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Bank of Montreal (TSX:BMO) and Royal Bank of Canada (TSX:RY) recently reported fiscal third-quarter (Q3) 2024 results that had opposite impacts on their respective share prices. Investors looking to add a TSX bank to their portfolios are wondering if BMO stock or RY stock is more attractive right now.
Bank of Montreal
Bank of Montreal trades near $112 at the time of writing. The stock is down about 14% in 2024 and is way off the $152 the stock hit in early 2022.
The decline to the 12-month low near $103 last fall occurred in step with aggressive interest rate hikes by the Bank of Canada and the U.S. Federal Reserve. Rising interest rates are usually good for banks due to the positive impact on net interest margins, but the steep rise in rates over such a short period of time puts borrowers with too much debt in a tight spot. As a result, provisions for credit losses (PCL) soared at the bank, driving…
