Bank of Montreal (BMO) Q1 2026 earnings summary

Executive summary

• Adjusted EPS rose 15% year-over-year to $3.48, with reported EPS up 20%, despite a $202 million severance charge reducing EPS by $0.21.

• Record pre-provision, pre-tax earnings and record revenue achieved in all operating segments, driven by strong fee growth and margin expansion.

• Underlying ROE improved to 13.1%, with adjusted ROE at 12.4% and reported ROE at 12.1%.

• 6 million shares repurchased during the quarter.

• Completed acquisition of Burgundy Asset Management, contributing to Wealth Management results.

Financial highlights

• Adjusted net income was $2.6 billion, up 11% year-over-year; reported net income was $2.5 billion, with revenue up 6% (8% constant currency).

• Provision for credit losses decreased to $746 million, with PCL on impaired loans at 44 bps.

• Non-interest expense increased to $5,753 million, up from $5,427 million.

• NIM ex markets was 2.33%, up 20 bps year-over-year and 3 bps sequentially.

• CET1 ratio at 13.1%, reflecting capital deployment and share repurchases.

Outlook and guidance

• Targeting sustained ROE of 15% by exit of 2027, with 60% of the journey completed in 40% of the time.

• Management expects ongoing momentum in core operating performance and further improvement in U.S. Banking.

• NIM expected to remain relatively stable near term, with tailwinds from deposit mix and ladder reinvestments.

• Impaired provisions anticipated to remain in the mid-40 bps range, with quarterly variability.

• Focus remains on disciplined execution, operational efficiency, and strategic investments in technology and talent.