BMO Financial Group Reports Fourth Quarter and Fiscal 2025 Results

Fourth Quarter 2025 Earnings Release

BMO's 2025 audited annual consolidated financial statements and accompanying Management Discussion and Analysis (MD&A) are available online at  www.bmo.com/investorrelations and at www.sedarplus.ca.

Financial Results Highlights

Fourth Quarter 2025 compared with Fourth Quarter 2024:

• Reported net income¹ of $2,295 million, compared with $2,304 million; adjusted net income¹ of $2,514 million, an increase of 63% from $1,542 million
• Reported earnings per share (EPS)² of $2.97, an increase of 1% from $2.94; adjusted EPS^{1, 2} of $3.28, an increase of 73% from $1.90
• Provision for credit losses (PCL) of $755 million, compared with $1,523 million
• Reported return on equity (ROE) of 10.7%, compared with 11.4%; adjusted ROE¹ of 11.8%, compared with 7.4%
• Common Equity Tier 1 (CET1) Ratio³ of 13.3%, compared with 13.6%
• Declared a quarterly dividend of $1.67 per common share, an increase of $0.04 or 2% from the prior quarter, and an increase of $0.08 or 5% from the prior year

Fiscal 2025 compared with Fiscal 2024:

• Reported net income¹ of $8,725 million, an increase of 19% from $7,327 million; adjusted net income¹ of $9,248 million, an increase of 24% from $7,449 million
• Reported EPS² of $11.44, an increase of 20% from $9.51; adjusted EPS^{1, 2} of $12.16, an increase of 26% from $9.68
• PCL of $3,617 million, compared with $3,761 million
• Reported ROE of 10.6%, compared with 9.7%; adjusted ROE¹ of 11.3%, compared with 9.8%

TORONTO, Dec. 4, 2025 /PRNewswire/ - BMO Financial Group (TSX:BMO) (NYSE:BMO) reported net income for fiscal 2025 was $8,725 million, compared with $7,327 million in the prior year, and EPS² of $11.44, compared with $9.51. Reported ROE was 10.6%, compared with 9.7% in fiscal 2024. Adjusted net income for fiscal 2025 was $9,248 million and adjusted EPS was $12.16, an increase from $7,449 million and $9.68, respectively, in the prior year. Adjusted ROE was 11.3%, compared with 9.8% in fiscal 2024.

Reported net income for the fourth quarter of 2025 was $2,295 million, compared with $2,304 million in the prior year, and reported EPS was $2.97, compared with $2.94. Adjusted net income for the fourth quarter was $2,514 million and adjusted EPS was $3.28, an increase from $1,542 million and $1.90, respectively, in the prior year.

"Fiscal 2025 was a strong year for BMO, with consistent execution and growing momentum to achieve our commitments to shareholders. We delivered both robust earnings growth and improved return on equity, driven by significant pre-provision, pre-tax earnings expansion, and sustained positive operating leverage. Revenue increased across all of our diversified businesses reflecting our success in delivering world-class client experiences and deepening relationships. We're deploying capital to drive future growth and higher shareholder returns," said Darryl White, CEO, BMO Financial Group.

"We enter 2026 in a position of financial strength, with a focused strategy and a winning culture that continues to grow and attract talent across the bank. At the same time, we're building on our investments in digital and AI-powered solutions to drive value for our clients. We're particularly excited to welcome the teams and clients of Burgundy Asset Management to BMO, as we continue to expand our private wealth solutions. These strengths position us to accelerate our performance and create long-term shareholder value, while continuing to support the clients and communities we serve," concluded Mr. White.

Concurrent with the release of results, BMO announced a first quarter 2026 dividend of $1.67 per common share, an increase of $0.04 or 2% from the prior quarter and an increase of $0.08 or 5% from the prior year. The quarterly dividend of $1.67 per common share is equivalent to an annual dividend of $6.68 per common share. During the quarter, we purchased for cancellation 8.0 million common shares under the normal course issuer bid.

Fourth Quarter 2025 Performance Review

Adjusted results and ratios in this section are on a non-GAAP basis. Refer to the Non-GAAP and Other Financial Measures section for further information on adjusting items. The order in which the impact on net income is discussed in this section follows the order of revenue, expenses and provision for credit losses, regardless of their relative impact.

Effective the fourth quarter of 2025, BMO combined its U.S. wealth management business, previously reported within Wealth Management, with U.S. Personal and Commercial Banking to form a unified U.S. Banking operating segment. BMO now reports financial results for four operating segments: Canadian Personal and Commercial Banking, U.S. Banking, Wealth Management and Capital Markets. Financial results for prior periods have been reclassified to conform with the current presentation.

