Bank of Montreal (BMO) Q1 2026 earnings summary

Executive summary

• Adjusted EPS rose 15% year-over-year to $3.48, with reported EPS up 20%, despite a $202 million severance charge reducing EPS by $0.21.

• Record pre-provision, pre-tax earnings and record revenue achieved in all operating segments, driven by strong fee growth and margin expansion.

• Underlying ROE improved to 13.1% year-over-year, with adjusted ROE at 12.4% and reported ROE at 12.1%.

• 6 million shares repurchased during the quarter.

• Completed acquisition of Burgundy Asset Management, contributing to Wealth Management results.

Financial highlights

• Adjusted net income was $2.6 billion, up 11% year-over-year; reported net income was $2.5 billion, up 16%.

• Revenue increased 6% year-over-year (8% on constant currency), reaching $9,824 million.

• Non-interest revenue grew 9% year-over-year, led by wealth management and trading revenues.

• Expenses increased 9% (5% excluding severance charge), with positive operating leverage of 1.1%.

• CET1 ratio at 13.1%, reflecting capital deployment, share repurchases, and the Burgundy acquisition.

Outlook and guidance

• Targeting sustained ROE of 15% by exit of 2027, with 60% progress achieved in 40% of the planned timeframe.

• Management expects ongoing momentum in core operating performance, margin stability, and further improvement in U.S. Banking.

• Annualized savings of $250 million from severance charge, half realized in 2026, remainder in 2027.

• Impaired provisions anticipated to remain in the mid-40 bps range, with quarterly variability.

• Focus remains on disciplined execution, operational efficiency, and strategic investments in technology and talent.