Marshall & Ilsley Corp.'s (MI) first-quarter loss widened
slightly as loan-loss provisions declined but revenue slid ahead of
the company's planned acquisition by Bank of Montreal (BMO,
BMO.T).
Shares rose 2.1% to $8.34 after hours. As of the close, it had
risen 18% so far this year.
The Wisconsin-based regional bank posted its 10th-straight
quarter in the red. Like many lenders, improvement in M&I's
loan books have allowed it to set aside less to cover potential
loan losses, boosting its bottom line.
The struggle to turn a profit, along with the $1.72 billion in
bailout funds it still owes the U.S. government, were key reasons
it agreed in December to the $4.1 billion stock takeover by Bank of
Montreal. The suitor has said it will repay the Troubled Asset
Relief Program government funds when the deal closes.
In the latest period, loan-loss provisions were $418.8 million,
down 8.6% from $458.1 million a year earlier.
Marshall & Ilsley reported a loss of $116.6 million,
compared with a year-earlier loss of $115.4 million. The per-share
loss was flat at 27 cents. Revenue, the sum of net interest income
and non-interest revenues, fell 15% to $538.6 million.
Analysts polled by Thomson Reuters most recently forecast a loss
of 18 cents on $552 million in revenue.
Net charge-offs, loans lenders don't think are collectible, rose
to 4.8% of average loans from 3.9% a year earlier. Nonperforming
loans, those near default, fell to 4.5% from 4.6%.
-By Matt Jarzemsky and Nathan Becker, Dow Jones Newswires;
212-416-2855; nathan.becker@dowjones.com