The lender reported net income of $2.63 billion in the second quarter, up 34 per cent from last year and higher than analysts surveyed by S&P Global Market Intelligence expected. In a release, BMO credited higher fee revenue across divisions as a major driver for its profit growth. (The Logic)

Talking point: As my colleague Chaimae reported, fees are a significant profit centre for Canada’s big banks. Nearly 48 per cent of banks’ revenue in 2022 came from non-interest income, which includes everyday banking charges, according to the Canadian Bankers Association. That revenue source is coming under pressure, however. Digital competitors like Wealthsimple and EQ Bank have made low fees a major part of their marketing efforts.  Meanwhile, the Real-Time Rail instant payments system, expected to launch this year, could undercut lucrative bank fees from wire transfers and other sources. BMO is planning to use a blockchain operated by Google to issue tokenized versions of cash and bank deposits—an effort to compete with stablecoins, another innovation that threatens bank fee revenue.