BMO Financial's Wealth Arm Logs Net Income Rise

Robbie Lawther

31 May 2018

BMO Financial Group’s wealth management arm has reported a net income of C$296 million for the second quarter of 2018, an increase of 17 per cent compared with C$254m reported a year ago.

The wealth unit’s adjusted net income stood at C$307m for the quarter ending on April 30, up 12 per cent from C$275m in 2017.

Traditional wealth reported net income rose 26 per cent to C$227 million from C$181 million last year, while adjusted net income in traditional wealth increased 18 per cent year-on-year to C$238 million.

Compared with the previous year, the division’s total revenue shrunk 15 per cent to C$1.58 billion.

The unit’s assets under management and administration came in at C$439 billion at the end of April 30, 2018, up two per cent from last year.

The firm said the rise was due to market appreciation and growth in client assets.

Overall, the banking group posted a net income of C$1.25 billion for Q2 2018; this was unchanged from last year. The results were affected by an after-tax restructuring charge of C$192 million related to severance costs.