(In paragraph 4, corrects year of deal to 2011 from 2001)
May 29 (Reuters) - Bank of Montreal said on Wednesday that its quarterly net profit fell 5 percent due to restructuring costs and lower net interest margins in its Canadian business.
BMO, Canada’s fourth-largest bank, said it had earned C$975 million, or C$1.42 a share, in the second quarter ended April 30, compared with C$1.03 billion, or C$1.51 a share, a year earlier.
Excluding special items, earnings were C$1.46 a share. Analysts on average had expected C$1.49, according to Thomson Reuters I/B/E/S.
Profit suffered from C$59 million in restructuring costs during the quarter, as well as a sharp drop in income from structured credit assets acquired in the 2011 takeover of Wisconsin lender Marshall & Illsley.
That acquisition roughly doubled BMO’s U.S. branch count to more than 600 and has given the bank a sizeable platform in a recovering area expected to show stronger growth than its Canadian markets, which have been relatively steady in the wake of the financial crisis.
Profit from BMO’s Canadian retail bank slipped to C$430 million from C$433 million, hurt by narrower interest margins as expiring loans were renewed at current rock-bottom rates.
BMO is the fourth Canadian bank to report this quarter and the third to report results that have fallen short of analysts’ estimates. (Reporting by Cameron French and Euan Rocha; Editing by Gerald E. McCormick and Lisa Von Ahn)