BMO Financial wealth management unit has reported a net income of C$291m ($218.9m) for Q1 2020, a 22% surge from the same quarter in 2019.
Wealth management reports growth
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The wealth management division’s adjusted net income, which excludes the amortisation of acquisition-related intangible assets, jumped 21% to C$300m from C$m.
In traditional wealth, reported net income increased 21% to C$209m from C$173m while adjusted net income soared 19% year-on-year to C$218m. The growth was said to be due to higher revenue and lower expenses.
Total revenue at the wealth management arm dropped to C$2.02bn from C$2.14bn over the period.
Stronger equity markets and favourable foreign exchange resulted in a 9% rise in assets under administration (AuA) and a 10% growth in assets under management (AuM).
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By GlobalDataThe AuM was C$482.27bn at the end of January 2020 versus C$438.54bn in the prior year. The AuA increased to C$410.54bn from C$377.53bn.
Group highlights
At a group level, both the firm’s reported and adjusted net income increased 5% to C$1.59bn and C$1.62bn, respectively.
The group’s revenue increased to C$6.75bn from C$6.52bn.
BMO Financial Group CEO Darryl White said: “We had a strong quarter, delivering adjusted earnings per share of $2.41, with 8% year-over-year revenue growth, 16% pre-provision, pre-tax earnings growth and 5% net income growth.”
White added: “Capital Markets had a strong quarter in all businesses, demonstrating its earnings potential, with an increased contribution from our U.S. segment resulting in 38% total net income growth. Wealth Management and U.S. P&C also performed well, delivering positive operating leverage with both revenue growth and disciplined expense management.”
