BMO Financial Group Reports Fourth Quarter and Fiscal 2025 Results

Executive Summary

• BMO Financial Group reported FY 2025 net income of $8,725 million, up 19% YoY, and adjusted net income of $9,248 million (+24%).
• Q4 2025 earnings per share (diluted) were $2.97 (reported) and $3.28 (adjusted), reflecting a 63% increase in adjusted EPS year‑over‑year.
• The bank declared a quarterly dividend of $1.67 per common share, a 5% rise YoY, and repurchased 8 million shares for cancellation.

Key Details

• Financial Highlights – Q4 2025 vs. Q4 2024
• Reported net income: $2,295 M (‑0.4% YoY)
• Adjusted net income: $2,514 M (+63% YoY)
• Provision for credit losses (PCL): $755 M, down from $1,523 M YoY
• Reported ROE: 10.7% (down from 11.4%); Adjusted ROE: 11.8% (up from 7.4%)
• Financial Highlights – FY 2025 vs. FY 2024
• Reported EPS (diluted): $11.44 (+20% YoY)
• Adjusted EPS (diluted): $12.16 (+26% YoY)
• CET1 Ratio: 13.3%, slight decline from 13.6% prior quarter
• Segment Performance
• Canadian P&C: Net income $752 M (flat YoY); revenue +7% YoY.
• U.S. Banking: Net income $807 M, up $526 M YoY; revenue +3% YoY.
• Wealth Management: Net income $383 M, up 27% YoY; assets under management grew 20% YoY to $390 B.
• Capital Markets: Net income $521 M, up 108% YoY; revenue +14% YoY.
• Corporate Services: Reported net loss $168 M (vs. $721 M profit prior year) due to goodwill write‑down and legal provision reversal.
• Capital Management
• CET1 Ratio: 13.3% as of Oct 31, 2025.
• Tier 1 Capital Ratio: 15.0%, Total Capital Ratio: 17.3%.
• Share repurchase: 8 M common shares cancelled in the quarter.
• Dividends & Shareholder Returns
• Quarterly dividend increased to $1.67 per share (annualized $6.68).
• Dividend payout ratio (adjusted) 49.6%, indicating higher retained earnings for growth.
• Operational Metrics
• Total revenue Q4 2025: $9,341 M (+4% YoY).
• Net interest income: $5,496 M (flat YoY); adjusted net interest margin rose to 2.06%.
• Non‑interest expense increased 26% YoY to $5,556 M, driven by higher technology and employee costs.
• Outlook & Guidance
• Management highlighted “robust earnings growth,” continued capital deployment, and expansion of private‑wealth capabilities (integration of Burgundy Asset Management).
• Emphasis on digital/AI initiatives and a focus on maintaining strong credit quality amid macro‑economic uncertainty.

Notable Quotes

“Fiscal 2025 was a strong year for BMO… we delivered both robust earnings growth and improved return on equity…” – Darryl White, CEO
“We’re building on our investments in digital and AI‑powered solutions to drive value for our clients…” – Darryl White, CEO