

Bank of Montreal (BMO) sees Q1 profit swell 45% YoY. Is it a buy?
Image source: © 2022 Kalkine Media Inc  

Highlights

  • Bank of Montreal (TSX: BMO) is turning heads on the stock markets after reporting its quarterly results for Q1 FY2022 on Tuesday, March 1.
  • The Toronto-headquartered banking company said that it recovered C$ 99 million in provision for credit losses in the latest quarter against a loss of C$ 156 million a year ago.
  • The C$ 93-billion market cap firm’s net profit swelled by 45 per cent YoY to C$ 2.93 billion in the latest quarter.

Bank of Montreal (TSX: BMO) is turning heads on the stock markets after reporting its quarterly results for Q1 FY2022 on Tuesday, March 1.

The Toronto-headquartered banking company said that it recovered C$ 99 million in provision for credit losses (PCL) in the latest quarter against a loss of C$ 156 million a year ago.

Let glance at the financial performance of this bank.

Bank of Montreal (TSX: BMO) financial performance in Q1 FY2021

Bank of Montreal saw its first-quarter net revenue increase to C$ 7.64 billion in 2022 compared to C$ 6.37 billion in Q1 2021. The C$ 93-billion market cap firm’s net profit swelled by 45 per cent year-over-year (YoY) to C$ 2.93 billion in the latest quarter.

Its earnings per share also rose by 46 per cent YoY to C$ 4.43 in the first quarter of fiscal 2022.

Also read: Is CIBC (TSX: CM) a bank stock to buy as its profit soars 15% YoY?

The financial company said that its return on equity (ROE) surged from 15.7 per cent to 21.4 per cent during the latest quarter.

Bank of Montreal (TSX: BMO) Q1 FY2021 results

Bank of Montreal’s stock performance

BMO stock closed at C$ 144.73 per share on Monday, with 2.5 million shares exchanging hands during the session.

The bank scrip expanded by over 39 per cent in 12 months.

Also read: Why Mullen Automotive (MULN) stock soared 146% in a day? 

Bottomline

Bank of Montreal announced to dole out a quarterly dividend of C$ 1.33 apiece to be paid on May 26.

BMO Financial Group CEO Darryl White said that the bank continued to deliver “very strong” earnings in Q1 FY2022, underpinned by its Canadian and U.S. Personal and Commercial business operations and would continue to build on its operating momentum.

 

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

Disclaimer

Speak your Mind

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK