Bank of Montreal profits from structured product trading

Good performance in the structured products trading business has helped Bank of Montreal's (BMO) Capital Markets Group to record growth for the third consecutive quarter, its latest financial reports have revealed.

BMO Financial Group reported a 28% year over year increase despite credit-related losses. In the capital markets division, C$88million pre-tax loss was recorded as a result of mark-to-market valuations on counterparty exposure on derivative contracts, after counterparty credit spreads widened relative to that of BMO's.

Revenue in Capital Markets increased to C$294million to C$715million. Resistant core business have included interest-rate sensitive businesses and FX trading alongside structured products trading in the Trading Products group, explained Bill Downe, president and chief executive officer, BMO Financial Group.

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