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.
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