BMO.TO - Bank of Montreal

Toronto - Toronto Delayed Price. Currency in CAD
97.22
+0.61 (+0.63%)
At close: 4:00PM EDT
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Previous Close96.61
Open96.71
Bid97.28 x 0
Ask97.30 x 0
Day's Range96.37 - 97.32
52 Week Range86.25 - 109.00
Volume1,473,805
Avg. Volume1,540,781
Market Cap62.127B
Beta (3Y Monthly)1.32
PE Ratio (TTM)10.28
EPS (TTM)9.45
Earnings DateDec 3, 2019
Forward Dividend & Yield4.12 (4.26%)
Ex-Dividend Date2019-10-31
1y Target Est102.38
  • Jittery Repo Market Has Calmed, But Fed Plans to Intervene Again
    Bloomberg

    Jittery Repo Market Has Calmed, But Fed Plans to Intervene Again

    (Bloomberg) -- Let’s do it again tomorrow.The Federal Reserve made crystal clear that it doesn’t want U.S. money market rates to spike again like they did early this week, announcing it will -- for the third day in a row -- inject cash into this vital corner of finance.On Thursday, the New York Fed will offer up to $75 billion in a so-called overnight repurchase agreement operation, adding another dose of temporary liquidity to restore order in the banking system. It made the same offer Tuesday and Wednesday, deploying a tool it hadn’t used in a decade. This latest action follows the Fed’s reduction in the interest rate on excess reserves, or IOER, another attempt to quell money-market stresses.The prior operations have calmed markets, with repo rates declining Wednesday to more normal levels after jumping to 10% on Tuesday, four times where it was last week.After policy makers wrapped up a two-day meeting, Fed Chairman Jerome Powell said Wednesday that the central bank will keep doing these repo operations if that’s what it takes to get markets back on track. He spoke hours after the effective fed funds rate busted through the central bank’s cap, evidence Powell and his colleagues were losing their grip on one of their most important levers for controlling the financial system.To keep things calm, “the Fed is going to have to keep coming in and doing these operations daily,” said Scott Buchta, head of fixed-income strategy at Brean Capital. “Powell kind of minimized the issues of this week at the press conference, but overall the Fed probably did the best they could do for now to address this. But they will likely need to take more action ahead or at least discuss those plans further at their October meeting.”Powell also said the Fed would provide a sufficient supply of bank reserves so that frequent operations like the ones they’ve done this week aren’t required.“It is certainly possible that we’ll need to resume the organic growth of the balance sheet sooner than we thought,” Powell said, referring to the central bank potentially buying securities again to permanently increase reserves and ensure liquidity in the banking sector.Fed policy makers on Wednesday also lowered their main interest rate for a second time this year.Many strategists had predicted the Fed would take even more aggressive measures to reduce pressures in overnight lending. One idea that’s gotten a fair amount of attention is something called a standing fixed-rate repo facility -- a permanent way to ease funding pressures, as opposed to the ad-hoc operations the Fed has used this week. Many analysts even predicted a Wednesday announcement that the Fed would start expanding its balance sheet.That didn’t happen. However, with the Fed apparently ready to keep injecting liquidity whenever it’s needed, “it’s enough for now,” said Jon Hill of BMO Capital Markets.“Though they didn’t announce a standing repo facility, what they did in essence is set up a ‘sitting’ one that can stand up when it needs to,” Hill said. “The market now knows the Fed will come in during stress conditions. So this will kind of operate in the pressure-valve way that was so needed.”To contact the reporters on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net;Alexandra Harris in New York at aharris48@bloomberg.netTo contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Nick Baker, Mark TannenbaumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • CNW Group

    Media Advisory - BMO Capital Markets Group Head, Dan Barclay, to speak at the CIBC Eastern Institutional Investor Conference

    Media Advisory - BMO Capital Markets Group Head, Dan Barclay, to speak at the CIBC Eastern Institutional Investor Conference

  • PR Newswire

    Bank of Montreal Announces Quarterly Coupon Amount for the Dorsey Wright MLP Index ETN

    NEW YORK , Sept. 18, 2019 /PRNewswire/ - Bank of Montreal (TSX: BMO)(NYSE: BMO) today announced the quarterly coupon amount for the Dorsey Wright MLP Index ETNs due December 10, 2036 (NASDAQ: BMLP) (the ...

