Bank Of Montreal (BMO) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 26 2025
0mins
Should l Buy BMO?
Source: SeekingAlpha
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.
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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: 151.950
Low
128.13
Averages
133.97
High
144.69
Current: 151.950
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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See More
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- Responsible Technology Application: This collaboration complements BMO's newly established Institute for Applied Artificial Intelligence & Quantum, reflecting the bank's commitment to responsible technology adoption aimed at advancing quantum capabilities and governance.
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