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• Adjusted Net Income: Increased 1% to $2 billion.

• Adjusted Earnings Per Share (EPS): Increased to $2.62, up from $2.59 last year.

• Pre-Provision Pre-Tax (PPPT) Growth: 12% increase.

• Revenue Growth: Increased 9% across all businesses.

• Expenses Growth: Increased 6%.

• Operating Leverage: Positive at 2.7%.

• Common Equity Tier 1 (CET1) Ratio: 13.5%.

• Dividend Increase: $0.04, up 5% from last year.

• Return on Equity (ROE): Improved to 10.6% year to date.

• Net Interest Margin (NIM) Expansion: Up 4 basis points sequentially.

• Loan Growth: Average loans grew 3% year over year on a constant currency basis.

• Customer Deposit Growth: Up 5% from last year, excluding currency impact.

• Trading Revenue: Strong performance, particularly in commodities.

• Wealth Management ROE: 29% year to date, up from 24% a year ago.

• Total Provision for Credit Losses (PCL): $1.1 billion, or 63 basis points.

• Impaired Provisions: $765 million, or 46 basis points, down from prior quarter.

• Warning! GuruFocus has detected 6 Warning Signs with BMO.

Release Date: May 28, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Bank of Montreal (NYSE:BMO) reported a 1% increase in adjusted net income and earnings per share, reaching $2 billion and $2.62, respectively.

• The bank achieved a 12% growth in pre-provision pre-tax earnings (PPPT), demonstrating strong performance across its diversified businesses.

• BMO's capital position remains robust with a CET1 ratio of 13.5%, supporting client needs, growth investments, and shareholder returns through share buybacks and dividend increases.

• BMO Wealth Management delivered a return on equity of 29% year to date, with strong net new asset growth and market share gains in Canadian mutual funds.

• BMO Capital Markets exceeded guidance with strong trading revenue, particularly in commodities, and continued strength in securitization, contributing to a PPPT of $684 million.

Negative Points

• The economic backdrop in North America remains challenging, with GDP growth expected to slow to 1% in Canada and 1.3% in the US in 2025.

• Impaired provisions for credit losses remain a concern, with ongoing uncertainty and volatility in the economic environment related to trade policies.

• BMO's US P&C segment experienced a sequential decline in commercial loan growth, reflecting muted borrowing demand in the market.

• The bank's non-interest revenue was impacted by markdowns in capital markets and a loss on the sale of a US non-relationship credit card portfolio.

• Macro uncertainties have kept demand muted across client segments, affecting business activity and loan demand in both Canada and the US.