BMO Financial Group (TSX: BMO) reported Q2 2025 net income of $1.96 billion (or $2.50 earnings per share), up 5.1% from $1.87 billion (or $2.36 earnings per share) in Q2 2024 but down 8.2% from $2.14 billion in Q1 2025, as sharply higher credit provisions weighed on results.
Revenue rose to $8.68 billion, an 8.8% increase YoY from $7.97 billion but declined 6.3% sequentially. Net interest income climbed 12.9% to $5.10 billion, driven by higher margins, though it dipped 5.6% from the prior quarter. Non-interest revenue reached $3.58 billion, up 3.6% YoY but down 7.4% sequentially.
Provision for credit losses surged 49.5% to $1.05 billion, compared with $705 million a year ago, as “changes in the macro-economic outlook and portfolio credit migration” drove a $289 million charge on performing loans—up from $47 million in Q2 2024—and a $765 million provision on impaired loans.
Non-interest expenses rose 3.6% year-over-year to $5.02 billion but were 7.6% lower than Q1’s $5.43 billion.
On a non-GAAP basis, adjusted net income was $2.05 billion (or $2.62 adjusted earnings per share), marginally above Q2 2024’s $2.03 billion (or $2.59 adjusted earnings per share) but off 10.6% from Q1’s $2.29billion. Adjusted return on equity fell to 9.8% from 10.9% a year earlier.
On segment performance, Canadian P&C net income fell 10% to $782 million despite a 6% revenue gain as higher credit provisions weighed on results, while US P&C held steady at $546 million—down 4% on a constant-currency basis—after absorbing a $51 million loss on a credit-card portfolio sale.
Wealth Management delivered a 13% rise in net income to $361 million, driven by a 20% jump in asset-management earnings even as insurance income slipped 13%. Capital Markets earnings declined 6% to $431 million as strong market revenue was offset by increased costs and credit provisions. Corporate Services narrowed its loss to $158 million from $328 million a year earlier, benefiting from lower FDIC special assessments.
BMO declared a quarterly dividend of $1.63 per share, up 5% year-over-year, and repurchased 7 million shares in Q2.
BMO last traded at $144.86 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.
