06:06 AM EDT, 08/27/2024 (MT Newswires) -- BMO Financial Group on Tuesday reported lower adjusted earnings for the third quarter, reflecting losses in the US P&C, Wealth Management and Corporate Services units.

The bank reported earnings per share of $2.48, compared with $2.12 and adjusted EPS of $2.64, compared with $2.94. Net income was $1,865 million, compared with $1,565 million and adjusted net income was $1,981 million, compared with $2,148 million.

It is difficult to tell if these numbers beat the consensus forecasts at Capital IQ or not as the year earlier numbers for comparison are different between those of the bank and those of Capital IQ, likely reflecting adjusted items.

In the U.S., P&C reported net income was $470 million, a decrease of 6% from the prior year, and adjusted net income was $539 million, a decrease of 7% from the prior year. BMO Wealth Management reported net income was $362 million, down 9% from the prior year, and adjusted net income was $364 million, a decrease of 8%.

Adjusted results in the current quarter and the prior year excluded a number of items including: Acquisition and integration costs of $19 million ($25 million pre-tax) in the current quarter; $370 million ($497 million pre-tax) in the prior year; Amortization of acquisition-related intangible assets of $79 million ($107 million pre-tax) in the current quarter; $85 million ($115 million pre-tax) in the prior year.

Other items included: Impact of the U.S. Federal Deposit Insurance Corporation (FDIC) special assessment of $5 million ($6 million pre-tax) in the current quarter; Impact of a lawsuit associated with a predecessor bank, M&I Marshall and Ilsley Bank, of $13 million ($18 million pre-tax) in the current quarter; a net recovery of $3 million ($4 million pre-tax) in the prior year; and a charge of $131 million ($160 million pre-tax) related to tax measures enacted by the Canadian government that amended the GST/HST definition for financial services in the prior year.

Of other highlights in the current quarter, BMO reported provision for credit losses (PCL) of $906 million, compared with $492 million; adjusted Return on Equity of 10.6%, compared with 12.5%; and s Common Equity Tier 1 Ratio of 13.0%, compared with 12.3%.

"While the cyclical increase in credit costs has resulted in loan loss provisions above our historical range, performance has been supported by operating momentum across our diversified businesses, including continued revenue growth in Canadian Personal and Commercial Banking and stronger client activity in our market-sensitive businesses. Across our U.S. markets, we're adding new customers and expanding capabilities, contributing to consistent pre-provision-pre-tax earnings in our U.S. Segment," said Darryl White, BMO Financial Group CEO, in a statement.

He added: "With our strategic goals firmly in place, a strong balance sheet, robust capital and liquidity, we are well positioned to deliver sustainable returns to our shareholders.

Concurrent with the release of results, BMO announced a fourth quarter 2024 dividend of $1.55 per common share, unchanged from the prior quarter and an increase of $0.08 or 5% from the prior year. The quarterly dividend of $1.55 per common share is equivalent to an annual dividend of $6.20 per common share.