{"id":878877,"date":"2025-08-26T05:33:14","date_gmt":"2025-08-26T09:33:14","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/bmo-financial-group-reports-third-quarter-2025-results\/"},"modified":"2025-08-26T05:33:14","modified_gmt":"2025-08-26T09:33:14","slug":"bmo-financial-group-reports-third-quarter-2025-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/bmo-financial-group-reports-third-quarter-2025-results\/","title":{"rendered":"BMO Financial Group Reports Third Quarter 2025 Results"},"content":{"rendered":"
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PR Newswire<\/p>\n<\/p><\/div>\n

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BMO’s Third Quarter 2025 Report to Shareholders, including the unaudited interim consolidated financial statements for the period ended July 31, 2025<\/span>, is available online at www.bmo.com\/investorrelations<\/a><\/u>, on the Canadian Securities Administrators’ website at www.sedarplus.ca<\/a><\/u>, and on the EDGAR section of the U.S.\u00a0Securities and Exchange Commission’s website at www.sec.gov<\/a><\/u>.<\/p>\n

\n Financial Results Highlights<\/b>\n <\/p>\n

\n Third Quarter 2025 compared with Third Quarter 2024:<\/b>\n <\/p>\n

\n \u2022\u00a0 Reported net income1<\/sup> of $2,330 million<\/span>, an increase of 25% from $1,865 million<\/span>; adjusted net income1<\/sup> of $2,399 million<\/span>, an increase of 21% <\/b>
\n from $1,981 million<\/span>
<\/b>
\n \u2022\u00a0 Reported earnings per share (EPS)2<\/sup> of $3.14<\/span>, an increase of 26% from $2.48<\/span>; adjusted EPS1, 2<\/sup> of $3.23<\/span>, an increase of 22% from $2.64<\/span>
<\/b>
\n \u2022\u00a0 Provision for credit losses (PCL) of $797 million<\/span>, compared with $906 million<\/span>
<\/b>
\n \u2022\u00a0 Reported return on equity (ROE) of 11.6%, compared with 10.0%; adjusted ROE1<\/sup> of 12.0%, compared with 10.6%
<\/b>
\n \u2022\u00a0 Common Equity Tier 1 (CET1) Ratio3<\/sup> of 13.5%, compared with 13.0%<\/b>\n <\/p>\n

\n Year-to-Date 2025 compared with Year-to-Date 2024:<\/b>\n <\/p>\n

\n \u2022\u00a0 Reported net income1<\/sup> of $6,430 million<\/span>, an increase of 28% from $5,023 million<\/span>; adjusted net income1<\/sup> of $6,734 million<\/span>, an increase of 14% <\/b>
\n from $5,907 million<\/span>
<\/b>
\n \u2022\u00a0 Reported EPS2<\/sup> of $8.47<\/span>, an increase of 29% from $6.57<\/span>; adjusted EPS1, 2 <\/sup>of $8.89<\/span>, an increase of 14% from $7.78<\/span>
<\/b>
\n \u2022\u00a0 PCL of $2,862 million<\/span>, compared with $2,238 million<\/span>
<\/b>
\n \u2022\u00a0 Reported ROE of 10.5%, compared with 9.0%; adjusted ROE1 <\/sup>of 11.1%, compared with 10.7%<\/b>\n <\/p>\n

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\n TORONTO<\/span>
\n <\/span>, Aug. 26, 2025<\/span><\/span> \/PRNewswire\/ – BMO Financial Group (TSX:BMO) (NYSE:BMO) today announced financial results for the third quarter ended July 31, 2025<\/span>. Reported net income was $2<\/span>,330\u00a0million and reported EPS was $3.14<\/span>, an increase from $1<\/span>,865\u00a0million and $2.48<\/span> in the prior year. Adjusted net income was $2<\/span>,399\u00a0million and adjusted EPS was $3.23<\/span>, an increase from $1<\/span>,981\u00a0million and $2.64<\/span> in the prior year.<\/p>\n

“BMO delivered another quarter of strong earnings growth, with solid revenue performance and good expense management. Disciplined execution against each of our ROE rebuild strategies is driving tangible results through consistent positive operating leverage, improving credit performance and strengthening profitability, especially across our U.S. businesses,” said Darryl White<\/span>, Chief Executive Officer, BMO Financial Group.<\/p>\n

“We continue to invest to drive sustainable growth across our businesses, including our recently announced acquisition of Burgundy Asset Management Ltd., adding talent and advancing digital and AI capabilities to deliver a differentiated client experience. We’re leveraging our strong balance sheet to support client growth, while returning excess capital to our shareholders,” concluded Mr. White.<\/p>\n

