Bank Of Montreal (NYSE:BMO) Announces Earnings Results, Beats Estimates By $0.16 EPS

Bank Of Montreal (NYSE:BMO) (TSE:BMO) issued its quarterly earnings results on Wednesday. The bank reported $2.51 EPS for the quarter, topping the consensus estimate of $2.35 by $0.16, Zacks reports. Bank Of Montreal had a net margin of 11.13% and a return on equity of 11.76%. The firm had revenue of $7.21 billion for the quarter, compared to analysts’ expectations of $6.73 billion. During the same period in the previous year, the business earned $3.04 earnings per share. Bank Of Montreal’s revenue for the quarter was up 6.0% compared to the same quarter last year.

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

• Strong quarter with Adjusted EPS of CAD 3.48 (+15% YoY), record pre-provision, pre-tax earnings of CAD 4.1 billion and underlying ROE of 13.1% (up 180 bps), with management reaffirming a path to 15% ROE by exit-2027.
• Margin and revenue upside from deposit-mix improvements and ladder reinvestments lifted NII ex-markets and NIM (233 bps, +20 bps YoY), but management expects NIM to be relatively stable near term as competitive dynamics and loan growth evolve.
• U.S. optimization is ~90% complete after roughly CAD 6 billion of loan reductions; management reports improving pipelines, better deposit mix and expects mid-single-digit loan growth in the back half of the year.
• Credit was largely in line with expectations—total PCLs declined to CAD 746 million and the performing allowance is CAD 4.6 billion (69 bps)—but pockets of consumer stress (higher delinquencies in parts of the GTA and elevated card losses in lower-income segments) warrant monitoring.

Bank Of Montreal Stock Up 0.4%

Shares of BMO stock traded up $0.54 on Thursday, reaching $148.67. 960,260 shares of the company’s stock traded hands, compared to its average volume of 856,784. The company has a market capitalization of $105.00 billion, a P/E ratio of 18.22, a price-to-earnings-growth ratio of 0.99 and a beta of 0.94. Bank Of Montreal has a 12-month low of $85.40 and a 12-month high of $149.01. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.00 and a current ratio of 1.00. The business’s 50 day moving average price is $136.78 and its two-hundred day moving average price is $128.88.

Bank Of Montreal Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, May 26th. Stockholders of record on Wednesday, April 29th will be given a $1.67 dividend. This represents a $6.68 annualized dividend and a dividend yield of 4.5%. The ex-dividend date of this dividend is Wednesday, April 29th. Bank Of Montreal’s dividend payout ratio (DPR) is 59.68%.

Key Bank Of Montreal News

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

• Positive Sentiment: Q1 results beat consensus: BMO reported stronger‑than‑expected revenue and EPS with management calling out record revenue across businesses and double‑digit earnings growth. That top‑line / profit surprise is the primary bullish driver. Bank of Montreal (BMO) Q1 2026 Earnings Call Highlights: Record Earnings and Strategic Optimizations
• Positive Sentiment: Credit trends improved: provision for credit losses declined materially year‑over‑year, and commentary pointed to easing pressure in commercial/truck portfolios — reducing a key tail risk for bank earnings. BMO Financial Group Reports First Quarter 2026 Results
• Positive Sentiment: Dividend maintained and buyback/reinvestment options confirmed: management kept the quarterly dividend at $1.67/share, supporting the stock’s income appeal. BMO Financial Group Declares Dividends
• Positive Sentiment: Short interest plunged in February (~63% decline), reducing near‑term downward pressure from short covering risk and signaling waning bearish positioning. (Internal data entry)
• Neutral Sentiment: Analysts and investors are re‑assessing the investment narrative — some commentary frames the beat as shifting focus toward capital returns and valuation rather than growth alone; this may lead to upgrades or valuation re‑rating, but outcomes depend on guidance and capital plans. Did BMO’s Q1 Profit Beat and Capital Returns Just Shift Bank of Montreal’s (TSX:BMO) Investment Narrative?
• Neutral Sentiment: Investors are running a fresh valuation check after the beat — strong earnings lower forward multiples but higher share price expectations could offset. Watch forward EPS and guidance. Bank of Montreal (TSX:BMO) Valuation Check After Record Revenue And Profit Beat
• Negative Sentiment: Capital ratios slightly softer: CET1 fell modestly versus prior quarter (still well above regulatory minima), which investors will watch if capital returns accelerate. This is a potential mild headwind if capital metrics keep trending down. BMO Financial Group Reports First Quarter 2026 Results

Institutional Investors Weigh In On Bank Of Montreal

A number of institutional investors have recently bought and sold shares of BMO. Larson Financial Group LLC increased its holdings in shares of Bank Of Montreal by 466.7% in the 3rd quarter. Larson Financial Group LLC now owns 238 shares of the bank’s stock valued at $31,000 after purchasing an additional 196 shares during the period. WFA of San Diego LLC acquired a new stake in shares of Bank Of Montreal during the second quarter worth approximately $28,000. Swiss RE Ltd. purchased a new position in Bank Of Montreal during the fourth quarter valued at approximately $38,000. Sunbelt Securities Inc. acquired a new position in Bank Of Montreal in the 3rd quarter valued at approximately $42,000. Finally, Birchwood Financial Partners Inc. purchased a new stake in Bank Of Montreal in the 4th quarter worth approximately $61,000. 45.82% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of analysts recently commented on BMO shares. Jefferies Financial Group reiterated a “hold” rating on shares of Bank Of Montreal in a report on Wednesday. National Bank Financial reaffirmed a “sector perform” rating on shares of Bank Of Montreal in a report on Wednesday. TD Securities upgraded Bank Of Montreal from a “hold” rating to a “buy” rating in a research report on Tuesday, January 27th. Zacks Research upgraded Bank Of Montreal from a “hold” rating to a “strong-buy” rating in a report on Thursday, February 19th. Finally, Scotiabank reaffirmed a “sector perform” rating on shares of Bank Of Montreal in a research report on Friday, January 9th. Two analysts have rated the stock with a Strong Buy rating, three have given a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $163.00.

Bank Of Montreal Company Profile

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.