Canadian P&C

Reported net income was $752 million, relatively unchanged from the prior year, and adjusted net income was $800 million, an increase of $35 million or 5%. Results reflected a 7% increase in revenue, primarily driven by higher net interest income due to both higher margins and balance growth, partially offset by higher expenses and a higher provision for credit losses.

U.S. Banking

Reported net income was $807 million, an increase of $526 million from the prior year, and adjusted net income was $871 million, an increase of $518 million.

On a U.S. dollar basis, reported net income was $582 million, an increase of $372 million from the prior year, and adjusted net income was $627 million, an increase of $365 million. Results reflected a 3% increase in revenue, driven by higher non-interest revenue and net interest income, lower expenses and a lower provision for credit losses.

Wealth Management

Reported net income was $383 million, an increase of $82 million or 27% from the prior year, and adjusted net income was $384 million, an increase of $83 million or 28%. Wealth and Asset Management reported net income was $304 million, an increase of $56 million or 23%, reflecting higher revenue due to the impact of stronger global markets and net sales, balance growth and higher brokerage transaction volumes, partially offset by higher expenses. Insurance net income was $79 million, an increase of $26 million or 48% from the prior year, primarily due to favourable market movements in the current year and business growth.

Capital Markets

Reported net income was $521 million, an increase of $270 million from the prior year, and adjusted net income was $532 million, an increase of $262 million or 97%. Results reflected higher revenue in both Global Markets and Investment and Corporate Banking, higher expenses and a lower provision for credit losses. 

Corporate Services

Reported net loss was $168 million, compared with reported net income of $721 million in the prior year, with the change reflecting a reversal of a legal provision in the prior year. Adjusted net loss was $73 million, compared with adjusted net loss of $147 million, with the change driven by higher treasury-related revenue, partially offset by higher expenses.

Capital

BMO's Common Equity Tier 1 (CET1) Ratio was 13.3% as at October 31, 2025, a decrease from 13.5% at the end of the third quarter of 2025, as internal capital generation was more than offset by the impact of the purchase of common shares for cancellation and higher source currency risk-weighted assets.

Regulatory Filings

BMO's continuous disclosure materials, including interim filings, annual Management's Discussion and Analysis and audited annual consolidated financial statements, Annual Information Form and Notice of Annual Meeting of Shareholders and Proxy Circular, are available on our website 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. Information contained in or otherwise accessible through our website (www.bmo.com), or any third-party websites mentioned herein, does not form part of this document.

Bank of Montreal uses a unified branding approach that links all of the organization's member companies. Bank of Montreal, together with its subsidiaries, is known as BMO Financial Group. In this document, the names BMO and BMO Financial Group, as well as the words "bank", "we" and "our", mean Bank of Montreal, together with its subsidiaries.

Caution Regarding Forward-Looking Statements 

Bank of Montreal's public communications often include written or oral forward-looking statements. Statements of this type are included in this document and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbor" provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements in this document may include, but are not limited to: statements with respect to our objectives and priorities for fiscal 2026 and beyond; our strategies or future actions; our targets and commitments (including with respect to net zero emissions); expectations for our financial condition, capital position, the regulatory environment in which we operate, the results of, or outlook for, our operations or the Canadian, U.S. and international economies; and include statements made by our management. Forward-looking statements are typically identified by words such as "will", "would", "should", "believe", "expect", "anticipate", "project", "intend", "estimate", "plan", "goal", "commit", "target", "may", "might", "schedule", "forecast", "outlook", "timeline", "suggest", "seek" and "could" or negative or grammatical variations thereof.

By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that our assumptions may not be correct, and that actual results may differ materially from such predictions, forecasts, conclusions or projections. We caution readers of this document not to place undue reliance on our forward-looking statements, as a number of factors – many of which are beyond our control and the effects of which can be difficult to predict – could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.

