Bank of Montreal (BMO) 2026 RBC Capital Markets Global Financial Institutions Conference summary

ROE targets and capital allocation

• Aiming to deliver a consistent ROE above 15% over the cycle, with recent Q1 ROE at 16.8% after adjustments.

• 12.5% CET1 equity is allocated to the business, targeting returns north of 15%.

• Focus on balancing growth with returns and building profitable businesses.

• Each division is expected to contribute to the overall ROE ambition.

Revenue growth and business performance

• Q1 revenue grew 43% year-over-year, outperforming a strong prior year quarter.

• Performance was broad-based across equity derivatives, commodities, financing, and advisory businesses.

• Investment cycle over recent years has expanded product breadth and international capabilities.

• Revenue growth is expected to align more closely with peers going forward.

Strategic focus and market positioning

• Business mix: 40% Canada, 50% U.S., 10% international.

• In Canada, offers full product suite to all client segments; in the U.S., focuses on areas with potential for leading market share.

• Built out rates and international distribution, now shifting investment to deepening existing capabilities and technology.

• Recent investment includes expanding the Tokyo office to distribute North American content.