Bank Of Montreal · TSX:BMO
Bank Of Montreal — BMO Financial Group — Q3 2026 Earnings Presentation
49 slides from Bank Of Montreal's earnings presentation, Aug 25, 2026
Slide 1: Financial Presentation
BMO Financial Group Financial Presentation For the Quarter Ended July 31, 2026 August 25, 2026
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements Bank of Montreal’s public communications often include written or oral forward-looking statements. Statements of this type are included in this document and may be included in other filings with Canadian securities regulators or the U.S. Securities and Ex
Slide 3: Overview
Overview Darryl White Chief Executive Officer Q3 2026 Financial Presentation 3
Slide 4: Delivering shareholder value through sustainable profitable growth
Delivering shareholder value through sustainable profitable growth Q3’26 Highlights EPS Y/Y Net Income Y/Y • Adjusted1 EPS up 22% Y/Y (reported down 24%) Adjusted1 $3.96 ↑22% Adjusted1 $2.9B ↑19% • PPPT2 up 13% Y/Y (reported down 17%) Reported $2.38 ↓24% Reported $1.8B ↓25% • Broad-based adjusted1 r
Slide 5: Executing on our commitments: Elevating returns and accelerating growth
Executing on our commitments: Elevating returns and accelerating growth Total Bank ROE (%) Earnings Per Share ($) +370 +200 +27% +22% bps bps 13.5% 14.0% 13.5% $11.32 0.2% 11.3% 12.0% 9.8% Severance $8.89 12.9% $0.21 12.4% Impact3 Severance 12.9% 12.4% Impact3 $3.96 Adjusted1 $3.67 Adjusted1 $3.23 1
Slide 6: Diversified revenue growth and record PPPT across our businesses
Diversified revenue growth and record PPPT1 across our businesses Canadian P&C U.S. Banking Wealth Management Capital Markets Revenue ($MM) Revenue (teb2, US$MM) Revenue ($MM) Revenue (teb2, $MM) +6% +5% +16% +20% 3,257 3,076 2,167 1,579 2,127 2,059 124 230 1,365 1,776 867 938 209 145 790 1,155 721
Slide 7: Continued progress driving value from AI
Continued progress driving value from AI Personalizing Augmenting Automating our client experiences our teams our business Leveraging data in advanced models to Embedding AI into everyday work across Driving scaled automation of routine tasks personalize the client experience and our bank to elevate
Slide 8: Focused on three priorities to achieve our medium-term objectives
Focused on three priorities to achieve our medium-term objectives Growing & Innovating for Optimizing deepening client business value performance relationships • Strong deposit-led client growth in • Official launch of BMO Blue Rewards • Executing efficiency program, Canadian P&BB; integrated World
Slide 9: Financial Overview
Financial Overview Rahul Nalgirkar Chief Financial Officer Q3 2026 Financial Presentation 9
Slide 10: Q3'26 – Financial Highlights
Q3’26 – Financial Highlights Continued momentum with double-digit PPPT1 growth, positive operating leverage and ROE expansion Y/Y Highlights: Reported Adjusted2 • Adjusted2 net income up 19% (reported down 25%) ($MM) Q3’26 Y/Y Q/Q Q3’26 Y/Y Q/Q – Q3’26 adjusted2 items included $973MM after-tax charg
Slide 11: Balance Sheet
Balance Sheet Good loan and core operating deposit growth across businesses • Gross loans and acceptances up 3% Y/Y Average Gross Loans and Acceptances ($B) – Positive U.S. commercial loan growth 8 00.0 679.7 681.2 679.4 680.7 697.7 – Growth across Canadian commercial and consumer balances 700.0 82.
