Bank of Montreal (BMO) has reported a fiscal first quarter profit of $247 million, which is down 92% from $2.93 billion recorded in the same quarter a year earlier.
The lender blamed the steep profit decline on a one-time charge related to its acquisition of U.S. financial institution Bank of the West.
Bank of Montreal’s fiscal Q1 profit equaled $0.30 per share for the quarter ended January 31, 2023, compared with a profit of $4.43 per share a year earlier.
Revenue in the latest quarter totalled $6.47 billion, down 16% from $7.72 billion a year ago.
Analysts had expected Bank of Montreal to report a fiscal Q1 profit of $3.16 per share, according to Refinitiv data.
The bank set aside $217 million for credit losses during the quarter compared with a recovery of $99 million the previous year.
Bank of Montreal’s latest results included a pre-tax loss of $2.01 billion related to its purchase of Bank of the West, which closed on February 1 of this year.
Bank of Montreal’s stock has declined 10% over the past year to $130.82 per share.