Provision for credit losses (PCL) came in at C$217 million for the quarter, compared with a recovery of PCLs of C$99 million a year earlier. Economic forecasts have turned gloomy over the past year, heightening expectations of a recession, prompting lenders to set aside more capital in case customers fall behind on their loan payments.
Last week, rival Canadian Imperial Bank of Commerce (CIBC) kicked off the reporting season for the country's largest lenders by also building its loss provisions and reporting a drop in quarterly profit.
On an adjusted basis, Bank of Montreal reported a net income
of C$2.27 billion ($1.67 billion), or C$3.22 per share, for the
three months ended Jan. 31, compared with C$2.58 billion, or
C$3.89 per share, a year earlier.
($1 = 1.3581 Canadian dollars)
(Reporting by Manya Saini and Nivedita Balu in Bengaluru;
Editing by Sriraj Kalluvila)