  • Fed’s First-in-a-Decade Intervention Will Be Repeated Wednesday
    Bloomberg

    Fed’s First-in-a-Decade Intervention Will Be Repeated Wednesday

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The Federal Reserve took action to calm money markets, injecting billions in cash to quell a surge in short-term rates that was pushing up its policy benchmark rate and threatening to drive up borrowing costs for companies and consumers. The central bank also said it would do more Wednesday.While the spike wasn’t evidence of any sort of imminent financial crisis, it highlighted how the Fed was losing control over short-term lending, one of its key tools for implementing monetary policy. It also indicated Wall Street is struggling to absorb record sales of Treasury debt to fund a swelling U.S. budget deficit. What’s more, many dealers have curtailed trading because of safeguards implemented after the 2008 crisis, making these markets more prone to volatility.Money markets saw funding shortages Monday and Tuesday, driving the rate on one-day loans backed by Treasury bonds -- known as repurchase agreements, or repos -- as high as 10%, about four times greater than last week’s levels, according to ICAP data.More importantly, the turmoil in the repo market caused a key benchmark for policy makers -- known as the effective fed funds rate -- to jump to 2.25%, an increase that, if left unchecked, could have started impacting broader borrowing costs in the economy. Because that’s at the top of the range where Fed officials want the rate to be, they are likely to make yet another tweak to a key part of their policy tool set -- something called the interest on excess reserves rate -- to try to get things back on track when they meet Wednesday to set their benchmarks.But the central bank didn’t wait until then to do something, resorting to a money-market operation it hasn’t deployed in a decade. The New York Fed bought $53.2 billion of securities on Tuesday, hoping to quell the liquidity squeeze. It appeared to help. For instance, the cost to borrow dollars for one week while lending euros retreated after almost doubling Monday.Late Tuesday, the New York Fed said it would conduct another overnight repo operation of up to $75 billion Wednesday morning.For repo traders, hedge funds and others that rely on that market for financing, the intervention came none too soon.“There’s been a sea change in markets, and it’s one the Fed needed to respond to,” said Lou Crandall of Wrightson ICAP. “In the current market environment, there is just not enough elasticity in the repo market to handle the big seasonal swings of the banking system. The Fed needed to come in now and alleviate the immediate problem, while it is also working on long-term solutions.”The central bank has considered introducing a new tool, an overnight repo facility, that could be used to reduce pressure in money markets. No decision has been announced. Another long-term remedy would be growing the Fed’s balance sheet again to permanently increase reserves in the banking system. But for now, if the rate remains elevated, expect more temporary liquidity injections, Crandall said.The New York Fed declined to comment on the events of this week.Actions like the Fed took Tuesday were once commonplace, but stopped being so when the central bank expanded its balance sheet and started using a range of rates to implement its policy in the aftermath of Lehman Brothers’ 2008 collapse.Securities eligible for collateral in the Fed operation include Treasuries, agency debt and mortgage-backed securities. In an overnight system repo, the Fed lends cash to primary dealers against Treasury securities or other collateral.Surges in the repo rate normally occur only at quarter-end and sometimes month-end. This mid-month surge was attributed to a confluence of events that knocked cash reserves in the banking system out of balance with the volume of securities on dealer balance sheets: a corporate tax payment date, settlement of last week’s Treasury auctions, and last week’s bond-market sell-off, in which investors sold securities back to dealers.“This is certainly painful for firms that have to fund positions,” said Thomas Simons, an economist at Jefferies LLC. “So it’s difficult for the dealer community. But it’s not systemically threatening.”Beyond the technical forces driving the spike in repo rates, the move is also a sign that excess reserves in the banking system are dwindling, according to Tom di Galoma, managing director of government trading and strategy at Seaport Global Holdings LLC.“This made the repo market ripe for dislocation,” he said.\--With assistance from Matthew Boesler and Elizabeth Stanton.To contact the reporters on this story: Liz Capo McCormick in New York at emccormick7@bloomberg.net;Alexandra Harris in New York at aharris48@bloomberg.netTo contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Nick Baker, Mark TannenbaumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Thomson Reuters StreetEvents

