#Canada #Toronto #earnings report #BMO Financial Group #Q1 2026

BMO Financial Group: First Quarter 2026 Results

On February 25, 2026, BMO Financial Group released its first quarter results for the year, showcasing a robust performance across its various segments. The financial report includes the unaudited interim consolidated financial statements for the period ending January 31, 2026, highlighting a year-over-year growth that reflects the bank's solid strategic execution.

Financial Highlights

For Q1 2026, BMO reported a net income of $2,489 million, an impressive 16% increase from $2,138 million reported in the same quarter of 2025. Furthermore, adjusted net income stood at $2,551 million, marking an advancement of 11% compared to $2,289 million last year. The earnings per share (EPS) also saw a significant uptick, with reported EPS at $3.39, a notable rise of 20% from $2.83 year-on-year.

The provision for credit losses (PCL) reflected a positive trend, decreasing to $746 million from $1,011 million in the prior year, illustrating better risk management practices. Additionally, the return on equity (ROE) improved to 12.1%, up from 10.6% in the previous year, whereas the adjusted ROE climbed to 12.4% from 11.3%.

Business Segments Performance

BMO's various business segments performed strongly:

• - Canadian Personal and Commercial: Reported net income was $948 million, with an increase of 8% from last year driven by a 7% rise in revenue.

• - U.S. Banking: Generated a reported net income of $742 million, a substantial 17% rise, buoyed by effective credit loss provisions.

• - Wealth Management: Achieved a reported net income of $352 million, up 7% from 2025, benefitting from strong market conditions.

• - Capital Markets: Recorded a net income of $657 million, an increase of 11%, mainly attributed to heightened revenue in global trading and corporate banking sectors.

• - Corporate Services: Reduced its net loss significantly to $210 million, compared to a loss of $291 million last year.

Strategic Initiatives and Outlook

CEO Darryl White emphasizes that these results mark a strong start to the fiscal year, driven by strategic advancements and operational efficiencies. The bank maintained its focus on managing expenses while simultaneously investing in technology and talent, enabling it to create value for clients and shareholders alike.

BMO also announced a dividend of $1.67 per common share for Q2 2026, which reflects a 5% increase from the previous year. This ongoing commitment to returning capital to shareholders signals BMO's confidence in sustained profitability and growth.

The bank's proactive approach to credit management and investment opportunities positions it well to navigate current economic challenges and capitalize on emerging market trends. BMO’s performance in Q1 serves as a testament to its unwavering commitment to enhancing shareholder value through disciplined execution of its business strategies.

Conclusion

BMO Financial Group's Q1 2026 earnings reflect not only solid financial results but also a strategic focus on future growth and operational excellence. As the company continues to invest in key areas and manage risks judiciously, stakeholders can look forward to positive developments in the coming quarters.