BMO misses estimates as market tumult hits investment banking

Bank of Montreal took a hit in the fiscal fourth quarter as a chill in capital markets weighed on investment banking revenue.

Christinne Muschi/Bloomberg

Profit from BMO Capital Markets fell 33% to C$357 million ($266 million) in the three months through October, the Toronto-based company said Thursday. Overall profit trailed analysts' estimates.

Plunging equity markets have dried up demand for initial public offerings while debt capital markets also have been slow. That has hurt BMO Capital Markets, which saw its investment banking revenue decline as the business was "impacted by current market conditions," the bank said in a statement.

Bank of Montreal shares have fallen 3.5% this year, compared with a 7.5% drop for the S&P/TSX Commercial Banks Index.

Also in the results:

• Net income more than doubled to C$4.48 billion, or C$6.51 a share.
• Excluding some items, profit was C$3.04 a share. Analysts estimated C$3.07, on average.
• Bank of Montreal set aside C$226 million in provisions for credit losses. Analysts projected C$270.4 million.