TORONTO — BMO Financial Group shares came under pressure after the bank reported results that missed expectations on higher loan-loss provisions and U.S. growth issues.
"Some individuals and businesses are being impacted by prolonged higher interest rates and a slowing economy," he said on an earnings call on Wednesday. On an adjusted basis, BMO says it earned $2.59 per diluted share, down from an adjusted profit of $2.89 per diluted share in the same quarter last year.BMO shares were trading down $8.59, or 6.55 per cent, to $122.51 as of mid-morning on the Toronto Stock Exchange, despite raising its quarterly dividend by four cents to $1.55.
He said the bank expects impaired provisions to stay around current levels for the next couple of quarters on slower Bank of Canada rate cuts, which is having a bigger effect on consumers than some had expected. "For the last 18 months, you've seen freight rates have remained at an all-time low, volumes haven't picked up. If you look at the American tonnage index, that's been at a low point. And resell values, because of oversupply, have also been impacted."