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However, bad loans in the energy sector shot up in the first
quarter, reflecting the impact of a collapse in the oil price
and signaling that the Canadian banks were not immune to the
oil-related slowdown in Western Canada.
Gross impaired loans in the oil and gas sector jumped C$162
million ($118.15 million), from none recorded in the
year-earlier period and C$102 million in the fourth quarter.
Provisions for that sector's credit losses climbed to C$22
million from virtually zero a year earlier.
Energy sector loans form 2 percent of BMO's total loan
portfolio, and the oil-producing province of Alberta makes up
about 6 percent of its loan book. Net income for the first
quarter ended Jan. 31 was C$1.07 billion, or C$1.58 per share,
compared with C$1 billion, or C$1.46 per share, a year earlier.
Excluding special items, earnings were C$1.75 per share.
Analysts on average had expected C$1.72 a share, according to
Thomson Reuters I/B/E/S. The company recorded a 31 percent
increase in earnings at its U.S. personal and commercial banking
division and an 18 percent rise at its capital markets unit.
Canadian retail banking earnings were 5 percent higher, while
net income fell at its wealth management unit.
($1 = 1.3711 Canadian dollars)
(Reporting by John Tilak; Editing by W Simon)
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