(Corrects paragraph 7 to say second-quarter ratio was reduced
to 9.7 percent from 10 percent, not to 9 percent from 10
Oct 4 Bank of Montreal, Canada's
fourth-biggest lender by assets, said on Tuesday it had amended
its regulatory capital ratios for the first three quarters of
2016, a move that left the bank holding more risky assets than
it had reported.
BMO said the "correction" resulted from a recalculation of
some of its Basel I components. Basel I rules require banks to
hold a certain amount of capital to minimize credit risk.
Canaccord Genuity analyst Gabriel Dechaine estimated that
BMO's third-quarter risk-weighted assets, reported at about
C$260 billion ($197 billion), would likely be inflated by about
C$12 billion as a result of the restatement.
Barclays analyst John Aiken said the bank would be able to
increase its Common Equity Tier 1 (CET1) ratio through
internally generated capital.
"This will likely mean lower than previously anticipated
dividend growth and no share repurchases for the foreseeable
future," Aiken wrote in a client note, while adding that the
action would not affect Barclays' long-term outlook for BMO.
BMO said its net income, shareholders' equity and CET1 would
remain unchanged for the three quarters.
The company restated its Basel III CET1 ratio for the third
quarter to 10 percent from 10.5 percent. The second quarter
ratio was reduced to 9.7 percent from 10 percent and that for
the first quarter to 10.0 percent from 10.1 percent.
The bank's shares were down 1.6 percent at C$84.45 in midday
($1 = C$1.32)
(Reporting by Arathy S Nair and Sudarshan Varadhan in