Bank Of Montreal (BMO) Q3 2025 Earnings Call Transcript

Earnings Per Share (EPS) Increased 22% to $3.23 year-over-year. This growth was attributed to strong earnings growth and progress against the ROE rebuild objective.

Net Income Reached $2.4 billion, the highest quarter on record, up 21% year-over-year. This was driven by strong pre-provision pretax earnings (PPPT) growth of 13% and lower provisions for credit losses (PCLs).

Pre-Provision Pretax Earnings (PPPT) Increased 13% year-over-year to $4 billion. Growth was supported by contributions from all operating groups.

Return on Equity (ROE) Improved to 12% for the quarter, driven by execution of ROE rebuild strategies, including U.S. P&C improvement, normalizing PCLs, operating performance, and capital optimization.

Revenue Growth Year-to-date revenue growth was 12%, supported by strong operating leverage of 4.7% and positive contributions from all business segments.

Net Interest Margin (NIM) Increased 16 basis points year-over-year, supported by higher deposit margins and disciplined deposit management.

Canadian P&C Net Income Decreased 5% year-over-year due to higher provisions for credit losses (PCLs), despite a 6% growth in pre-provision pretax earnings (PPPT).

U.S. P&C Net Income Increased 42% year-over-year, driven by 10% PPPT growth, positive operating leverage of 5%, and lower PCLs.

Wealth Management Revenue Increased 11% year-over-year, driven by higher markets, net sales growth, and higher loans and deposits.

Capital Markets Net Income Increased 12% year-over-year, supported by 7% revenue growth from higher underwriting and advisory fees, as well as strong trading revenue.

Provision for Credit Losses (PCLs) Total PCLs decreased by $109 million year-over-year, reflecting lower impaired and performing provisions.

CET1 Ratio Remained strong at 13.5%, unchanged from the previous quarter, supported by internal capital generation and share repurchases.