Slide 12: Net Interest Income
Net Interest Income Y/Y NII growth driven by margin expansion and loan growth NII ($MM) and NIM ex. Global Markets and Insurance (%)1 12,2 00 11,7 00 11,2 00 3.0 0 2.30 2.33 2.29 2.26 10,7 00 • NII ex. Global Markets up 5% Y/Y 10,2 00 2.21 9,70 0 – Higher net interest margin 9,20 0 2.0 0 8,70 0 8,20
Slide 13: Non-Interest Revenue
Non-Interest Revenue Strong growth in wealth management and capital markets fees Non-Interest Revenue by Category ($MM) Y/Y Highlights: Reported 3,492 3,845 4,181 4,299 4,329 • Adjusted1 non-interest revenue up 26% (reported up 24%) Adjusted1 3,492 3,845 4,197 4,306 4,392 – Higher trading non-intere
Slide 14: Non-Interest Expense
Non-Interest Expense Delivering positive operating leverage while investing for growth Y/Y Highlights: Non-Interest Expenses ($MM) • Adjusted1 expenses up 9% (reported up 31%) 9% Adjusted1 – Higher performance-based compensation and the stronger U.S. dollar 31% Reported 6% Adjusted1 contributed 3% t
Slide 15: Capital Position
Capital Position Strong capital generation supporting business growth and shareholder returns Q/Q Highlights: Common Equity Tier 1 (CET1) Ratio1 • Q3’26 CET1 ratio1 of 13.0%, unchanged from Q2’26 primarily reflecting: +33 bps – Internal capital generation Offset by – 3.8MM common shares repurchased
Slide 16: Canadian Personal & Commercial Banking
Canadian Personal & Commercial Banking Continued momentum in PPPT2 growth and lower PCL Y/Y Highlights: Reported Adjusted1 • Adjusted1 net income up 15% (reported up 16%) ($MM) Q3’26 Y/Y Q/Q Q3’26 Y/Y Q/Q • Adjusted1 and reported PPPT2 up 7% Net interest income 2,558 4% 5% 2,558 4% 5% • Revenue up 6
Slide 17: U.S. Banking
U.S. Banking Continued ROE improvement with commercial loan growth, higher margins, and positive operating leverage Y/Y Highlights (U.S. Dollars): Reported Adjusted1 1 • Adjusted net income up 9% (reported up 11%) (US$MM) Q3’26 Y/Y Q/Q Q3’26 Y/Y Q/Q • Adjusted1 PPPT2 up 7% (reported up 9%) Net inter
Slide 18: Wealth Management
Wealth Management Continued strong performance driven by higher markets and growth in client assets Y/Y Highlights: Reported Adjusted1 • Adjusted1 net income up 22% (reported up 4%) ($MM) Q3’26 Y/Y Q/Q Q3’26 Y/Y Q/Q – The acquisition of Burgundy increased revenue, expenses and AUM Wealth and Asset M
Slide 19: Capital Markets
Capital Markets Continued PPPT2 performance driven by strong equities trading and debt underwriting activities Y/Y Highlights: Reported Adjusted1 • Adjusted1 net income up 45% (reported up 46%) ($MM) Q3’26 Y/Y Q/Q Q3’26 Y/Y Q/Q • Adjusted1 PPPT2 up 39% (reported up 40%) Global Markets 1,337 27% 1% 1
Slide 20: Corporate Services
Corporate Services • Adjusted1 net loss of $178MM for the quarter, compared with net loss of Reported Adjusted1 $123MM in the prior year ($MM) Q3’26 Q2’26 Q3’25 Q3’26 Q2’26 Q3’25 • Reported net loss of $1,151MM for the quarter, compared with reported net loss of $120MM in the prior year Revenue (teb
Slide 21: Risk Overview
Risk Overview Piyush Agrawal Chief Risk Officer Q3 2026 Financial Presentation 21
Slide 22: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) Lower impaired provisions Q/Q • Q3’26 PCL ratio on impaired loans1 of 41 bps, decreased 4 bps Q/Q PCL on Impaired Loans ($MM) 45 44 44 45 Provisions for Credit Losses (PCL) 41 1 ,200 50 45 773 1 ,000 40 750 739 734 708 35 By Operating Segment 8 00 30 Q3’25 Q4’25 Q1’
Slide 23: Allowance and Provision on Performing Loans
Allowance and Provision on Performing Loans Strong coverage on performing loans • $14MM provision for credit losses on performing loans was driven by changes in the macroeconomic outlook, partially offset by improvement in portfolio credit quality Coverage Ratios • Strong coverage on performing loan
Slide 24: Gross Impaired Loans and Formations
Gross Impaired Loans and Formations Stable formations and lower gross impaired loans Q/Q • Gross impaired loans (GIL) ratio3 at 97 bps, down 4 bps Q/Q Formations ($MM) • B&G watchlist continued to moderate, down $1B Q/Q 2,500 1,796 1,835 1,452 1,452 2,000 Formations Gross Impaired Loans 1,429 By Ind
