Bank Of Montreal (BMO) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 26 2025
0mins
Should l Buy BMO?
Source: SeekingAlpha
Earnings Per Share (EPS) Increased 22% to $3.23 year-over-year. This growth was attributed to strong earnings growth and progress against the ROE rebuild objective.
Net Income Reached $2.4 billion, the highest quarter on record, up 21% year-over-year. This was driven by strong pre-provision pretax earnings (PPPT) growth of 13% and lower provisions for credit losses (PCLs).
Pre-Provision Pretax Earnings (PPPT) Increased 13% year-over-year to $4 billion. Growth was supported by contributions from all operating groups.
Return on Equity (ROE) Improved to 12% for the quarter, driven by execution of ROE rebuild strategies, including U.S. P&C improvement, normalizing PCLs, operating performance, and capital optimization.
Revenue Growth Year-to-date revenue growth was 12%, supported by strong operating leverage of 4.7% and positive contributions from all business segments.
Net Interest Margin (NIM) Increased 16 basis points year-over-year, supported by higher deposit margins and disciplined deposit management.
Canadian P&C Net Income Decreased 5% year-over-year due to higher provisions for credit losses (PCLs), despite a 6% growth in pre-provision pretax earnings (PPPT).
U.S. P&C Net Income Increased 42% year-over-year, driven by 10% PPPT growth, positive operating leverage of 5%, and lower PCLs.
Wealth Management Revenue Increased 11% year-over-year, driven by higher markets, net sales growth, and higher loans and deposits.
Capital Markets Net Income Increased 12% year-over-year, supported by 7% revenue growth from higher underwriting and advisory fees, as well as strong trading revenue.
Provision for Credit Losses (PCLs) Total PCLs decreased by $109 million year-over-year, reflecting lower impaired and performing provisions.
CET1 Ratio Remained strong at 13.5%, unchanged from the previous quarter, supported by internal capital generation and share repurchases.
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Analyst Views on BMO
Wall Street analysts forecast BMO stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for BMO is 133.97 USD with a low forecast of 128.13 USD and a high forecast of 144.69 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
2 Buy
8 Hold
0 Sell
Hold
Current: 139.830
Low
128.13
Averages
133.97
High
144.69
Current: 139.830
Low
128.13
Averages
133.97
High
144.69
About BMO
Bank of Montreal (the Bank) is a North American bank. The Bank provides a broad range of personal and commercial banking, wealth management, global markets and investment banking products and services. The Bank serves about 13 million customers across North America, and in select markets globally, through three integrated operating groups: Personal and Commercial Banking (P&C), BMO Wealth Management and BMO Capital Markets. The P&C operating group represents the sum of its two retail and commercial operating segments, Canadian Personal and Commercial Banking (Canadian P&C) and U.S. Personal and Commercial Banking (U.S. P&C). BMO Wealth Management serves a full range of clients, from individuals and families to business owners and institutions, offering a wide spectrum of wealth, asset management and insurance products and services. BMO Capital Markets offers a comprehensive range of products and services to corporate, institutional and government clients.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Customer Service: BMO serves approximately 13 million customers with a diverse range of personal and commercial banking, wealth management, and investment banking services, showcasing its extensive influence in North American and global markets.
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- Valuation Analysis: Zaremski noted that while P/E ratios are at discounted levels, the enterprise value to EBITDA and free cash flow yield remain expensive compared to the S&P 500, suggesting limited attractiveness for the stock.
- Earnings Forecast Adjustment: BMO Capital reduced its EBITDA estimates for Brown & Brown by approximately 3% and projected a 2.4% organic growth in 2026, reflecting a cautious stance on the company's future growth prospects.
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- Positive Industry Outlook: JPMorgan also increased SLB's price target from $43 to $54, emphasizing that the company's 2026 outlook was a key factor in the rating upgrade, showcasing recognition of its long-term growth potential.
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- Funding Program Context: This issuance is part of MuniFin's €50 billion debt issuance program, reflecting the company's ongoing strategy to leverage international capital markets to finance socially responsible investment projects.
- Exchange Listing Application: MuniFin has applied for the benchmark bond to be listed on the Nasdaq Helsinki, with public trading expected to commence on January 21, 2026, enhancing its market liquidity and attractiveness to investors.
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Trump Administration's Influence: The Trump administration's attempts to pressure the Federal Reserve into lowering interest rates may not achieve the intended results.
Potential Backfire: These efforts could potentially backfire, delaying the anticipated rate cuts that both central bank officials and the markets expect for the year.
See More
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- Investor Day Announcement: BMO Financial Group will host an all-bank Investor Day in Toronto on March 26, 2026, featuring presentations from CEO Darryl White and senior executives, aimed at enhancing communication and transparency with investors.
- Asset Scale: As of October 31, 2025, BMO Financial Group boasts total assets of $1.5 trillion, positioning it as the seventh largest bank in North America, which supports future growth and investor confidence through its robust asset base.
- Customer Service Network: Serving approximately 13 million customers, BMO offers a diverse range of personal and commercial banking, wealth management, and investment banking services, showcasing its extensive influence and service capabilities in North America and select global markets.
- Corporate Mission: Committed to driving positive change, BMO aims to contribute to a thriving economy, sustainable future, and stronger communities, a mission that will be further reinforced through the engagement at the Investor Day, enhancing its brand image and market positioning.
See More
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- Investor Day Event: BMO Financial Group will host an all-bank Investor Day in Toronto on March 26, 2026, featuring presentations from CEO Darryl White and the senior executive team, aimed at enhancing investor engagement and transparency.
- Asset Scale: As of October 31, 2025, BMO's total assets reached $1.5 trillion, positioning it as the seventh largest bank in North America, which supports future growth and investor confidence through its robust asset base.
- Customer Service: BMO serves approximately 13 million customers with a diverse range of personal and commercial banking, wealth management, and investment banking services, showcasing its extensive influence in North American and global markets.
- Sustainability Commitment: BMO is committed to driving positive change, supporting sustainable economic and community development, reflecting its corporate mission to 'Boldly Grow the Good in business and life,' which further enhances its brand image and market competitiveness.
See More
