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.
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Municipality Finance Plc Issues $500 Million Benchmark Bond
- Benchmark Bond Issuance: Municipality Finance Plc is set to issue a $500 million benchmark bond on January 21, 2026, maturing on February 4, 2030, with an interest rate of Compounded SOFR plus 100 basis points, indicating the company's active engagement in capital markets.
- Funding Program Context: This issuance is part of MuniFin's €50 billion debt issuance program, reflecting the company's ongoing strategy to leverage international capital markets to finance socially responsible investment projects.
- Exchange Listing Application: MuniFin has applied for the benchmark bond to be listed on the Nasdaq Helsinki, with public trading expected to commence on January 21, 2026, enhancing its market liquidity and attractiveness to investors.
- Joint Lead Managers: The bond issuance is managed by Bank of Montreal, Citigroup Global Markets, and RBC Capital Markets, demonstrating strong market confidence and support for MuniFin's debt instruments.

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