Slide 25: Appendices
Appendices Q3 2026 Financial Presentation 25
Slide 26: Loan Portfolio Overview
Loan Portfolio Overview • Loan portfolio is well-diversified by product, industry and geography Gross Loans and Acceptances by Operating Segment • Exposure to tariff impacted sectors is limited – Wholesale borrowers most sensitive to tariffs4 represent less than 1% of total loans Gross Loans & Accep
Slide 27: Business and Government Portfolio Overview
Business and Government Portfolio Overview B&G Portfolio Industry Diversification Portfolio Spotlights • B&G portfolio is well-diversified by industry and geography Non-Bank Financial Institutions (NBFI) ($77.4B) • 54% of portfolio is investment grade-rated • Well-diversified products with a common
Slide 28: Commercial Real Estate
Commercial Real Estate • Commercial Real Estate (CRE) portfolio of $79.9B represents 11% of total gross loans & CRE by Geography1 acceptances • Well-managed with consistent and conservative underwriting standards; investment grade (47%), watchlist (3%) and impaired (1%) • Portfolio is well-diversifi
Slide 29: Canadian Consumer Portfolio Overview
Canadian Consumer Portfolio Overview • Total Canadian Consumer lending portfolio balances of $246.3B, representing 35% of total gross loans & acceptances – 90% of the portfolio is secured – 90+ day delinquency rate for the portfolio at 61 bps Personal Lending – Average FICO score for the portfolio r
Slide 30: Canadian Residential Secured Lending Portfolio Overview
Canadian Residential Secured Lending Portfolio Overview • Total Canadian residential-secured lending portfolio of $218.8B, representing 31% of total Residential-Secured Lending by Region gross loans & acceptances 120 .0 $113.5B Revolving HELOC – Composed of 75% mortgages and 25% HELOCs 6% Amortizing
Slide 31: Canadian Mortgage Portfolio Profile
Canadian Mortgage Portfolio Profile • Residential mortgage portfolio of $164.2B Mortgage Maturity Schedule – 24% insured – Loan-to-Value (LTV)1 on uninsured of 63% 60.0 53.2 – 63% of the mortgage portfolio has an effective remaining amortization of 25 years or less 42.3 50. 0 Variable Rate • 22% of
Slide 32: Trading-Related Net Revenue and Value-at-Risk
Trading-Related Net Revenue and Value-at-Risk1 May 1, 2026 to July 31, 2026 (pre-tax basis and in millions of Canadian dollars) 50 40 30 20 10 0 (10) (20) (30) (40) Daily Revenue Total Trading VaR 1 Refer to glossary on pages 42-43 for description of this measure Q3 2026 Financial Presentation 32
Slide 33: Canadian Personal and Commercial Banking Performance
Canadian Personal and Commercial Banking Performance Net Income ($MM) and ROE (%) Reported Revenue ($MM) by Business Reported Revenue NII/NIR ($MM) and NIM (%) 2.90 2.88 2.90 2.84 2.84 19.9 22.7 21.5 22.9 18.1 3,258 3,257 3,258 3,097 3,257 22.8 3,076 3,102 3,097 3,076 3,102 19.8 22.6 21.4 16.9 617 6
Slide 34: U.S. Banking Performance
U.S. Banking Performance Net Income (US$MM) and ROE (%) Reported Revenue (teb)2 (US$MM) by Business Reported Revenue NII2/NIR (US$MM) and NIM (%) 9.8 3.82 3.87 4.00 4.03 4.02 9.2 9.3 8.9 8.5 2,167 2,059 2,072 2,105 2,084 2,167 2,059 2,072 2,105 2,084 9.2 8.5 8.6 209 219 217 221 230 460 8.2 442 463 4
Slide 35: Wealth Management Performance
Wealth Management Performance Net Income ($MM) and ROE (%) Reported Revenue ($MM) by Business 52.2 52.0 41.3 42.4 35.7 51.8 51.7 39.8 35.9 1,579 33.1 1,500 1,530 428 444 480 392 395 399 400 408 1,365 1,442 122 124 380 86 88 129 128 352 86 145 95 95 79 79 88 79 79 1,313 1,372 1,408 1,455 342 358 320
Slide 36: Capital Markets Performance
Capital Markets Performance Net Income ($MM) and ROE (%) Reported Revenue (teb)2 by Business ($MM) 16.8 16.7 16.1 14.8 16.7 16.6 2,212 2,114 12.7 16.0 2,127 14.5 1,776 1,819 12.6 772 792 790 721 782 657 660 638 641 645 649 525 536 442 446 1,440 1,322 1,337 1,055 1,037 Q3'25 Q4'25 Q1'26 Q2'26 Q3'26 Q
Slide 37: Interest Rate Sensitivity