Concurrent with the release of results, BMO announced a fourth quarter\u00a02025 dividend of $1.63<\/span> per common share, unchanged from the prior quarter and an increase of $0.08<\/span> or\u00a05% from the prior year. The quarterly dividend of $1.63<\/span> per common share is equivalent to an annual dividend of $6<\/span>.52\u00a0per common share.<\/p>\n

On August\u00a026,\u00a02025, we announced our intention to terminate our existing normal course issuer bid (NCIB) to purchase for cancellation up to\u00a020\u00a0million common shares, and establish a new NCIB to purchase for cancellation up to\u00a030\u00a0million common shares, subject to the approval of the Office of the Superintendent of Financial Institutions Canada (OSFI) and the Toronto Stock Exchange. As of August\u00a022,\u00a02025, the bank had repurchased\u00a015.7\u00a0million shares. The existing NCIB will be terminated prior to commencing purchases under the new NCIB. Once approvals are obtained, the timing and amount of purchases under the new NCIB will be at management’s discretion, based on factors such as market conditions and capital levels.<\/p>\n

On June\u00a019,\u00a02025, we announced the signing of a definitive agreement to acquire Burgundy Asset Management Ltd., a leading independent wealth manager in Canada<\/span>. This acquisition will expand BMO’s wealth management and financial planning capabilities focused on high-net-worth and ultra-high-net-worth individuals, families, and institutions. The transaction is expected to close by the end of calendar\u00a02025, subject to customary closing conditions, including regulatory approvals.<\/p>\n

\n\n\n\n\n\n\n\n
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\n
\n
\n Caution<\/span>
\n <\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n The foregoing section contains forward-looking statements. Please refer to the Caution Regarding Forward-Looking Statements section.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n (1)<\/span>\n <\/p>\n<\/td>\n

\n

\n Results and measures in this document are presented on a generally accepted accounting principles (GAAP) basis. They are also presented on an adjusted basis that excludes the impact of certain specified items from reported results. Adjusted results and ratios are non-GAAP and are detailed in the Non-GAAP and Other Financial Measures section. Unless otherwise indicated, all amounts are in Canadian dollars. All ratios and percentage changes in this document are based on unrounded numbers.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n (2)<\/span>\n <\/p>\n<\/td>\n

\n

\n All EPS measures in this document refer to diluted EPS, unless specified otherwise.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n (3)<\/span>\n <\/p>\n<\/td>\n

\n

\n The CET1 Ratio is disclosed in accordance with the Capital Adequacy Requirements (CAR) Guideline, as set out by the Office of the Superintendent of Financial Institutions (OSFI), as applicable.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Third Quarter 2025 Performance Review
<\/b>Adjusted results and ratios in this section are on a non-GAAP basis. Refer to the Non-GAAP and Other Financial Measures section for further information on adjusting items. The order in which the impact on net income is discussed in this section follows the order of revenue, expenses and provision for credit losses, regardless of their relative impact.<\/p>\n

\n Canadian P&C
<\/b>Reported net income was $867\u00a0million, a decrease of $47\u00a0million or\u00a05% from the prior year, and adjusted net income was $870\u00a0million, a decrease of $50\u00a0million or\u00a05%. Results reflected a\u00a06% increase in revenue, primarily driven by higher net interest income due to balance growth and higher net interest margin, more than offset by higher expenses and a higher provision for credit losses.<\/p>\n

\n U.S. P&C
<\/b>Reported net income was $709\u00a0million, an increase of $239\u00a0million or\u00a051% from the prior year, and adjusted net income was $769\u00a0million, an increase of $230\u00a0million or\u00a042%.<\/p>\n

On a U.S. dollar basis, reported net income was $516\u00a0million, an increase of $172\u00a0million or\u00a050% from the prior year, and adjusted net income was $560\u00a0million, an increase of $165\u00a0million or\u00a042%. Results reflected a\u00a03% increase in revenue, driven by higher net interest income\u00a0and non-interest revenue, lower expenses and a lower provision for credit losses.<\/p>\n

\n BMO Wealth Management
<\/b>Reported net income was $436\u00a0million, an increase of $74\u00a0million or\u00a020% from the prior year, and adjusted net income was $441\u00a0million, an increase of $77\u00a0million or\u00a021%. Wealth and Asset Management reported net income was $341\u00a0million, an increase of $41\u00a0million or\u00a014%, reflecting higher revenue due to the impact of stronger global markets and net sales, as well as strong growth in loan and deposit balances, partially offset by higher expenses. Insurance net income was $95\u00a0million, an increase of $33\u00a0million or\u00a053% from the prior year, due to\u00a0a gain on the sale of a non-strategic portfolio of insurance contracts.<\/p>\n

