Bank of Montreal
topped analysts’ fourth-quarter earnings expectations after reporting higher profits in its United States, capital markets and wealth management segments and keeping aside a lower amount of money to tackle loans that may potentially go bad.
Its net income for the three months ending Oct. 31 was $2.29 billion, compared to $2.3 billion during the same period a year ago, resulting in net earnings per share of $2.97.
Its adjusted net income — which removes the impact of non-recurring items — was $2.51 billion, compared to $1.54 billion a year ago, resulting in adjusted earnings per share of $3.28, which was above analysts’ expectations of about $3.04 per share.
BMO also announced it is hiking its dividend by four cents to $1.67 per common share at the end of the first quarter in 2026.
For fiscal 2025, which ended on Oct. 31, the bank reported net income of $8.72 billion, an increase of 19 per cent from the $7.3 billion it earned last year, while its adjusted net income was $9.2 billion, up 24 per cent from last year.
“Fiscal 2025 was a strong year for BMO,” chief executive Darryl White said in a statement on Thursday. “We delivered both robust earnings growth and improved return on equity. We are deploying capital to drive future growth and higher shareholder returns.”
The bank reported adjusted net income of $871 million in its U.S. business segment, up $518 million from the same quarter last year. Its adjusted net income in its Wealth Management and Capital Markets segments increased by 27 per cent and 97 per cent, respectively.
The bank’s total provisions for credit losses (PCLs) — the money banks keep aside to tackle potentially bad loans — in the fourth quarter was $755 million, significantly lower than the $1.5 billion it kept aside during the same period last year. Its PCLs also decreased by $42 million from the third quarter.
“BMO received a relative tailwind in terms of its credit this quarter, with provisions coming in well below expectations as both performing and impaired provisions declined from the third quarter,” John Aiken, an analyst at Jefferies Inc., said in a note.
Matthew Lee, an analyst at Canaccord Genuity Corp., said in a note that BMO’s beat was “driven primarily by better-than-expected U.S. performance featuring a reversal in performing PCLs.”
• Email: nkarim@postmedia.com
BMO beats expectations on higher profits in wealth and capital markets, hikes dividend
2025-12-04 11:55:48