    Edited Transcript of BMO.TO earnings conference call or presentation 27-Aug-19 11:15am GMT

    Q3 2019 Bank of Montreal Earnings Call

  • CNW Group

    Media Advisory - BMO and Plan International Canada Celebrate International Day of the Girl

    TORONTO , Sept. 16, 2019 /CNW/ - For the second year, BMO Financial Group is participating in Plan International Canada's Girl's Belong Here initiative for International Day of the Girl in the role of Leading Sponsor. Starting today and leading up to International Day of the Girl on October 11 , BMO will be hosting events to provide mentorship and business leadership experience to young women between the ages of 14-23 years. This will include: a roundtable discussion, hosted by Joanna Rotenberg , Group Head BMO Wealth Management, between women leaders and Plan International youth and "seat share" days during which participating girls will temporarily assume the role of BMO executives.

  • Bloomberg

    BMO’s Aim to Double Indigenous Lending Relies on Old-Style Banking

    (Bloomberg) -- A team of Bank of Montreal commercial bankers have traded their suits and ties for Ford F-150 pickups to reach Canada’s remote regions and build up a part of their business that has yet to see a bad loan.Indigenous banking is one area Chief Executive Officer Darryl White targeted in June when he vowed increased support for small-business lending and sustainable finance, as well as inclusiveness and diversity. The Toronto-based bank plans to double the size of its C$4.4 billion ($3.4 billion) book of indigenous commercial loans, deposits and investments by 2025.“We should actually exceed that by a bit,” Stephen Fay, head of indigenous banking, said in an interview at his Toronto office. “I’m confident we can do it just by doing what we’ve done in the past.”Fay thinks he can beat his boss’s target even as he faces competition to reach the indigenous population, Canada’s fastest-growing group, from rivals including Royal Bank of Canada, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce, as well as new entrants such as private lender Bridging Finance Inc. Growth at Bank of Montreal’s division has been about 21% so far this fiscal year, surpassing its historical pace and above Fay’s annual goal of 19%.Bank of Montreal started an aboriginal banking unit in 1992 with Ron Jamieson, a Mohawk from Six Nations Reserve in Ontario, running the business. He led a lean operation in the early years, with a handful of bankers lending, gathering deposits and establishing on-reserve housing-loan programs. Then Fay was tapped for a commercial-banking deal, his area of expertise.“I was able to do an infrastructure deal there,” Fay, 62, said. “It took me about six months of hard work trying to gain their trust, but we were successful and Ron liked how I did it.”Isolated AreasJamieson asked Fay to join his team. Fay has headed the unit since 2009, and now oversees eight dedicated bankers across Canada, who are supported by about 60 account managers along with experts from other parts of the bank.Clients are not always easy for the bankers to reach. In Quebec, for example, Bank of Montreal has on-reserve branches at Wemindji and Waskaganish on the James Bay coast, two remote communities linked by a road that takes eight hours to traverse.“All, with the exception of one, have an F-150 because what I found was the previous vehicles we were giving them when they were going into these remote communities would get damaged on some of the roads,” Fay said.Success requires doing things differently: ditching neckties and forgoing email, and instead traveling to indigenous communities for face-to-face meetings -- and listening, Fay said.“Picking up the phone and using text is not going to work,” he said. “You go into the community and spend time talking to people. You may not even talk about business in the first one or two visits, but you’re going to get to know people and build that trust and then try and find a way to provide value.”Membertou First Nation, an urban Mi’kmaq community of 1,700 on the east coast’s Cape Breton Island, has dealt with Bank of Montreal for almost a decade, a relationship that began with a cold call from Fay, said Mike McIntyre, Membertou’s chief financial officer.Sports ComplexThe two built up a dialogue and the first deal was a C$700,000 loan to buy a garage for housing public-works equipment, McIntyre said. The bank has since provided more than C$20 million for on-reserve housing, fishing boats and a sports complex.“They get it,” McIntyre said. “These guys are sincere and the people they have working for them strictly deal with First Nation banking.”The biggest deal for Bank of Montreal’s indigenous banking unit this year was about C$80 million, involving a real estate development in western Canada. About 70% of the unit’s loans are less than C$20 million. Other areas of banking include providing on-reserve home loans, cash-management services, infrastructure finance and helping indigenous groups with land-claims settlements, which have resulted in trusts that spin off income.The bank has set up 122 on-reserve housing-loan programs, an initiative started in 1995 and designed to permit loans even with Indian Act restrictions on land ownership and mortgages. Under the programs, the borrowing risk falls to both the bank and the community.Indigenous banking has also proven to be a low-risk venture, more akin to lending to cities and other governments since the main borrowers are the band or wholly owned entities.“We’ve had no write-offs and, if you ask the other banks, they’ll tell you the same thing,” Fay said. “We look at First Nations or indigenous governments as a government: They’ve got elected chiefs and councils, they are here for the long haul and are not going to go away.”To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.netTo contact the editors responsible for this story: Michael J. Moore at mmoore55@bloomberg.net, ;David Scanlan at dscanlan@bloomberg.net, Daniel Taub, Jacqueline ThorpeFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • CNW Group

