May 28, 2024 12:32 GMT
BMO Results 29-May: Markets Revenues, Asset Quality To Feature
FINANCIALS
BMO (BMO: A2/A-/AA-) reports 2Q24 results (12M to Apr-24) on 29-May. Last time, BMO missed on weak capital markets revenues (Scotiabank’s results in this area were weaker today, too) and worsening asset quality. These are likely to be focus areas by expectations are relatively low for this issuer anyway, we feel.
- At last results (27-Feb), there was quite an earnings miss (revenues by 7%, net income by 15%) and did show weaker credit quality, albeit from a strong base position, driven by CRE exposures. Credit quality, alongside the picture of around expectations will be focus areas, especially in light of today’s weaker Scotiabank markets revenues.
- Spreads on its single €IG index bond are 3bp tighter on the month and 31bps tighter YTD (€IG banks -13bp and -50bp) and its equity is broadly flat, similar to Canadian banks (+1.7% vs. +1%).
- Earnings estimates are 8% and 6% lower for this year and next, driven by 3-4% revenue cuts YTD. There was quite an upgrade cycle into last results which was then sharply reversed afterwards.
Results are 1100 (London time) with a conf call at 1300 at: https://www.bmo.com/home/about/banking/investor-relations/financial-information/quarterly-results
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