BMO Profit Surges, Tops Estimates on Strong Lending and Lower Credit Costs

Bank of Montreal posted stronger-than-expected fiscal third-quarter results, with adjusted earnings per share rising 22 % from a year earlier to C$3.23, beating the C$2.95 consensus. Adjusted net income increased 21 % to C$2.40 billion, while reported net income climbed 25 % to C$2.33 billion. Revenue rose to C$8.99 billion as higher net interest income and resilient fee businesses offset a softer credit environment. The provision for credit losses fell to C$797 million from C$906 million a year ago. BMO’s capital position remained solid, with a Common Equity Tier 1 ratio of 13.5 % and an adjusted return on equity of 12 %. The bank kept its quarterly dividend unchanged at C$1.63 a share—5 % higher than a year earlier—and said it will seek regulatory approval for a new normal-course issuer bid allowing it to repurchase up to 30 million common shares after terminating its existing 20 million-share program. Chief Executive Officer Darryl White said disciplined cost control and improving credit trends, particularly in U.S. banking operations, supported the quarter. BMO continues to invest in digital and artificial-intelligence capabilities and expects its previously announced acquisition of Burgundy Asset Management to close by year-end, broadening wealth-management offerings for high-net-worth clients.