Saturday, September 13, 2025

Latest

BMO Reports 65% Jump In Net Income In Q1 2025 As Credit Loss Provisions Continue To Balloon

BMO Financial Group (TSX: BMO) announced its fiscal Q1 2025 financials, with total revenue climbing to $9.27 billion from $7.67 billion a year ago.

This 21% surge in quarterly revenue is driven by net interest income rising to $5.40 billion from $4.72 billion, while non-interest revenue jumped 31% to $3.87 billion, compared with $2.95 billion in Q1 2024.

Reported net income soared 65% year over year to $2.14 billion, up from $1.29 billion in Q1 2024. On an adjusted basis, net income stood at $2.29 billion, an increase of 21% from $1.89 billion last year. Diluted earnings per share climbed to $2.83 from $1.73, while adjusted EPS rose to $3.04 from $2.56.

On a per segment basis, Canadian Personal and Commercial Banking generated net income of $894 million, down 3% year over year, mainly due to higher credit provisions despite a 10% revenue increase. The US market recorded $580 million in reported net income, a 4% increase driven by currency tailwinds.

BMO Wealth Management posted a 53% surge in net income to $369 million, while BMO Capital Markets saw a 49% jump in reported net income to $587 million.

Provisions for credit losses continue to spike in Q1 2025 as total PCL reached $1.01 billion, up from $627 million a year ago. Further, the bank’s PCL on impaired loans jumped to $859 million from $473 million. But on a quarter-over-quarter basis, total PCL decreased from $1.523 billion.

Reported non-interest expenses in Q1 2025 stood at $5.43 billion, essentially flat compared with $5.39 billion in Q1 2024, with the slight overall rise reflecting higher performance-based compensation and the impact of aligning vacation accruals, offset by the fact that last year’s results had included a substantial US FDIC special assessment.

BMO maintained a Common Equity Tier 1 Ratio of 13.6%, up from 12.8% a year earlier. The bank also declared a quarterly dividend of $1.59 per share—unchanged from the prior quarter and up 5% from last year.

BMO repurchased 1.2 million common shares in the first quarter under its normal course issuer bid program.

BMO last traded at $142.35 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.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Bank of Montreal Downgraded by RBC Amid Rapid Credit Quality Decline

RBC Capital Markets downgraded the Bank of Montreal (TSX: BMO) from “Outperform” to “Sector Perform,”...

Wednesday, July 31, 2024, 01:46:00 PM

BMO Snaps Up Underperforming Burgundy Asset Mngt for $625M—2.3% Of Its AUM

BMO (TSX: BMO) is buying Burgundy Asset Management for $625 million in stock, a deal...

Friday, June 20, 2025, 02:54:00 PM

BMO: Bank of Canada Could Hike Rates as High as 6% to Tame Inflation

The Bank of Canada’s surprise colossal 100 basis-point rate hike signalled that inflation has become...

Wednesday, July 20, 2022, 12:22:00 PM

BMO Tightens Lending Criteria for Tariff-Impacted Borrowers

The Bank of Montreal (TSX: BMO) has announced significant restrictions to its lending policies for...

Monday, March 24, 2025, 02:14:00 PM

BMO Blocking Retail Investors From Shorting Pot Stocks?

Last night, Victor Ferreira of the National Post reported that BMO is no longer allowing...

Thursday, September 5, 2019, 08:17:37 AM