Reported net income of $172 million and adjusted net income of $186 million in BMO’s wealth management division have both decreased by 38 percent from a year ago, according to financial results for the fourth quarter ended 31 October 2017.
Meanwhile, traditional wealth reported net income was $180 million compared to $201 million and adjusted net income was $203 million compared to $224 million a year ago. Insurance reported a net loss of $17 million due to the elevated reinsurance claims in the quarter ($112 million) offset by the benefits from favourable market movements and the impact of investment portfolio related changes.
Compared with Q4 2016, net income across the firm was down by nine percent in Q4 2017, at $1,227 million.
Darryl White, chief executive of BMO Financial Group, commented: “BMO finished the year with strong performance, delivering record annual adjusted earnings of $5.6 billion, up 10 percent from last year, and earnings per share of $8.16.
“Earnings growth reflects the benefit of our diversified business mix, including continued momentum in the US segment, which has achieved 13 percent compound growth over the last two years on a US dollar basis, contributing 25 percent of $1.4 billion to bank earnings.”
BMO Financial Group is a financial services provider based in North America, with total assets of $710 billion as of 31 October 2017 and over 45,000 employees. It provides retail banking, wealth management and investment banking products and services to more than 12 million customers.