Bank of Montreal (NYSE:BMO) reported fiscal first-quarter 2026 adjusted earnings per share of Cdn$3.48, exceeding analyst expectations of Cdn$3.23.
Revenue for the quarter totaled Cdn$9.82 billion, beating the consensus estimate of Cdn$9.43 billion and increasing 6% from Cdn$9.27 billion recorded in the same period a year earlier.
Shares of the bank rose 1.19% in premarket trading following the announcement.
Adjusted net income climbed 11% year on year to Cdn$2.55 billion from Cdn$2.29 billion, while reported net income increased 16% to Cdn$2.49 billion compared with Cdn$2.14 billion in the prior-year quarter.
Provisions for credit losses declined to Cdn$746 million from Cdn$1.01 billion a year earlier, reflecting improved credit performance across the bank’s portfolio.
“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,” said Darryl White, CEO of BMO Financial Group.
Adjusted return on equity rose to 12.4%, up from 11.3% in the first quarter of fiscal 2025, while reported ROE improved to 12.1% from 10.6%. All business segments delivered record revenue during the quarter, supported by strong fee income in market-sensitive operations.
Canadian Personal and Commercial Banking generated adjusted net income of Cdn$951 million, an 8% increase year on year driven by a 7% rise in revenue.
Adjusted net income in U.S. Banking advanced 13% to Cdn$802 million, while Wealth Management posted a 16% increase to Cdn$380 million. Capital Markets reported adjusted net income growth of 11%, reaching Cdn$660 million.
BMO’s Common Equity Tier 1 ratio stood at 13.1% as of January 31, 2026, compared with 13.6% in the same quarter a year earlier. The bank also declared a fiscal second-quarter 2026 dividend of Cdn$1.67 per common share, representing a 5% increase from the prior year.