Bank Of Montreal (NYSE:BMO) Posts Earnings Results, Beats Expectations By $0.14 EPS

Posted by Shane Hupp on May 29th, 2026

Bank Of Montreal (NYSE:BMO – Get Free Report) (TSE:BMO) issued its quarterly earnings results on Wednesday. The bank reported $2.68 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.54 by $0.14, Zacks reports. The business had revenue of $7.04 billion during the quarter, compared to analyst estimates of $6.98 billion. Bank Of Montreal had a net margin of 12.60% and a return on equity of 13.06%. The business’s revenue was up 10.2% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $2.62 earnings per share.

Here are the key takeaways from Bank Of Montreal’s conference call:

BMO reported a very strong quarter, with adjusted EPS up 40% year over year to CAD 3.67 and record net income of CAD 2.7 billion, supported by broad-based revenue growth and strong operating leverage.
The bank said it made meaningful progress toward its 15% ROE target, with adjusted ROE rising to 13.5% and ROTCE reaching 17.6%, while management emphasized that momentum is building across the franchise.
Capital and shareholder returns remained strong: BMO ended the quarter with a 13% CET1 ratio, repurchased six million shares, and raised its dividend by 5% to CAD 1.71. Management also highlighted the announced sale of transportation and vendor finance as accretive to capital and ROE.
Business momentum was broad-based, including stronger U.S. banking loan growth, record wealth management earnings, and solid capital markets results. Management said the U.S. optimization program is effectively complete and that it sees an inflection point for profitable growth.
Credit trends remain mixed, with overall PCL stable quarter over quarter but Canadian consumer delinquencies still rising amid elevated insolvencies and unemployment. Management said it expects impaired provisions to remain in the mid-40s basis point range and sees continued pressure in unsecured credit.

Bank Of Montreal Stock Down 0.7%

BMO stock opened at $162.03 on Friday. The company has a debt-to-equity ratio of 0.11, a current ratio of 1.02 and a quick ratio of 1.02. Bank Of Montreal has a 1-year low of $104.08 and a 1-year high of $163.44. The firm has a fifty day moving average price of $147.59 and a two-hundred day moving average price of $139.01. The firm has a market cap of $113.56 billion, a price-to-earnings ratio of 17.20, a PEG ratio of 0.92 and a beta of 0.94.

Bank Of Montreal Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, August 26th. Shareholders of record on Thursday, July 30th will be paid a dividend of $1.71 per share. The ex-dividend date is Thursday, July 30th. This is a positive change from Bank Of Montreal’s previous quarterly dividend of $1.67. This represents a $6.84 annualized dividend and a yield of 4.2%. Bank Of Montreal’s payout ratio is presently 55.75%.

Bank Of Montreal News Roundup

Here are the key news stories impacting Bank Of Montreal this week:

Positive Sentiment: BMO reported better-than-expected Q2 results, with earnings per share of $3.67 topping estimates and revenue of $7.04 billion also ahead of forecasts. Net income rose 34% year over year, showing broad improvement in profitability. BMO Financial Group Reports Second Quarter 2026 Results
Positive Sentiment: The bank increased its quarterly common dividend to $1.71 per share, up 2% from the prior quarter and 5% from a year ago, signaling confidence in its capital position and earnings outlook. BMO Financial Group Increases Common Share Dividend by 4 cents from the prior quarter, up 5 percent from the prior year
Positive Sentiment: Management highlighted record or improved profitability metrics, including higher ROE and lower provision for credit losses, while wealth-related strength was noted in earnings commentary. Bank of Montreal (BMO) Q2 2026 Earnings Call Highlights: Record Net Income and Strong Wealth …
Neutral Sentiment: Broader coverage of Canada’s big-bank earnings season put BMO’s results in context alongside peers, but did not introduce a new company-specific catalyst. RBC, CIBC, TD Bank, BMO, National Bank and Scotiabank: A breakdown of the big banks’ second-quarter earnings
Negative Sentiment: One note of caution was weaker credit data, which showed little improvement despite a stronger freight market, suggesting some ongoing pressure in the loan book. BMO’s credit data shows little improvement despite stronger freight market

Institutional Trading of Bank Of Montreal

Several institutional investors have recently added to or reduced their stakes in the business. FIL Ltd increased its stake in Bank Of Montreal by 15.2% during the fourth quarter. FIL Ltd now owns 9,445,162 shares of the bank’s stock valued at $1,226,622,000 after purchasing an additional 1,245,500 shares during the last quarter. Morgan Stanley increased its stake in Bank Of Montreal by 74.4% during the fourth quarter. Morgan Stanley now owns 3,817,406 shares of the bank’s stock valued at $495,461,000 after purchasing an additional 1,628,318 shares during the last quarter. Dimensional Fund Advisors LP increased its stake in Bank Of Montreal by 0.9% during the fourth quarter. Dimensional Fund Advisors LP now owns 3,588,944 shares of the bank’s stock valued at $465,815,000 after purchasing an additional 31,478 shares during the last quarter. UBS Group AG increased its stake in Bank Of Montreal by 155.3% during the third quarter. UBS Group AG now owns 2,127,377 shares of the bank’s stock valued at $277,091,000 after purchasing an additional 1,294,169 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. increased its stake in Bank Of Montreal by 0.8% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 1,968,071 shares of the bank’s stock valued at $255,925,000 after purchasing an additional 15,814 shares during the last quarter. Institutional investors own 45.82% of the company’s stock.

Analysts Set New Price Targets

A number of analysts recently issued reports on the stock. National Bank Financial restated a “sector perform” rating on shares of Bank Of Montreal in a research note on Wednesday, February 25th. Desjardins restated a “hold” rating on shares of Bank Of Montreal in a research note on Thursday. Weiss Ratings restated a “buy (b)” rating on shares of Bank Of Montreal in a research note on Friday, April 17th. Jefferies Financial Group restated a “hold” rating on shares of Bank Of Montreal in a research note on Wednesday, February 25th. Finally, Scotiabank restated a “sector perform” rating on shares of Bank Of Montreal in a research note on Monday, May 4th. Four equities research analysts have rated the stock with a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, Bank Of Montreal currently has a consensus rating of “Hold” and an average target price of $163.00.

Read Our Latest Stock Report on Bank Of Montreal

Bank Of Montreal Company Profile

(Get Free Report)

Bank of Montreal (NYSE:BMO), commonly known as BMO Financial Group, is one of Canada’s largest and longest-established banks. Founded in Montreal and headquartered in Montreal, Quebec, the bank provides a broad range of financial services to retail, commercial, corporate and institutional clients. BMO is publicly listed in both Canada and the United States and operates under a consolidated financial services model that integrates banking, capital markets, wealth management and asset management activities.

BMO’s core businesses include personal and commercial banking—offering checking and savings accounts, lending, mortgages, and small-business services—alongside wealth management and private banking through its asset and investment management divisions.