BMO Financial Group (TSX: BMO) opened fiscal 2026 with Q1 revenue of $9.82 billion, up from $9.27 billion a year earlier, driven by net interest income of $5.64 billion versus $5.40 billion, plus non-interest revenue of $4.18 billion versus $3.87 billion.
Reported net income came in at $2.49 billion versus $2.14 billion in Q1 2025, translating to diluted EPS of $3.39. Reported ROE also then improved to 12.1% from 10.6%.
On an adjusted basis, net income was $2.55 billion versus $2.29 billion last year, translating to adjusted EPS of $3.48.
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Expenses remained the main counterweight. Reported non-interest expense increased to $5.75 billion from $5.43 billion a year earlier. Management said current-quarter results included severance costs of $147.0 million after tax tied to operational efficiencies.
Credit loss costs improved, with provision for credit losses of $746.0 million compared with $1.01 billion in Q1 2025.
By segment, Canadian P&C reported net income of $948.0 million versus $877.0 million a year earlier, while US Banking reported $742.0 million versus $635.0 million. Wealth Management reported $352.0 million versus $328.0 million, with Burgundy included in Wealth from November 1, 2025.
Capital Markets reported $657.0 million versus $589.0 million while Corporate Services posted a reported net loss of $210.0 million versus a $291.0 million loss a year earlier, aided by the larger FDIC assessment reversal.
Capital weakened modestly as buybacks and higher source-currency RWAs outweighed internal generation, with CET1 at 13.1% versus 13.6% a year earlier.
The bank declared a Q2 2026 dividend of $1.67 per common share, unchanged from the prior quarter and up 5% year over year.
BMO last traded at $195.06 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
