Bank of Montreal (BMO)

exceeded analysts’ expectations on Wednesday after reporting record revenue across its business segments and lowering the amount of money it keeps on hand to cover potential credit losses.

The bank said net income for the three months ending Jan. 31 was almost $2.5 billion, up 16 per cent from $2.1 billion during the same period a year earlier. Net earnings per share were $3.39.

BMO’s adjusted net income, which excludes the impact of nonrecurring items, increased 11 per cent to around $2.6 billion. Adjusted earnings per share were $3.48, higher than the $3.04 per share reported a year ago and above the $3.21 per share forecasted by analysts.

“BMO had a very strong start to the year. Building on last year’s momentum, we are executing on our commitments, delivering higher return on equity and double-digit earnings growth,” chief executive Darryl White said in a release. “We earned record revenue in each of our operating segments this quarter, with strong fee growth in our market-driven businesses.”

The bank declared a dividend of $1.67 per common share for the second quarter of 2026, unchanged from the previous quarter, but up eight cents from a year earlier. BMO also repurchased six million shares during the quarter.

Provision for credit losses (PCLs), the money banks set aside to cover potential loan losses, decreased to $746 million, down from $755 million in the fourth quarter of 2025 and substantially lower than the $1 billion BMO recorded a year ago.

Net income in the bank’s Canadian personal and commercial banking division grew eight per cent year over year to $948 million, driven by higher revenue and lower PCLs and partially offset by higher expenses.

  • Bank of Montreal hires ex-Barclays bankers for Japan push
  • BMO Capital Markets hires Wells Fargo’s Malik as operating chief

Net income increased 17 per cent to $742 million in the bank’s U.S. business segment, where BMO has been revamping its operations to improve profitability and return on equity.

• Email: jswitzer@postmedia.com