BMO Reports Strong Q2 2026 Earnings with Significant Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: PRnewswire
- Net Income Growth: BMO reported a net income of CAD 2.63 billion for Q2 2026, a 34% increase from CAD 1.96 billion in the prior year, with EPS rising from CAD 2.50 to CAD 3.53, indicating a significant improvement in profitability that boosts investor confidence.
- Strong Capital Markets Performance: The Capital Markets segment saw a 47% increase in net income to CAD 638 million, primarily driven by higher revenues in Global Markets and Investment Banking, reflecting the company's ability to capitalize on market volatility and further solidifying its market position.
- Dividend Increase: BMO announced a quarterly dividend of CAD 1.71 per share for Q3 2026, up 2% from the previous quarter and 5% year-over-year, demonstrating the company's commitment to returning value to shareholders while maintaining strong profitability.
- Strategic Asset Sale: BMO entered into an agreement with Stonepeak to sell its Transportation Finance and Vendor Finance businesses, which is expected to incur an accounting charge of approximately CAD 1.1 billion, yet by investing a 19.9% equity interest in the new entity, the company showcases its strategic decision to optimize its asset portfolio and focus on core operations.
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Analyst Views on BMO
Wall Street analysts forecast BMO stock price to fall
10 Analyst Rating
2 Buy
8 Hold
0 Sell
Hold
Current: 161.840
Low
128.13
Averages
133.97
High
144.69
Current: 161.840
Low
128.13
Averages
133.97
High
144.69
About BMO
Bank of Montreal (the Bank) is a North American bank. The Bank provides a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services. The Bank serves about 13 million customers across North America, and in select markets globally, through three integrated operating groups: Personal and Commercial Banking (P&C), BMO Wealth Management and BMO Capital Markets. The P&C operating group represents the sum of its two retail and commercial operating segments, Canadian Personal and Commercial Banking (Canadian P&C) and U.S. Personal and Commercial Banking (U.S. P&C). BMO Wealth Management serves a full range of clients, from individuals and families to business owners and institutions, offering a wide spectrum of wealth, asset management and insurance products and services. BMO Capital Markets offers a comprehensive range of products and services to corporate, institutional and government clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Policy Response: In light of weak employment data, the Bank of Canada may reassess its monetary policy to stimulate economic activity and promote recovery in the job market.
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- Record Net Income: The bank reported a record net income of $2.7 billion, with pre-provision pretax earnings (PPPT) rising 16% to $4.4 billion, indicating a significant enhancement in profitability and strong potential for sustainable growth in the future.
- Robust Capital Ratio: The bank's Common Equity Tier 1 (CET1) ratio stands at 13%, with an expected increase of 28 basis points from the sale of certain businesses, providing flexibility for future growth and capital returns, reflecting its strong capital management capabilities.
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See More
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See More
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- Earnings Per Share Beat: The adjusted EPS for the quarter reached C$3.67, surpassing analyst expectations of C$3.45, and showing a notable increase from C$3.48 in Q1 and C$2.62 in the same quarter last year, reflecting ongoing improvements in the company's profitability.
- Loan and Deposit Dynamics: Total net loans and acceptances rose to C$679.9B from C$669.3B in the previous quarter, while customer deposits fell from C$703.0B to C$693.4B, indicating shifts in client activity and the impact of market conditions.
- Growth in Non-Interest Income: The adjusted non-interest revenue for Q2 was C$4.31B, up from C$4.20B in Q1 and C$3.58B a year ago, demonstrating the company's sustained growth potential in wealth management and capital markets operations.
See More
