© Reuters. FILE PHOTO: A sign for the Bank of Montreal in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio/File Photo
(Reuters) -Bank of Montreal on Friday reported a smaller than expected quarterly profit, pressured by rising expenses and as the Canadian lender was forced to set aside more funds to cover for potential loan losses.
A spike in interest rates and high inflation has made it difficult for banks to grow their mortgage and lending businesses, while many consumers struggle to pay the money they owe as bills pile up.
That has pushed banks to put more money aside, a sum that has increased over the quarters this year, pressuring profits amid growing expenses.
Like others, BMO also built up its provisions for credit losses (PCLs) as gloomy economic conditions prompted caution, setting aside C$446 million ($329.74 million) for the fourth quarter ended Oct. 31, from C$226 million a year earlier.
Net income slumped, largely due to its acquisition of U.S. lender Bank of the West, a $16-billion purchase it made earlier this year looking for growth opportunities outside of home.
The inclusion of Bank of the West results decreased earnings by C$317…
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