\n BMO Capital Markets
<\/b>Reported net income was $438\u00a0million, an increase of $49\u00a0million or\u00a013% from the prior year, and adjusted net income was $442\u00a0million, an increase of $48\u00a0million or\u00a012%. Results reflected higher revenue in both Global Markets\u00a0and Investment and Corporate Banking, higher expenses\u00a0and a lower provision for credit losses.<\/p>\n

\n Corporate Services
<\/b>Reported net loss was $120\u00a0million, compared with reported net loss of $270\u00a0million in the prior year, and adjusted net loss was $123\u00a0million, compared with adjusted net loss of $236\u00a0million. The lower net loss was driven by higher revenue,\u00a0partially offset by higher expenses.<\/p>\n

\n Credit Quality
<\/b>Total provision for credit losses was $797\u00a0million, compared with a provision of $906\u00a0million in the prior year. The provision for credit losses on impaired loans was $773\u00a0million, a decrease of $55\u00a0million, largely due to lower provisions in U.S. Commercial Banking and BMO Capital Markets, partially offset by higher provisions in Canadian Commercial Banking and Canadian unsecured consumer lending. There was a $24\u00a0million provision for credit losses on performing loans, compared with a $78\u00a0million provision in the prior year. The provision for credit losses on performing loans in the current quarter reflected an improvement in the macro-economic scenarios, as well as lower balances in certain portfolios, which were more than offset by the impact of uncertainty in credit conditions and portfolio credit migration.<\/p>\n

Refer to the Critical Accounting Estimates and Judgments section of BMO’s\u00a02024 Annual Report and Note\u00a04 of the audited annual consolidated financial statements for further information on the allowance for credit losses as at October\u00a031,\u00a02024.<\/p>\n

\n Capital
<\/b>BMO’s Common Equity Tier\u00a01 (CET1) Ratio was\u00a013.5% as at July 31, 2025<\/span>, relatively unchanged from\u00a0the second quarter of\u00a02025, as internal capital generation was offset by the impact of the purchase of common shares for cancellation under BMO’s normal course issuer bid and higher source currency risk-weighted assets.<\/p>\n

\n Non-GAAP and Other Financial Measures
<\/b>Results and measures in this document are presented on a generally accepted accounting principles (GAAP) basis. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from our audited annual consolidated financial statements and our unaudited interim consolidated financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board. References to GAAP mean IFRS. We use a number of financial measures to assess our performance, as well as the performance of our operating segments, including amounts, measures and ratios that are presented on a non\u2011GAAP basis, as described below. We believe that these non\u2011GAAP amounts, measures and ratios, read together with our GAAP results, provide readers with a better understanding of how management assesses results.<\/p>\n

Non-GAAP amounts, measures and ratios do not have standardized meanings under GAAP. They are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, or as a substitute for, GAAP results.<\/p>\n

Certain information contained in BMO’s Third Quarter 2025 Management’s Discussion and Analysis dated August\u00a025,\u00a02025 for the period ended July\u00a031,\u00a02025, is incorporated by reference into this document. For further details on the composition of our supplementary financial measures, refer to the Glossary of Financial Terms section of BMO’s Third Quarter 2025 Report to Shareholders, which is available online at www.bmo.com\/investorrelations<\/a><\/u> and at www.sedarplus.ca<\/a><\/u>.<\/p>\n

\n Adjusted measures and ratios
<\/b>Management considers both reported and adjusted results and measures to be useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non\u2011interest expense, provision for credit losses and income taxes, as detailed in the following table. Adjusted results and measures presented in this document are non\u2011GAAP. Presenting results on both a reported basis and an adjusted basis permits readers to assess the impact of certain items on results for the periods presented, and to better assess results excluding those items that may not be reflective of ongoing business performance. As such, the presentation may facilitate readers’ analysis of trends. Except as otherwise noted, management’s discussion of changes in reported results in this document applies equally to changes in the corresponding adjusted results.<\/p>\n

\n Tangible common equity and return on tangible common equity
<\/b>Tangible common equity is calculated as common shareholders’ equity, less goodwill and acquisition-related intangible assets, net of related deferred tax liabilities. Return on tangible common equity (ROTCE) is calculated as net income available to common shareholders, adjusted for the amortization of acquisition-related intangible assets and any impairments, as a percentage of average tangible common equity. ROTCE is commonly used in the North American banking industry and is meaningful because it measures the performance of businesses consistently, whether they were acquired or developed organically.<\/p>\n

\n Adjusting Items
<\/b>Adjusted results in the current quarter and prior periods excluded the following items:<\/p>\n