Bank of Montreal
- Open
- 173.22
- Day high
- 174.27
- Day low
- 171.89
- Prev close
- 173.46
- Volume
- 690K
- Mkt cap
- $121.1B
- P/E (TTM)
- 19.6
- EPS (TTM)
- $8.83
- P/B
- 1.9
- P/S
- 2.1
- Yield
- 2.80%
- Per share
- $4.83
Bank of Montreal (BMO) is a Financial Services company listed on NYSE. The stock is up 45% over the past year. Drillr has 1 published research article covering BMO.
Bank of Montreal (BMO) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
BMO earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Aug 25, 2026 | $2.71 | $2.84 | +4.8% | $7.1B | +2.4% |
| May 27, 2026 | $2.80 | $2.68 | -4.3% | $7.0B | +0.9% |
| Feb 25, 2026 | $2.35 | $2.55 | +8.5% | $7.2B | +6.5% |
| Dec 4, 2025 | $2.16 | $2.36 | +9.3% | $9.3B | +37.7% |
| Aug 26, 2025 | $2.12 | $2.33 | +9.9% | $8.9B | +36.8% |
| May 28, 2025 | $1.84 | $1.84 | +0.0% | $8.7B | +34.9% |
| Feb 25, 2025 | $1.70 | $2.14 | +25.9% | $9.2B | +54.9% |
| Dec 5, 2024 | $1.75 | $1.39 | -20.6% | $8.3B | +38.5% |
| May 29, 2024 | $2.01 | $1.88 | -6.3% | $5.7B | -5.5% |
| Feb 27, 2024 | $2.23 | $1.90 | -14.9% | $7.6B | +61.4% |
| Dec 1, 2023 | $2.06 | $2.07 | +0.4% | $8.3B | +80.6% |
| Aug 29, 2023 | $2.27 | $2.08 | -8.3% | $8.1B | +73.3% |
Bank of Montreal company profile
Overview
Bank of Montreal (TSE:BMO) is one of Canada's oldest and largest financial institutions, founded in 1817 in Montreal. As the eighth-largest bank in North America by assets, BMO has grown from a regional Canadian bank into a major North American financial services provider. The bank significantly expanded its U.S. presence through the 2023 acquisition of Bank of the West from BNP Paribas for approximately $16.3 billion, adding substantial scale to its American operations. Today, BMO operates through approximately 900 branches and 3,300 automated banking machines across Canada and the United States, serving millions of personal, commercial, and institutional clients with a comprehensive suite of financial services.
Business
Bank of Montreal operates as a diversified financial services company providing traditional banking, wealth management, and capital markets services primarily across North America. The banking industry serves as the financial intermediary in the economy, taking deposits from savers and lending to borrowers while providing various financial services for fees. BMO's business is organized into several key segments. **Canadian Personal and Commercial Banking** represents the largest segment, generating approximately 45-50% of total revenue, offering checking and savings accounts, mortgages, business loans, credit cards, and commercial banking services to individuals and businesses across Canada. **U.S. Personal and Commercial Banking**, significantly expanded through the Bank of the West acquisition, accounts for roughly 25-30% of revenue and provides similar services to American customers, with particular strength in California and the Midwest. **BMO Wealth Management** contributes about 10-15% of revenue, offering investment advisory services, portfolio management, trust and estate services, and insurance products to high-net-worth individuals and institutions. The **Capital Markets** division, also generating 10-15% of revenue, provides investment banking services including underwriting, trading, research, and advisory services to corporate, institutional, and government clients. This includes debt and equity capital raising, mergers and acquisitions advisory, and market-making activities in various financial instruments. The bank also maintains a **Corporate Services** segment that handles treasury functions, technology investments, and other enterprise-wide activities, though this typically represents a small portion of overall revenue and sometimes operates at a loss due to its support function nature.
Revenue model
BMO generates revenue through multiple streams typical of diversified banks. **Net interest income** represents the largest revenue source, earned by borrowing money at lower rates (through customer deposits and wholesale funding) and lending at higher rates (through mortgages, business loans, and credit cards). This spread between borrowing and lending rates, known as net interest margin, is fundamental to banking profitability. **Fee-based revenue** constitutes the second major income stream, including account maintenance fees, transaction fees, credit card interchange fees, mortgage origination fees, and wealth management advisory fees. The Capital Markets division generates revenue through trading profits, underwriting fees, and advisory fees from investment banking transactions. BMO's customers span individual consumers, small and medium businesses, large corporations, and institutional investors. Personal banking customers pay for loans, mortgages, and various banking services, while commercial clients pay for business loans, cash management, and specialized financial solutions. Wealth management clients pay asset-based fees and performance fees, while capital markets clients pay transaction-based fees and spreads on trading activities. Several factors influence BMO's profitability margins. **Interest rate environments** significantly impact net interest margins - rising rates generally benefit banks by increasing loan yields faster than deposit costs, while falling rates can compress margins. **Credit quality** affects provisions for loan losses, with economic downturns leading to higher credit costs and reduced profitability. **Regulatory capital requirements** influence the bank's ability to leverage its balance sheet and grow lending. **Competition** from other banks, credit unions, and fintech companies can pressure both lending margins and fee income. **Economic growth** drives loan demand and reduces credit losses, while recessions have the opposite effect. The recent Bank of the West integration presents both opportunities for revenue synergies and risks from execution challenges.