    BMO Capital Markets' Fixed Income Strategy Group Earns Top Rankings from Institutional Investor

    BMO Capital Markets' Fixed Income Strategy Group Earns Top Rankings from Institutional Investor

  • Financial Times

    KGHM chief keen to move on from past setbacks

    It was the most ambitious overseas acquisition by a Polish company — and it has not gone according to plan. hit the cash-flows from KGHM’s new assets, triggering a slump in its share price. Seven years on, the Sierra Gorda mine in Chile that came with the deal is still lossmaking, and KGHM’s market capitalisation is around half the 28bn zloty it was in 2012.

  • CNW Group

    BMO Introduces a Fully Digital Line of Credit Solution to Accelerate the Lending Experience for Mobile Customers

    TORONTO , Sept. 10, 2019 /CNW/ - BMO Bank of Montreal announced the launch of a new lending solution which provides customers the simplicity of applying for a personal line of credit directly from their mobile devices. "Canadians continue to turn to their mobile devices for their day-to-day banking. A true digital experience: An application can be completed from a mobile device through a simple digital interface.

  • CNW Group

    Bank of Montreal Announces Subordinated Note Issue

    TORONTO , Sept. 9, 2019 /CNW/ - Bank of Montreal (BMO.TO) (BMO) today announced a domestic public offering of $1.0 billion of subordinated notes (Non-Viability Contingent Capital (NVCC)) (the "Notes") through its Canadian Medium-Term Note Program. BMO Capital Markets is acting as lead agent on the issue. The Bank may, at its option, with the prior approval of the Office of the Superintendent of Financial Institutions Canada (the "Superintendent"), redeem the Notes on or after September 17, 2024 , at par, in whole at any time or in part from time to time, on not less than 30 days' and not more than 60 days' notice to registered holders, at a redemption price that is equal to par, together with accrued and unpaid interest to, but excluding, the date fixed for redemption.

  • Benzinga

    Cannabis Countdown: Top 10 Marijuana Stock News Stories Of The Week

    Cannabis Countdown: Top 10 Marijuana Stock News Stories of the Week Welcome to the  Cannabis Countdown . In this week’s rendition, we’ll recap and countdown the top 10  marijuana stock news  stories for ...

