BMO Financial’s wealth arm sees 27% dip in Q4 income
BMO Financial Group’s wealth management division has reported a net income of C$226m for the fourth quarter of 2014, down 27% from C$311m a year earlier.
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The division’s adjusted net income for the latest quarter dropped to C$253m from C$318m in the fourth quarter of 2013.
The unit’s assets under management and administration grew by C$242bn or 44% from a year ago to C$794bn, with the acquired F&C business contributing C$150bn to the increase.
Excluding F&C, assets under management and administration grew by 17% driven by market appreciation, the stronger US dollar and growth in new client assets, the bank said in a statement.
The bank said that the adjusted net income in traditional wealth was C$136m, up C$8m or 6% resulting from growth of acquired F&C business.
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By GlobalDataFor the fourth quarter of 2014, the bank added that F&C contributed approximately 8% to its wealth management’s revenue, adjusted expenses and adjusted net income for the quarter.
Overall, the group reported fourth-quarter 2014 net income of C$1.07bn, down $4m from the prior year. Quarterly earnings per share dropped to C$1.56 from C$1.60 a year earlier.
The firm recorded net income of C$1.11bn, up 2% or C$1.63 per share for the recent quarter, on an adjusted basis.