Interest Rate Sensitivity • Earnings benefit/exposure to an incremental +/- 100 bps rate shock reflects a relatively • Long-term investment rates increased Q/Q; forecast remains higher than historical levels neutral position and continues to support NIM • BMO’s strategy emphasizes margin stability;
Slide 38: Asset Yields and Liabilities Costs
Asset Yields1 and Liabilities Costs2 Average Earning Assets ($B) and Yield1 (%) Average Liabilities ($B) and Costs2 (%) 4.85% Yield on 4.72% Total Cost on 4.51% 4.59% 4.54% 3.01% Average 2.89% 2.78% 2.73% Total 2.65% Earning Liabilities Assets 1,438 1,484 1,380 1,376 1,425 1,304 1,334 1,343 1,349 1,
Slide 39: Our Purpose
Our Purpose For a Thriving Economy For a Sustainable Future For Stronger Communities Provide access to capital and Be our clients’ lead partner in Act as a catalyst for progress in valuable financial advice their pursuit of energy and the communities we serve climate resilience • Named one of the Wo
Slide 40: Endnotes
Endnotes Slide 4 Slide 17 5. Allowance on Performing Loans (APL) ratio as at July 31, 2026 3. Taxable equivalent basis (teb) amounts (Q3’26 US$4MM; Q2’26 US$4MM; Q3’25 US$6MM) were recorded in net interest 6. On August 25, 2026, BMO announced its intention to establish a new normal course issuer bid
Slide 41: Endnotes
Endnotes Slide 31 1. Current average loan-to-value (LTV) is the ratio of outstanding mortgage balance to the original property value indexed using Teranet data. Portfolio LTV is the combination of each individual mortgage LTV weighted by the mortgage balance 2. The average payment increase reflects
Slide 42: Glossary
Glossary Adjusted Earnings and Measures Gross Impaired Loans and acceptances (GIL) ratio Adjusted earnings and Measures are non-GAAP and exclude certain specified items from revenue, non-interest expense, Gross Impaired Loans (GIL) Ratio is calculated as gross impaired loans and acceptances as a per
Slide 43: Glossary
Glossary Return on Tangible Common Equity (ROTCE) Return on Tangible Common Equity (ROTCE) is a non-GAAP measure and calculated as net income available to common shareholders, adjusted for the amortization of acquisition-related intangible assets and any impairments, as a percentage of average tangi
Slide 44: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Results and measures in this document are presented on a generally accepted accounting principles (GAAP) basis. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from our audited annual consolidated financial statements and ou
Slide 45: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Reported and Adjusted Results and PPPT Reconciliations – Total Bank C$MM unless otherwise stated Q3’26 Q2’26 Q1’26 Q4’25 Q3’25 YTD 2026 YTD 2025 F2025 F2024 Adjusting Items Net interest income 5,567 5,268 5,643 5,496 5,496 16,478 15,991 21,487 19,468 Non-interes
Slide 46: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Reported and Adjusted Results, PPPT and Return on Equity Reconciliations – Operating Segments C$MM unless otherwise stated Q3’26 Q2’26 Q1’26 Q4’25 Q3’25 C$MM unless otherwise stated Q3’26 Q2’26 Q1’26 Q4’25 Q3’25 Canadian Reported Revenue (A) 3,257 3,097 3,258 3,
Slide 47: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Reported and Adjusted Results Reconciliations - Corporate Services and U.S. Operations C$MM unless otherwise stated Q3’26 Q2’26 Q1’26 Q4’25 Q3’25 C$MM unless otherwise stated Q3’26 Q2’26 Q1’26 Q4’25 Q3’25 Corporate Reported Revenue (101) (33) (42) 103 (59) Total
Slide 48: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Return on Equity and Return on Tangible Common Equity Reconciliation C$MM unless otherwise stated Q3’26 Q2’26 Q3’25 YTD 2026 F2025 F2024 Total Bank Reported Net Income 1,750 2,630 2,330 6,869 8,725 7,327 Net income attributable to non-controlling interest in sub
Slide 49: BMO Investor Relations
BMO Investor Relations www.bmo.com/investorrelations E-mail: investor.relations@bmo.com Q3 2026 Financial Presentation 49