  • Team Belgium Claim Victory in the 2019 BMO Nations' Cup at Spruce Meadows
    CNW Group

    Team Belgium Claim Victory in the 2019 BMO Nations' Cup at Spruce Meadows

    Team Belgium Claim Victory in the 2019 BMO Nations' Cup at Spruce Meadows

  • Benzinga

    Bank Of Montreal Forbids Shorting Cannabis Stocks Due To High Volatility

    One of the biggest banks in Canada, Bank of Montreal (NYSE: BMO), does not allow investors to short cannabis stocks, according to the Financial Post. The bank has reportedly blocked the option of shorting cannabis stocks through its InvevstorLine brokerage to at least four retail investors. The investors were unable to examine another option to short those stocks with the Bank of Montreal.

  • Bank of Canada Balks at Joining the Global Rate-Cutting Trend
    Bloomberg

    Bank of Canada Balks at Joining the Global Rate-Cutting Trend

    (Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. The Bank of Canada resisted pressure from investors to signal it will soon follow global peers in easing monetary policy.At a decision Wednesday, policy makers left interest rates unchanged for a seventh straight meeting and surprised markets by asserting current levels of stimulus are still appropriate despite the escalating trade war between China and the U.S..The Bank of Canada’s reluctance to signal a greater willingness to cut rates has made the central bank an outlier as counterparts around the world ease policy. Investors and analysts had expected more dovish language, paving the way for some easing later this year. The Canadian dollar rose after the statement.“This is a bit more hawkish than we anticipated,” said Brett House, deputy chief economist at Bank of Nova Scotia.To be sure, the door is still open for increased stimulus given how much the central bank underlined trade risks. Policy makers also said Canadian growth is likely to slow in the second half of this year. Investors are anticipating the Bank of Canada will eventually be forced to join other central banks like the Federal Reserve in cutting rates, as soon as next month.‘Note Committing’But Wednesday’s statement suggests the central bank remains reluctant to show its hand on the matter, preferring instead to wait for more concrete signs of weakness before moving.“The Bank is not committing to anything,” Doug Porter, chief economist at Bank of Montreal, said in a note to investors.The Canadian dollar rose 0.8% to C$1.3237 per U.S. dollar at 12:14 p.m. Swaps trading suggests investors are fully pricing in a cut by December, with strong odds of a second reduction by this time next year. That’s still less than the four rate cuts priced by the Federal Reserve over that time.Canada’s benchmark S&P/TSX Composite Index pared an earlier gain to 0.5% after the statement, which the market saw as “largely one of disappointment,” according to Candice Bangsund, portfolio manager at Fiera Capital.The case for cheaper money isn’t as compelling in Canada as it is elsewhere. A strong run of economic data affords the Bank of Canada opportunity to resist -- as it has so far -- the dovish turn in global policy.Interest rates also remain stimulative in real terms, even with the Bank of Canada on hold, mortgage rates have already fallen sharply in recent months because of the decline in global bond yields. In other words, there is plenty of stimulus in the system that the Bank of Canada already needs to keep in mind -- a development the Bank of Canada cited in its statement.“In sum, Canada’s economy is operating close to potential and inflation is on target. However, escalating trade conflicts and related uncertainty are taking a toll on the global and Canadian economies,” the central bank said in its statement. “In this context, the current degree of monetary policy stimulus remains appropriate.”Global OutlookBut escalating tensions between China and the U.S. are hard to overlook. The trade war is impacting global economic momentum more than it had projected in July, and driving lower commodity prices, the Bank of Canada said. So, officials will need to pay close attention to “global developments and their impacts on the outlook for Canadian growth and inflation.”Waiting too long is a risky strategy, however. It could backfire if policy makers are late to recognize spillover effects on businesses and households, particularly since the country’s outlier status on policy could potentially fuel gains in the Canadian dollar.“The Bank of Canada is stalling but it will eventually be peer-pressured into interest-rate cuts,” Frances Donald, chief economist at Manulife Investment Management Ltd., told BNN Bloomberg.(Updates with market reaction, comment in 9th paragraph.)\--With assistance from Erik Hertzberg and Divya Balji.To contact the reporter on this story: Theophilos Argitis in Ottawa at targitis@bloomberg.netTo contact the editors responsible for this story: Theophilos Argitis at targitis@bloomberg.net, Chris Fournier, Stephen WicaryFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • CNW Group