The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: general economic and market conditions in the countries in which we operate, including labour challenges and changes in foreign exchange and interest rates; political conditions, including changes relating to, or affecting, economic or trade matters, including tariffs, countermeasures and tariff mitigation policies; changes to our credit ratings; cyber and information security, including the threat of data breaches, hacking, identity theft and corporate espionage, as well as the possibility of denial of service resulting from efforts targeted at causing system failure and service disruption; technology resilience, innovation and competition; failure of third parties to comply with their obligations to us; disruptions of global supply chains; environmental and social risk, including climate change; the Canadian housing market and consumer leverage; inflationary pressures; changes in laws, including tax legislation and interpretation, or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, including if the bank were designated a global systemically important bank, and the effect of such changes on funding costs and capital requirements; changes in monetary, fiscal or economic policy; weak, volatile or illiquid capital or credit markets; the level of competition in the geographic and business areas in which we operate; exposure to, and the resolution of, significant litigation or regulatory matters, our ability to successfully appeal adverse outcomes of such matters and the timing, determination and recovery of amounts related to such matters; the accuracy and completeness of the information we obtain with respect to our customers and counterparties; our ability to successfully execute our strategic plans, complete acquisitions or dispositions and integrate acquisitions, including obtaining regulatory approvals, and realize any anticipated benefits from such plans and transactions; critical accounting estimates and judgments, and the effects of changes in accounting standards, rules and interpretations on these estimates; operational and infrastructure risks, including with respect to reliance on third parties; global capital markets activities; the emergence or continuation of widespread health emergencies or pandemics, and their impact on local, national or international economies, as well as their heightening of certain risks that may affect our future results; the possible effects on our business of war or terrorist activities; natural disasters, such as earthquakes or flooding, and disruptions to public infrastructure, such as transportation, communications, power or water supply; and our ability to anticipate and effectively manage risks arising from all of the foregoing factors.

We caution that the foregoing list is not exhaustive of all possible factors. Other factors and risks could adversely affect our results. For further information, please refer to the discussion in the Risks That May Affect Future Results section, and the sections related to credit and counterparty, market, liquidity and funding, operational non-financial, legal and regulatory compliance, strategic, environmental and social, and reputation risk in the Enterprise-Wide Risk Management section of BMO's 2025 Annual Report, all of which outline certain key factors and risks that may affect our future results. Investors and others should carefully consider these factors and risks, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. We do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by the organization or on its behalf, except as required by law. The forward-looking information contained in this document is presented for the purpose of assisting shareholders and analysts in understanding our financial position as at and for the periods ended on the dates presented, as well as our strategic priorities and objectives, and may not be appropriate for other purposes.

Material economic assumptions underlying the forward-looking statements contained in this document include those set out in the Economic Developments and Outlook section and the Allowance for Credit Losses section of BMO's 2025 Annual Report. Assumptions about the performance of the Canadian and U.S. economies, as well as overall market conditions and their combined effect on our business, are material factors we consider when determining our strategic priorities, objectives and expectations for our business. In determining our expectations for economic growth, we primarily consider historical economic data, past relationships between economic and financial variables, changes in government policies, and the risks to the domestic and global economy.

Financial Highlights

Non-GAAP and Other Financial Measures

Results and measures in this document are presented on a generally accepted accounting principles (GAAP) basis. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from our audited annual consolidated financial statements and our unaudited interim consolidated financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). References to GAAP mean IFRS. We use a number of financial measures to assess our performance, as well as the performance of our operating segments, including amounts, measures and ratios that are presented on a non‑GAAP basis, as described below. We believe that these non‑GAAP amounts, measures and ratios, read together with our GAAP results, provide readers with a better understanding of how management assesses results.

Non-GAAP amounts, measures and ratios do not have standardized meanings under GAAP. They are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, or as a substitute for, GAAP results.

Certain information contained in BMO's 2025 Annual Management's Discussion and Analysis dated December 4, 2025 for the period ended October 31, 2025, is incorporated by reference into this document. For further details on the composition of supplementary financial measures, refer to the Glossary of Financial Terms section of BMO's 2025 Annual MD&A, which is available online at www.bmo.com/investorrelations and at www.sedarplus.ca.

Adjusted measures and ratios

Management considers both reported and adjusted results and measures to be useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non‑interest expense and income taxes, as detailed in the following table. Adjusted results and measures presented in this document are non‑GAAP. Presenting results on both a reported and an adjusted basis permits readers to assess the impact of certain items on results for the periods presented, and to better assess results excluding those items that may not reflect ongoing business performance. As such, the presentation may facilitate readers' analysis of underlying trends. Except as otherwise noted, management's discussion of changes in reported results in this document applies equally to changes in the corresponding adjusted results.

Tangible common equity and return on tangible common equity

Tangible common equity is calculated as common shareholders' equity, less goodwill and acquisition-related intangible assets, net of related deferred tax liabilities. Return on tangible common equity (ROTCE) is calculated as net income available to common shareholders, adjusted for the amortization of acquisition-related intangible assets and any impairments, as a percentage of average tangible common equity. ROTCE is commonly used in the North American banking industry and is meaningful as a consistent measure of the performance of businesses, whether they were acquired or developed organically.

