Bank of Montreal (BMO) Investor Day 2026 summary

Strategic Vision, Priorities, and Business Model

• Aims to achieve and sustain 15%+ ROE by fiscal 2027–2028, leveraging a diversified North American platform, disciplined capital allocation, and a client-centric strategy.

• Commercial banking is the core earnings engine, generating $10B in revenue and over 40% of earnings, supported by a scaled U.S. franchise and strong Canadian retail and wealth businesses.

• Unified One Client approach integrates advisory, financing, and digital solutions to deepen relationships and drive quality revenue.

• Each business segment has clear ROE and growth targets, with Wealth Management aiming for 40%+ ROE and Capital Markets for 15%+ ROE.

• Disciplined expense, risk, and capital management underpin long-term shareholder value and sustainable ROE.

Financial Performance, Targets, and Capital Management

• Delivered 150 bps ROE improvement and 26% EPS growth in 2025, with F2025 adjusted ROE at 13.1% and a target to exceed 15% by F2028.

• Operating leverage of 4.3% and 18% PPPT growth in 2025, with record revenue and PPPT in Q1 2026.

• Medium-term objectives include 15%+ ROE, 18%+ ROTCE, 7-10% EPS growth, 2%+ operating leverage, and strong capital ratios.

• CET1 ratio is expected to be 12.5%-13% exiting 2027, supporting organic growth, selective M&A, buybacks, and a 40%-50% dividend payout.

• Organic capital generation is expected to rise to 125-135 bps annually at 15% ROE, supporting growth and shareholder distributions.

U.S. Banking and Commercial Franchise

• U.S. Banking is targeted to reach 12% ROE by Q4 2027, with mid-single digit loan and deposit growth, 10% fee growth, and efficiency improvements.

• U.S. franchise is unified and scaled, focusing on densification in California, Arizona, and Midwest/West markets, with plans to build 150 new financial centers.

• Commercial banking drives full client relationships, with sector-specific expertise and award-winning treasury and payment solutions.

• Canadian Commercial Banking is the second largest in Canada, with a top-tier efficiency ratio in the low-30s and a focus on high-growth sectors and regions.

• Canadian Personal and Commercial Banking targets >25% ROE, leveraging digital leadership, client growth, and credit normalization.