BMO is expected to report a profit of $3.1 billion after posting record earnings and a boost in revenues, as investors buy into the bank’s long-term prospects and its reputation.
The stock rose 4.7% after hitting its record high of $16.70 per share on Thursday.
The bank said it expected to make a net loss of $2.5 billion in the first quarter, a decline of more than 30%.
Bank of Montreal stock has gained more than 10% since mid-June, when it hit its record-low of $8.45 per share.
The company said its balance sheet rose $1.3 billion in 2016 and that it expected the balance sheet to grow in 2017.
BMO has been criticized for a lack of accountability and poor transparency following the bank-sponsored home loan program, which the bank ended last year.
Bank of Canada Governor Mark Carney said in February that the bank has learned from the mistakes made during the program, and that the government’s decision to cut the program’s funding rate to 0.5% in 2017 will have “no impact” on the bank.
“We’re not going to be forced into doing a whole lot of things that we’ve never done before,” he said at the time.
BNEF shares fell by more than 8% on Thursday, after the bank reported record earnings of $1 billion and a surge in revenues.
The Bank of England’s rate-setting Monetary Policy Committee has already cut its inflation forecast to 0%.
BMO shares rose 2.7%, the biggest rise since April.
The fund, which was founded in 1896, is the largest single-asset investment in Canada.
Bankruptcy judge John Cavanagh said Thursday that BMO should have been able to pay back $2 billion of the loan, or about $8 billion, but it had been too optimistic about its ability to repay that money.
“The failure of the Bank of Newfoundland and Labrador to pay the loan has caused BMO to lose $2 million, a figure that does not represent the full loss that BNLC has incurred,” Cavanag said.
The judge said the bank should have foregone $2 in a bid to reduce its financial losses, rather than make the decision to default on the loan.
Bank shares rose 8.5%, after a record-breaking day that included the Bank’s first-ever quarterly profit.
The Canadian dollar weakened against the U.S. dollar after the news broke, hitting a low against the greenback of $0.7360, up from $0