BMO Financial Group (TSX: BMO) this morning reported its Q3 2025 financials, indicating a surge in net income as credit loss provisions ease.Quarterly revenue increased 10% to $8.99 billion from last year’s $8.19 billion, driven by a 15% jump in net interest income to $5.50 billion. Non-interest revenue rose 3% to $3.49 billion.
Non-interest expense increased 6% to $5.11 billion. Meanwhile, provision for credit losses improved to $797 million, down 12% year over year and 24% sequentially. Income before taxes rose 26% to $3.09 billion, with taxes up 30% to $756 million.
This led to a net income of $2.33 billion, up 25% year over year from $1.87 billion, with EPS of $3.14, up from $2.48. Adjusted net income was $2.40 billion, up 21%, and adjusted EPS was $3.23, up 22%.
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Canadian P&C adjusted net income declined 5% to $870 million despite 6% revenue growth as higher expenses and credit costs offset gains, while US P&C adjusted net income rose 43% to $769 million as revenue grew and both expenses and PCL fell.
Wealth Management adjusted net income rose 21% to $441 million, including a gain tied to an insurance portfolio sale. Capital Markets adjusted net income increased 12% to $442 million, and Corporate Services’ adjusted net loss narrowed to $123 million from $236 million.
Credit quality improved but remains a swing factor. Impaired loan PCL was $773 million, down $55 million year over year, with declines in US Commercial Banking and Capital Markets partly offset by higher provisions in Canadian Commercial and unsecured consumer. Performing loan PCL was $24 million, versus $78 million in the prior year. However, year-to-date PCL still rose 28% to $2.86 billion compared to last year.
Reported ROE was 11.6%, up from 10.0% a year ago, while CET1 was 13.5%, up 50 bps year over year . The quarterly dividend remained at $1.63 per share.
BMO last traded at $157.78 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.