    BMO Housing Survey: Over 40 Per Cent of First-time Home Buyers Believe Now Is a Good Time to Buy

    TORONTO , Sept. 3, 2019 /CNW/ - According to a new survey released today by BMO, first-time home buyers generally have a positive outlook on the housing market. Across Canada , first-time buyers in Alberta are the most optimistic with over 50 per cent believing it is a good time to buy.

  • August Chaos Has U.S. Treasury Returns Set for Post-Crisis Highs
    Bloomberg

    August Chaos Has U.S. Treasury Returns Set for Post-Crisis Highs

    (Bloomberg) -- A chaotic month of trade warfare, recession fears and broadening political turmoil has set U.S. government bonds on track for their strongest monthly return since the heat of the 2008 crisis.With just one more session to go until August’s market turmoil can be fully accounted for, the Bloomberg Barclays U.S. Treasury index has gained 3.33%, more than in any month since December 2008. It returned 3.39% that month as the Federal Reserve slashed interest rates by a further 75 basis points to stabilize the economy following the collapse of Lehman Brothers. The U.S. 10-year yield plummeted 71 basis points over the month, to 2.21%.This month, five straight weekly declines have trimmed nearly 50 basis points from the benchmark’s yield, to about 1.50%. It came within 13 basis points of its 2016 record low on Aug. 26, touching 1.441%.Concern that trade protectionism will hurt the U.S. economy has been a driving force of these late-summer moves, possibly exacerbated by thin trade. The yield curve is inverted, with the 10-year yield trading 2 basis points below the two-year, in a signal that’s preceded every recession since the 1960s. And declining European yields have pulled the U.S. market further along. The German 10-year fell to record lows near -0.73%, and the U.K. 10-year breached its 2016 lows, falling to 0.404%.From this vantage point, possible catalysts abound for further volatility and Treasury gains in the months ahead. Hong Kong’s protests continue to escalate with police threatening more arrests. And while U.K. parliament may have no say in the matter, that’s hardly going to detract from turbulence in the lead-up to the Oct. 31 deadline for the U.K.’s exit from the European Union. In the immediate future, the next round of tariffs on Chinese goods are activated this weekend, and markets are prone to jumping at every turn in negotiations.“If the experience of the last 421 days has been any guide, there is still room for things to get worse before they get better,” BMO strategist Ian Lyngen wrote in a note to clients Friday.At least trading desks will be fully staffed and ready to spring into action next week. Expectations remain high that the Fed will come through with rate cuts should global economic risks seep into U.S. data. So far, Chairman Jerome Powell -- who is slated to speak in Zurich on Sept. 6 -- has offered no push-back to the market’s expectations for another 25-basis-point easing next month. And memories of the surge of volatility at the end of 2018 and increased market strains “will surely inform the FOMC’s mindset during the jaunt across the monetary policy tightrope on September 18,” Lyngen wrote.To contact the reporter on this story: Emily Barrett in New York at ebarrett25@bloomberg.netTo contact the editors responsible for this story: Benjamin Purvis at bpurvis@bloomberg.net, Elizabeth Stanton, Jenny ParisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • CNW Group

    BMO Bank of Montreal Named Best Commercial Bank in Canada

    TORONTO , Aug. 30, 2019 /CNW/ - BMO has been awarded Best Commercial Bank in Canada , 2019 by World Finance Magazine. BMO has received the distinction from the international publication for five consecutive years. The 2019 World Finance Banking Awards recognized BMO's strong client centric strategy, investment in digitization, diverse product offering and holistic understanding of its commercial clients' banking needs.

