By Matt Grossman

Bank of Montreal Tuesday recorded a profit in the latest quarter as the coronavirus pandemic dragged on loan creation but also led to more deposit growth and stronger trading revenue.

The Canadian bank logged a profit in the fiscal fourth quarter of 1.58 billion Canadian dollars, or about US$1.21 billion. On a per share basis, profit was C$2.37, compared with a profit of C$1.19 billion, or C$1.78 a share, in the same three-month period a year earlier.

On an adjusted basis, the bank's profit was C$2.41 a share. Analysts polled by FactSet had expected an adjusted fourth-quarter profit of C$1.91 a share.

Bank of Montreal's net interest income was C$3.53 billion. Non-interest income was C$2.46 billion. Revenue was C$5.99 billion. Last year, the bank's fourth-quarter revenue was C$6.09 billion. Analysts were expecting revenue of C$5.89 billion.

The Covid-19 pandemic continued to have an impact on the bank's results, it said, leading to higher provisions for credit losses, lower loan growth, and lower interest rates. But it has also helped bring about strong deposit growth, a positive trend for trading revenue and low expense growth. The bank's provision for credit losses in the latest quarter was C$432 million--C$622 million lower than in the third quarter, when the provision was C$1.05 billion.

Interest expense on deposits was C$1.08 billion, down from C$2.2 billion in the prior-year period.

Total gross impaired loans was C$3.64 billion at the end of the fourth quarter, down from C$4.41 billion at the end of the third quarter but up from C$2.63 billion at the end of last year's fourth quarter.

Write to Matt Grossman at matt.grossman@wsj.com

Corrections and Amplifications

This article was corrected at 2:22 p.m. ET because it misstated that Bank of Montreal's revenue in the fourth quarter of 2019 was 6.09 Canadian dollars. Bank of Montreal's revenue in the fourth quarter of 2019 was 6.09 billion Canadian dollars.

(END) Dow Jones Newswires

12-01-20 0649ET