Bank of Montreal

BMO

Market cap $113B

BMO Financial has hired David Descoteaux from UBS to head its U.S. M&A ​team for capital markets and commercial banking, ‌according to a memo seen by Reuters, finalizing a months-long search to fill the role as the Canadian lender combined ​teams.

Bank of Montreal stock currently trades at an unprecedented 17x P/E, well above its historical 10-12x range. BMO's recent outperformance is driven by expectations of U.S.-centric growth post-Bank of the West integration, but I remain skeptical of sustained high returns. I maintain a Hold rating on BMO with a fair value target of $140 CAD/share, citing valuation risks and macro sensitivity.

Bank of Montreal (BMO:CA) Q2 2026 Earnings Call Transcript

BMO Financial Group (TSX:BMO), Bank of Nova Scotia (TSX:BNS) and National Bank of Canada (TSX:NA) all topped analyst expectations in their second-quarter results, with each bank raising its quarterly dividend. BMO posted the most dramatic profit surge of the three, with net income climbing 34% year-over-year to $2.63 billion, or $3.53 per diluted share, for the quarter ended April 30.

Bank of Montreal, Bank of Nova Scotia and National Bank of Canada kicked off earnings season for Canada's largest lenders with plans to lift their dividends.

Bank Of Montreal NYSE: BMO reported stronger second-quarter results for fiscal 2026, with management pointing to higher fee revenue, improved operating leverage and continued progress toward its profitability targets following the bank's March Investor Day.

Bank of Montreal is boosting its dividend payout after logging a lift in fiscal second-quarter earnings on the back of strong fee revenue.

TORONTO, May 27, 2026 /PRNewswire/ - Bank of Montreal (TSX: BMO) (NYSE: BMO) today announced that its Board of Directors declared a quarterly dividend of $1.71 per share on paid-up common shares of Bank of Montreal for the third quarter of fiscal year 2026, a 4 cent, or 2 percent, increase from the prior quarter, up 5 percent from the prior year. The Board of Directors also declared a dividend of: $0.426 per share on paid-up Class B Preferred Shares Series 44.

BMO's Second Quarter 2026 Report to Shareholders, including the unaudited interim consolidated financial statements for the period ended April 30, 2026, are available online at www.bmo.com/investorrelations, on the Canadian Securities Administrators' website at www.sedarplus.ca, and on the EDGAR section of the U.S. Securities and Exchange Commission's website at www.sec.gov. Financial Results Highlights Second Quarter 2026 compared with Second Quarter 2025: Reported net income1 of $2,630 million, an increase of 34% from $1,962 million; adjusted net income1 of $2,733 million, an increase of 34% from $2,046 million Reported earnings per share (EPS)2 of $3.53, an increase of 41% from $2.50; adjusted EPS1, 2 of $3.67, an increase of 40% from $2.62 Provision for credit losses (PCL) of $739 million, a decrease from $1,054 million Reported return on equity (ROE) of 13.0%, compared with 9.4%; adjusted ROE1 of 13.5%, compared with 9.8% Common Equity Tier 1 (CET1) Ratio3 of 13.0%, compared with 13.5% Declared a quarterly dividend of $1.71 per common share, an increase of $0.08 or 5% from the prior year and $0.04 or 2% from the prior quarter Year-to-Date 2026 compared with Year-to-Date 2025: Reported net income1 of $5,119 million, an increase of 25% from $4,100 million; adjusted net income1 of $5,284 million, an increase of 22% from $4,335 million Reported EPS2 of $6.92, an increase of 30% from $5.34; adjusted EPS1, 2 of $7.15, an increase of 26% from $5.66 PCL of $1,485 million, a decrease from $2,065 million Reported ROE of 12.5%, compared with 10.0%; adjusted ROE1 of 12.9%, compared with 10.6% TORONTO, May 27, 2026 /PRNewswire/ - BMO Financial Group (TSX:BMO) (NYSE:BMO) reported net income for the second quarter ended April 30, 2026 was $2,630 million, compared with $1,962 million in the prior year, and EPS of $3.53, compared with $2.50.

Soft economic conditions and greater uncertainty will take the spotlight as banks report earnings, shifting focus to credit-loss provisions.