Competitive moat
BMO possesses a **moderate competitive moat** built on several defensive characteristics typical of established banks, though it faces increasing competitive pressures. The bank benefits from **regulatory barriers to entry** in both Canadian and U.S. markets, where banking licenses are difficult to obtain and heavily regulated, limiting new competitors. BMO's **extensive branch network** and long-established customer relationships create switching costs, as consumers and businesses often maintain banking relationships for decades due to the inconvenience of changing financial providers. The bank's **scale economies** in technology, compliance, and operations provide cost advantages over smaller competitors, while its **diversified revenue streams** across personal banking, commercial lending, wealth management, and capital markets reduce dependence on any single business line. BMO's **strong brand recognition** in Canada, where it ranks among the "Big Six" banks, provides customer acquisition advantages and pricing power. However, BMO's moat faces significant challenges. **Digital disruption** from fintech companies and technology giants threatens traditional banking relationships, particularly in payments, lending, and wealth management. **Low switching costs** for many banking products, especially deposits and simple lending, make customer acquisition and retention increasingly competitive. The **commoditized nature** of basic banking services limits pricing power, while **regulatory restrictions** on fees and interest rates can compress margins. The recent U.S. expansion through Bank of the West acquisition presents both opportunities and risks to the moat. While it provides scale and market presence, BMO faces intense competition from larger, well-established U.S. banks like JPMorgan Chase, Bank of America, and Wells Fargo, which have stronger market positions and greater resources. The integration execution risk and cultural differences between Canadian and American banking markets could weaken rather than strengthen BMO's competitive position if not managed effectively.
Risks & safety
BMO demonstrates **solid financial stability** with adequate capital buffers and strong liquidity, though elevated credit provisions present near-term earnings pressure. **Capital and Solvency:** • CET1 ratio of 13.6% (Q1 2025) well above regulatory minimums of ~11.5% • Total assets of $1.03 trillion with shareholders' equity of $61.3 billion • Debt-to-equity ratio of 3.13x, typical for large banks • No immediate solvency concerns given strong capital position **Liquidity and Cash Position:** • Cash and short-term investments of $55.8 billion providing substantial liquidity buffer • Strong deposit base of over $600 billion providing stable funding • Positive operating cash flows of $3.4 billion in Q1 2025 **Valuation Metrics:** • P/E ratio of 12.3x, reasonable for a major bank • Price-to-book ratio of 1.20x, slight premium to book value • ROE of 2.4% (quarterly), well below management's 15% medium-term target • Trading below historical valuation multiples due to credit concerns **Key Risk Factors:** • Elevated provision for credit losses at 47-54 basis points, above long-term average of 36 basis points • U.S. business integration risks from Bank of the West acquisition • Interest rate sensitivity and potential margin compression in changing rate environment
Recent development
BMO has undergone significant strategic transformation over the past few years, centered on its major U.S. expansion and operational improvements. The **Bank of the West acquisition** completed in 2023 represents the most significant development, adding $105 billion in assets and substantially expanding BMO's U.S. footprint, particularly in California. Management has successfully achieved the targeted $800+ million in cost synergies from this acquisition and is working toward $450-$550 million in revenue synergies over the next 3-5 years. The bank has implemented a **comprehensive ROE improvement strategy** targeting a return to 15% medium-term, up from current levels around 10-12%. This involves normalizing elevated credit provisions, achieving consistent positive operating leverage, optimizing balance sheet allocation, and capturing revenue synergies from the U.S. expansion. Management has been particularly focused on improving the underperforming U.S. segment, which currently generates lower returns than the Canadian operations. **Digital transformation initiatives** have accelerated, with BMO joining IBM's Quantum Network, launching innovative products like BMO Sync, and processing over 2 million AI-enabled customer conversations. The bank has invested heavily in technology and talent to compete with fintech disruptors and improve customer experience across digital channels. **Credit risk management** has been a major focus following elevated provision for credit losses, particularly related to pandemic-era lending vintages. Management has refined underwriting criteria, enhanced due diligence processes, and improved risk mitigation practices at loan inception. The bank expects credit losses to moderate through 2025 as these improvements take effect and economic conditions stabilize. BMO has also prioritized **capital allocation optimization**, launching share buyback programs while maintaining strong capital ratios above 13%. The bank increased its dividend by 5% and has committed to returning excess capital to shareholders while preserving flexibility for strategic opportunities and organic growth investments.
BMO company profile · for informational purposes only — not investment advice.
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