Adjusting Items

Adjusted results in the current quarter and prior periods excluded the following items:

• Acquisition and integration costs of $3 million ($4 million pre-tax) in Q4-2025. Prior periods included expense of $4 million ($5 million pre-tax) in Q3-2025, a reversal of $1 million ($2 million pre-tax) in Q2-2025, and expenses of $7 million ($10 million pre-tax) in Q1-2025, $27 million ($35 million pre-tax) in Q4-2024, $19 million ($25 million pre-tax) in Q3-2024, $26 million ($36 million pre-tax) in Q2-2024, and $57 million ($76 million pre-tax) in Q1-2024. Amounts are recorded in non-interest expense in the related operating segment: Burgundy in Wealth Management; Bank of the West in Corporate Services; AIR MILES in Canadian P&C; and Clearpool and Radicle in Capital Markets.
• Amortization of acquisition-related intangible assets of $123 million ($168 million pre-tax) in Q4-2025, including a $64 million impairment related to AIR MILES. Prior periods included $69 million ($93 million pre-tax) in Q3-2025, $81 million ($109 million pre-tax) in Q2-2025, $79 million ($106 million pre-tax) in Q1-2025, $92 million ($124 million pre-tax) in Q4-2024, $79 million ($107 million pre-tax) in Q3-2024 and Q2-2024, and $84 million ($112 million pre-tax) in Q1-2024. Amounts are recorded in non-interest expense in the related operating segment.
• Impact of divestitures related to the announced sale of 138 branches in select U.S. markets resulting in a write-down of goodwill of $102 million (pre-tax and after-tax) in Q4-2025, recorded in non-interest expense in Corporate Services.
• Impact of a U.S. Federal Deposit Insurance Corporation (FDIC) special assessment recorded in non-interest expense in Corporate Services. Q4-2025 included a partial reversal of a prior charge of $9 million ($12 million pre-tax). Prior periods included a $4 million ($5 million pre-tax) partial reversal in Q3-2025, $4 million ($5 million pre-tax) expense in Q2-2025, a $5 million ($7 million pre-tax) partial reversal in Q1-2025, a $11 million ($14 million pre-tax) partial reversal in Q4-2024, a $5 million ($6 million pre-tax) expense in Q3-2024, a $50 million ($67 million pre-tax) expense in Q2-2024 and a $313 million ($417 million pre-tax) expense in Q1-2024.
• Impact of aligning accounting policies for employee vacation across legal entities of $70 million ($96 million pre-tax) in Q1-2025, recorded in non-interest expense in Corporate Services.
• Impact of a lawsuit associated with a predecessor bank, M&I Marshall and Ilsley Bank, recorded in Corporate Services in the prior year. Q4-2024 included a reversal of the fiscal 2022 legal provision of $870 million ($1,183 million pre-tax), comprising interest expense of $589 million and non-interest expense of $594 million. Prior periods also included $13 million ($18 million pre-tax) in Q3-2024, comprising interest expense of $14 million and non-interest expense of $4 million, and $12 million ($15 million pre-tax) in Q2-2024 and $11 million ($15 million pre-tax) in Q1-2024, both comprising interest expense of $14 million and non-interest expense of $1 million.
• Net accounting loss of $136 million ($164 million pre-tax) on the sale of a portfolio of recreational vehicle loans related to balance sheet optimization in Q1-2024, recorded in non-interest revenue in Corporate Services.

Adjusting items in aggregate decreased net income by $219 million in the current quarter, compared with a $762 million increase in the prior year and a decrease of $69 million in the prior quarter. On a fiscal basis, adjusting items in aggregate decreased net income by $523 million, compared with a decrease of $122 million in the prior year.

Non-GAAP and Other Financial Measures ⁽¹⁾

Summary of Reported and Adjusted Results by Operating Segment

Summary of Reported and Adjusted Results by Operating Segment (Continued)

Return on Equity and Return on Tangible Common Equity

Return on Equity by Operating Segment ⁽¹⁾

Foreign Exchange

The table above indicates the relevant average Canadian/U.S. dollar exchange rates and the impact of changes in those rates on reported and adjusted results in BMO's U.S. operations, comprising U.S. Banking and the U.S. operations in Capital Markets and Corporate Services.

The Canadian dollar equivalents of BMO's U.S. operations results that are denominated in U.S. dollars increased in the fourth quarter of fiscal 2025, relative to the third quarter of fiscal 2025 and increased relative to the fourth quarter of fiscal 2024, due to changes in the Canadian/U.S. dollar exchange rate. References in this document to the impact of the U.S. dollar do not include U.S. dollar-denominated amounts recorded outside of BMO's U.S. operations.

