Canada’s BMO misses profit on high loan loss provisions, US weakness

May 29 (Reuters) – Canadian lender Bank of Montreal (BMO.TO), opens new tab on Wednesday missed analysts’ estimates for quarterly profit, hurt by weakness at its U.S. segment and as it sets aside more funds to cover for potentially souring loans in a high interest rate environment.

The U.S. segment, which bring in roughly about a third of BMO’s total income, has been a key market for the lender as it splurged $16.3 billion to acquire regional lender Bank of the West last year that helped expand its network to add 1.8 million customers and 500 branches on the west coast.