  • Moody's

    Port Authority of New York and New Jersey -- Moody's affirms P-1 ratings of Port Authority of New York and New Jersey's Commercial Paper Series A, B, and C

    Moody's Investors Service has affirmed the P-1 ratings assigned to the Port Authority of New York and New Jersey's (PANYNJ, or Port Authority) Commercial Paper Series A ($250 million authorized), Commercial Paper Series B ($250 million authorized), and Commercial Paper Series C ($250 million authorized).

  • U.S. Corporate Bonds Are Having the Best August in Four Decades
    Bloomberg

    U.S. Corporate Bonds Are Having the Best August in Four Decades

    (Bloomberg) -- Investors in debt from blue-chip U.S. companies are on track for the best August in 37 years as corporate bonds benefit from the rally in Treasuries.High-grade bonds returns stand at 3.3% so far this month, heading for the best August since 1982, according to data compiled by Bloomberg. This year, the bonds have gained the most of all major fixed-income assets with 14.1%. That’s the best return at this point of any year since 2009.The surge comes as investors shy away from the riskiest assets amid global economic growth concerns and the U.S.-China trade war, while also seeking returns in a negative-yielding world.“There’s a global up-in-quality trade that we continue to see,” said Scott Kimball, a portfolio manager at BMO Global Asset Management. “So absent a real weakening in the U.S. growth story, U.S. investment grade is probably going to continue to be pretty well supported.”Falling Treasury yields are driving much of the performance in investment grade, according to Peter Tchir, head of macro strategy at Academy Securities.“Returns really can come from two components, the interest rate component and the credit component and really what we saw was a really strong performance from the interest rate component,” Tchir said during a phone interview with Bloomberg News.The average yield on the riskier blue-chip company debt was lowest since May 2013 last week. Bank of America Corp. also cited negative yields prevalent in much of the developed world as a driving force in corporate bond performance.While trade tensions and central bank easing have propelled a lot of the move in rates, perhaps the most important factor is the growth in the amount of negative yielding debt globally that has made U.S. fixed income look much more attractive to foreign investors, said Jon Duensing, director of investment-grade credit at Amundi Pioneer. There’s now more than $16 trillion of debt with yields below zero, according to Bloomberg Barclays index data.Given the trade dispute between Washington and Beijing, “I think it’s hard for high grade to rally much more but I don’t think we are going to have a big sell-off in September either,” Tchir said.\--With assistance from Molly Smith.To contact the reporter on this story: Caleb Mutua in New York at dmutua@bloomberg.netTo contact the editors responsible for this story: Nikolaj Gammeltoft at ngammeltoft@bloomberg.net, Christopher DeReza, James CrombieFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Bank of Montreal (BMO) Q3 2019 Earnings Call Transcript
    Motley Fool

    Bank of Montreal (BMO) Q3 2019 Earnings Call Transcript

    BMO earnings call for the period ending June 30, 2019.

  • Benzinga

    Bank Of Montreal Reports Q3 Earnings Beat

    Bank of Montreal (NYSE: BMO ) reported third-quarter earnings of $1.80 per share, which beat the analyst consensus estimate of $1.67 by 8.32%. This is a 0.6% decrease over earnings of $1.82 per share from ...