Economically, our U.S. dollar income stream was not hedged against the risk of changes in foreign exchange rates during fiscal 2025 and fiscal 2024. Changes in exchange rates will affect future results measured in Canadian dollars, and the impact on those results is a function of the periods in which revenue, expenses and provisions for (or recoveries of) credit losses and income taxes arise.

Refer to the Enterprise-Wide Capital Management section of BMO's 2025 Annual MD&A for a discussion of the impact that changes in foreign exchange rates can have on BMO's capital position.

Net Income

Q4 2025 vs. Q4 2024

Reported net income was $2,295 million, a decrease of $9 million from the prior year, and adjusted net income was $2,514 million, an increase of $972 million or 63%. Reported earnings per share (EPS) was $2.97, an increase of $0.03 from the prior year, and adjusted EPS was $3.28, an increase of $1.38.

Reported results decreased, primarily due to the reversal of a legal provision in the prior year, the write-down of goodwill related to the announced sale of branches in certain U.S. markets in the current year and higher amortization of acquisition-related intangible assets.

The increase in adjusted net income reflected higher revenue and a lower provision for credit losses, partially offset by higher expenses. Reported and adjusted net income increased across all operating segments. On a reported basis, Corporate Services recorded a net loss in the current year, compared with net income in the prior year, primarily due to the items noted above, and a lower net loss on an adjusted basis.

Q4 2025 vs. Q3 2025

Reported net income decreased $35 million or 1% from the prior quarter, and adjusted net income increased $115 million or 5%. Reported EPS decreased $0.17 from the prior quarter, and adjusted EPS increased $0.05, including the impact of higher dividends on preferred shares and distributions on other equity instruments.

The decrease in reported net income was primarily due to the specified items noted above. The increase in adjusted net income reflected higher revenue and a lower provision for credit losses, partially offset by higher expenses. Reported and adjusted net income increased in Capital Markets, U.S. Banking and Wealth Management, and decreased in Canadian P&C. On a reported basis, Corporate Services recorded a higher net loss compared with the prior quarter, and a lower net loss on an adjusted basis.

Revenue  

Q4 2025 vs. Q4 2024

Reported and adjusted revenue was $9,341 million, an increase of $384 million or 4% from the prior year on a reported basis, and an increase of $973 million or 12% on an adjusted basis. Growth in reported revenue was impacted by the reversal of accrued interest related to a legal provision in the prior year. Reported and adjusted revenue increased across all operating segments. Revenue decreased in Corporate Services on a reported basis and increased on an adjusted basis.

Reported and adjusted net interest income was $5,496 million, relatively unchanged from the prior year on a reported basis due to the item noted above, and increased $647 million or 13% on an adjusted basis, driven by higher net interest margin, higher net interest income in Corporate Services, higher trading-related net interest income and balance growth in Canadian P&C and Wealth Management. Trading-related net interest income was $124 million, an increase of $179 million from the prior year.

BMO's overall reported net interest margin of 1.67% decreased 3 basis points from the prior year. Adjusted net interest margin, excluding trading-related net interest income and trading and insurance assets was 2.06%, an increase of 15 basis points, primarily due to higher deposit margins and higher net interest income in Corporate Services.

Reported and adjusted non-interest revenue was $3,845 million, an increase of $326 million or 9% from the prior year, with increases across most categories, primarily driven by higher wealth management fees, underwriting and advisory fee revenue, securities gains, excluding trading, and lower mark-downs on fair value loans, partially offset by lower trading revenue. Trading non-interest revenue of $557 million decreased $139 million from the prior year, offset in net interest income.

Q4 2025 vs. Q3 2025

Reported and adjusted revenue increased $353 million or 4% from the prior quarter. Revenue increased across all operating segments, and in Corporate Services.

Net interest income was unchanged from the prior quarter, with higher non-trading net interest income in each operating segment and in Corporate Services, offset by lower trading-related net interest income. Trading-related net interest income decreased $201 million from the prior quarter, partially offset in non-interest revenue.

BMO's overall reported net interest margin decreased 2 basis points from the prior quarter, due to lower trading net interest income. Adjusted net interest margin, excluding trading-related net interest income and trading and insurance assets increased 7 basis points, primarily due to higher net interest income and lower low-yielding assets in Corporate Services, and higher deposit margins.

Reported and adjusted non-interest revenue increased $353 million or 10% from the prior quarter, due to higher trading revenue, wealth management fees, securities commission revenue, and higher net gains on investments compared with the prior quarter. The prior quarter benefitted from the gain on the sale of a non-strategic portfolio of insurance contracts. Trading non-interest revenue increased $151 million from the prior quarter.

Change in Net Interest Income, Average Earning Assets and Net Interest Margin ⁽¹⁾