Bank lifted earnings while keeping capital buffers strong
BMO Financial Group closed fiscal 2025 with higher earnings, a fatter dividend and a still‑solid capital cushion, underscoring management’s continued focus on return on equity.
The bank reported full‑year net income of $8.73 billion, up 19% from $7.33 billion a year earlier, with earnings per share rising to $11.44 from $9.51.
Analysts surveyed by LSEG Data & Analytics had expected adjusted earnings of $3.03 per share in the fourth quarter, below the $3.28 BMO delivered.
That quarter saw profit of $2.30 billion, compared with $2.30 billion a year earlier, on revenue that edged higher to $9.34 billion.
Provisions for credit losses fell to $755 million from $1.52 billion.
BMO’s board declared a quarterly common share dividend of $1.67, a 2% increase from the prior quarter and 5% year over year, equivalent to $6.68 annually.
The bank also repurchased 8 million common shares in the quarter as it maintained a Common Equity Tier 1 ratio of 13.3%.
“Fiscal 2025 was a strong year for BMO, with consistent execution and growing momentum to achieve our commitments to shareholders,” said chief executive Darryl White.
“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.”
White previously said that the realignment of BMO’s US operations was designed to “support the rebuilding of our ROE” by combining US personal, business and wealth businesses under a unified structure.
BMO Financial Group has agreed to sell 138 of its US branches to First-Citizens Bank & Trust Co. The deal, which is expected to close by mid-2026 pending regulatory approvals, will see First Citizens assume approximately $5.7 billion USD in deposits and $1.1 billion USD in loans.
“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,” White said.
The Big Six, including TD Bank, RBC, Scotiabank, and National Bank also released their Q4 earnings report.
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