Earnings season is underway as the country’s top banks post their financial results for the third quarter
Bank of Montreal (BMO) posted stronger Q3 financials than expected, with adjusted net income of $2.86 billion up 19% from the same time last year even as the headline reported figure slipped.
The company said on Tuesday morning that overall net income was down to $1.75 billion from $2.3 billion, dragged down by a $962 million goodwill charge tied to the announced sale of BMO’s Transportation Finance and Vendor Finance business.
Adjusted earnings per share were 22% higher, climbing to $3.96 from $3.23, while the bank said adjusted return on equity was up to 14% compared with 12% a year before.
Tuesday marked the first day of the Big Six bank’s quarterly earnings announcement, with Scotiabank also revealing its third-quarter results. Toronto-Dominion (TD) Bank, Canadian Imperial Bank of Commerce (CIBC), Royal Bank of Canada (RBC), and National Bank of Canada (NBC) are all scheduled to release their earnings in the coming days.
Financial markets will be closely watching provisions for credit losses at Canada’s banking giants as economic uncertainty continues – and BMO set aside less money for souring loans compared with 2025’s third quarter.
Total PCLs fell to $722 million from $797 million a year earlier, the bank said. Year-to-date, BMO’s provision for credit losses has declined to $2.2 billion from $2.86 billion over the same period in 2025.
BMO’s domestic personal and commercial banking division posted adjusted net income of $983 million, a 15% year-over-year jump, driven by a 6% increase in revenue and lower PCLs.
Net interest margin expansion contributed significantly to revenue growth alongside gains in non-interest income.
In the US, BMO’s banking division also saw growth, with adjusted net income rising by 11% to $925 million. Stronger net interest margin and non-interest income fuelled a 5% jump in revenue on the US side, while a stronger US dollar added about two percentage points to that uptick.
The bank announced a fourth-quarter common dividend of $1.71 per share, unchanged from the prior quarter but 5% higher than a year ago. BMO also repurchased 3.8 million common shares at an average price of $239.37 and announced plans to establish a new normal course issuer bid for up to 25 million shares pending regulatory approval.
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