  • Scotiabank Latam Push Outpaces Bank of Montreal U.S. Efforts
    Bloomberg

    Scotiabank Latam Push Outpaces Bank of Montreal U.S. Efforts

    (Bloomberg) -- Bank of Nova Scotia’s focus on Latin America proved a better bet than Bank of Montreal’s U.S. push in the fiscal third quarter.Scotiabank’s earnings topped analysts’ estimates on a surge in profit in its international-banking division, fueled by a sharpened focus on Latin America, and lower provisions for loan losses. Bank of Montreal, meanwhile, fell short of expectations amid greater set-asides for bad loans and more muted growth at its U.S. personal-and-commercial banking division.“Scotia’s beat against expectations was almost the polar opposite of BMO’s this morning: better-than-expected provisions, largely reflecting reversals of previous provisions on performing loans,” Barclays Plc analyst John Aiken said Tuesday in a note to clients. “The largest beneficiary is the international segment.”Scotiabank shares gained 0.9% to C$68.39 at 12:18 p.m. in Toronto, while Bank of Montreal plunged 4.1% to C$88.59, its steepest intraday decline since February 2016. Scotiabank is up 0.5% this year, compared with Bank of Montreal’s 0.7% decline and the 3% gain for Canada’s eight-company S&P/TSX Commercial Banks Index.At Scotiabank, the international-banking division earned C$902 million ($682 million), up 90% from a year ago, when results were pared by acquisition costs. Adjusted profit in the division was up 20%, the biggest gain among the Toronto-based lender’s three main segments. Chief Executive Officer Brian Porter has been focusing on the stable Latin American markets of Mexico, Chile, Colombia and Peru, with a recent acquisition in Chile helping drive growth as the bank retreated from other areas.At smaller competitor Bank of Montreal, which has focused on the U.S. for greater growth under CEO Darryl White, the earnings increase at its U.S. personal-and-commercial unit, which includes Chicago-based BMO Harris Bank, cooled to 1.1%. That was the smallest expansion since the fourth quarter of fiscal 2017 and was due to higher loan losses and declining net interest margins. Still, profit from the Toronto-based bank’s overall U.S. operations, which include capital markets and wealth management in the country, was up 17% from a year ago.‘Strong Level’“Our growth in U.S. personal and commercial has really been very, very good over the last few years, and well in excess of peers,” Chief Financial Officer Tom Flynn said in an interview. “We’ve talked about expecting some moderation from the very strong level of growth we’ve had as a reasonable thing to expect, and we’re confident in our ability to continue to outperform peers.”Bank of Montreal expects to do better than its peers in the U.S. even amid an economic backdrop hampered by trade uncertainties, an issue White flagged during a conference call with analysts.“It’s hard to ignore the fact that the trade tensions are creating, first of all, volatility in the markets, as you know well, but also some suppression of growth,” White said. “Our customer base in Canada and the U.S. continues to spend and continues to expand, I would say, a little bit more prudently than perhaps they might have six or 12 months ago.”Scotiabank had adjusted earnings of C$1.88 a share for the three months through July 31, topping analysts’ average estimate of C$1.85, while Bank of Montreal’s adjusted earnings of C$2.38 fell short of the C$2.49 estimate. The miss was driven by higher loan-loss provisions as Canadian consumer losses rose with the migration to a new collections platform, the bank recorded a single large loss from an impaired Canadian commercial loan in the health-care sector and set-asides for performing loans were increased.Loan Losses“Our loan losses were up in the quarter and they were up from low levels in the last two quarters,” Flynn said, adding that that the prior quarters benefited from recoveries. “We do expect the loan losses to be down from the current level that we had in the third quarter as we look out to the fourth quarter.”Bank of Montreal also said Tuesday that it’s winding down its property and casualty reinsurance operations.“In light of the environment in the reinsurance sector, performance is no longer meeting our risk-return expectations and so we’ve made the strategic decision to exit the majority of this business,” White said on his company’s call.(Updates with analyst, executive comments starting in third paragraph.)To contact the reporter on this story: Doug Alexander in Toronto at dalexander3@bloomberg.netTo contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net, ;Michael J. Moore at mmoore55@bloomberg.net, Daniel Taub, Josh FriedmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Scotiabank's international strength buffers it from provisions that hit rival BMO
    Reuters

    Scotiabank's international strength buffers it from provisions that hit rival BMO

    Scotiabank's shares rose 1.7% to C$68.90 in morning trading in Toronto, while BMO dropped 3.3% to C$89.33, its lowest since Jan. 7. Banks in Canada are seeing increased credit provisions on elevated household debt-to-income ratios and struggles in the oil and gas sector, while margins and capital markets businesses face pressure from a global economic slowdown and trade uncertainties. BMO reported a 64.5% jump in loan-loss provisions of during the quarter from a year ago.