Bank of Montreal's fourth-quarter profit rose 21% on stronger personal and commercial banking results and private client group earnings, but results fell just shy of analyst estimates on higher loan-loss provisions and expenses.
The Toronto-based lender's fourth-quarter profit rose to C$897 million or C$1.34 a share from C$739 million or C$1.24 a year earlier.
Adjusted earnings rose to C$1.27 a share from C$1.26, but didn't meet the Thomson Reuters mean estimate of C$1.31 a share.
Loan-loss provisions for Canada's fourth-biggest lender by assets rose to C$290 million from C$253 million. Non-interest expenses were up nearly 20%.
In a statement, Bank of Montreal said 2011 was a "terrific" year for the bank, but said "there is no question that the softening economic environment has had an impact on market conditions and consumer and business confidence."
The bank said it's pleased with its progress on the integration of Wisconsin-based Marshall & Ilsley, which it purchased in early July. The buy more than doubled its U.S. branches to 688.
BMO said personal and commercial banking earnings in Canada and the U.S. were higher, as were private client group earnings. However, capital-markets earnings dropped 30% on weaker and more volatile market conditions.
The bank maintained its quarterly dividend at 70 Canadian cents.
BMO is the first of Canada's big six banks to miss analyst expectations this quarter. National Bank of Canada will round out reporting season for the country's big banks on Thursday.
