Bank Of Montreal · TSX:BMO
Bank Of Montreal — Q2 2025 Earnings Presentation
44 slides from Bank Of Montreal's earnings presentation, May 28, 2025
Slide 1: Investor Presentation Q2 25
BMO Financial Group Investor Presentation For the Quarter Ended April 30, 2025 May 28, 2025 Q2 25
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: Darryl White, Chief Executive Officer
Darryl White Chief Executive Officer Q2 25
Slide 4: Good year-to-date momentum across key performance metrics
Good year-to-date momentum across key performance metrics Strong execution against ROE rebuild strategies YTD EPS YTD PPPT2 Strong EPS and PPPT2 growth year-to-date +10% Y/Y +22% Y/Y • Revenue up 13% YTD, well-diversified across geographies and $5.14 $5.66 $6.4B $7.8B businesses Adjusted1 • U.S. Seg
Slide 5: Continued strength across our diversified businesses
Continued strength across our diversified businesses Canadian Personal & Commercial Banking U.S. Personal & Commercial Banking Revenue ($B) • 9% PPPT1 growth YTD Revenue (teb2, US$B) • 6% PPPT1 growth YTD 8% 2% 6.0 • Continued balance and customer • Strong core customer and checking 5.6 3.6 3.7 grow
Slide 6: Our Purpose
Our Purpose For a Thriving Economy For a Sustainable Future For an Inclusive Society Providing access to capital and Being our clients’ lead partner in Committing to zero barriers to valuable financial advice the transition to a net-zero world inclusion • Named one of the World’s Most Ethical Compan
Slide 7: Financial Results
Financial Results For the Quarter Ended April 30, 2025 Tayfun Tuzun Chief Financial Officer Q2 25
Slide 8: Q2 F2025 - Financial Highlights
Q2 F2025 - Financial Highlights Good performance with double-digit PPPT1 growth and positive operating leverage • Adjusted2 net income up 1% Y/Y Reported Adjusted2 (reported up 5%) ($MM) Q2 25 Y/Y Q/Q Q2 25 Y/Y Q/Q – Q2’25 adjusted2 net income excluded $81MM Revenue 8,679 9% (6)% 8,679 9% (6)% amort
Slide 9: Executing on ROE improvement path
Executing on ROE improvement path Total Bank ROE Progress against key initiatives 15%+ 10.6% • Strong positive operating leverage 9.8% • YTD 5.7% Adjusted1 (Reported 12.6%) Adjusted1 • Impaired PCL moderation since Q4’24 • Q2’25 Impaired PCL Ratio3 of 46 bps F2024 YTD Q2’25 Medium-Term Reported 9.7%
Slide 10: Balance Sheet
Balance Sheet Moderating loan growth and deposit optimization • Average gross loans and acceptances up 4% Y/Y or Average Gross Loans and Acceptances ($B) 3% excluding the impact of the stronger U.S. dollar, due to: 692.0 686.4 657.1 – 1% growth in Business & Government loans driven by growth in Cana
Slide 11: Net Interest Margin
Net Interest Margin1 • Adjusted2 NII ex. trading and insurance up 11% Y/Y mainly due to higher net interest margin, NII ($MM) and NIM ex. trading and insurance (%)1 balance growth in Canadian P&C and BMO 1.97 1.93 7,700 Wealth Management and the stronger U.S. 2. 1 7,200 1.82 1.83 2.13 1.97 6,700 dol
Slide 12: Non-Interest Revenue
Non-Interest Revenue • Non-interest revenue up 4% Y/Y; down 3% Non-Interest Revenue by Category ($MM) excluding trading 3,868 3,459 3,519 3,582 3,398 362 121 – Trading revenue up 37% Y/Y driven by 331 247 266 380 415 strong client activity across all businesses 371 332 352 1,099 1,043 – Brokerage, I
Slide 13: Non-Interest Expense
Non-Interest Expense • Adjusted1 expenses up 6% Y/Y Y/Y Change in Non-Interest Expense ($MM) (reported up 4%) 6% Adjusted1 – Stronger U.S. dollar and higher 4% Reported 2% Adjusted1 performance-based compensation - % Reported contributed 4% to the increase – Higher expenses due to employee- 4,907 Ad
Slide 14: Strong Q2'25 CET1 Ratio of 13.5%
Strong Q2’25 CET1 Ratio1 of 13.5% Common Equity Tier 1 Ratio1 • Q2’25 CET1 ratio1 of 13.5%, decreased +15 bps -23 bps from Q1’25 primarily reflecting: – Internal capital generation 13.6% More than offset by 13.5% – 7 million common shares repurchased -6 bps -1 bp – Higher source currency RWA Q1’25 I
Slide 15: Canadian Personal & Commercial Banking
Canadian Personal & Commercial Banking Good PPPT2 performance with higher margins, offset by higher PCL • Adjusted1 and reported net income Reported Adjusted1 down 10% Y/Y ($MM) Q2 25 Y/Y Q/Q Q2 25 Y/Y Q/Q • Adjusted1 and reported PPPT2 up 5% Y/Y Net interest income 2,359 10% (1)% 2,359 10% (1)% Non
Slide 16: U.S. Personal & Commercial Banking
U.S. Personal & Commercial Banking Positive operating leverage and PPPT2 growth driven by good NIM3 expansion Amounts that follow are in U.S. dollars: Reported Adjusted1 • Adjusted1 and reported net income (US$MM) Q2 25 Y/Y Q/Q Q2 25 Y/Y Q/Q down 4% Y/Y Net interest income (teb) 3 1,495 2% (3)% 1,49
Slide 17: BMO Wealth Management
BMO Wealth Management Strong performance with strong growth in client assets and balances • Adjusted1 and reported net income Reported Adjusted1 up 13% Y/Y ($MM) Q2 25 Y/Y Q/Q Q2 25 Y/Y Q/Q • Revenue up 10% Y/Y Wealth & Asset Management 1,433 11% (1)% 1,433 11% (1)% – Wealth and Asset Management Ins
Slide 18: BMO Capital Markets
BMO Capital Markets Good performance in Global Markets, I&CB lower reflecting market conditions • Adjusted1 net income down 7% Y/Y Reported Adjusted1 (reported down 6% Y/Y) ($MM) Q2 25 Y/Y Q/Q Q2 25 Y/Y Q/Q • Revenue2 up 7% Y/Y including the Global Markets 1,150 14 % (16)% 1,150 14 % (16)% impact of
Slide 19: Corporate Services
Corporate Services • Adjusted1 net loss of $155MM and Reported Adjusted1 reported net loss of $158MM for the ($MM) Q2 25 Y/Y Q/Q Q2 25 Y/Y Q/Q quarter, compared with an adjusted1 (120) 157 5 (120) 143 5 Revenue net loss of $244MM and reported net 2 loss of $328MM in the prior year Group teb offset (
Slide 20: Risk Review
Risk Review For the Quarter Ended April 30, 2025 Piyush Agrawal Chief Risk Officer Q2 25
Slide 21: Allowance and Provision on Performing Loans
Allowance and Provision on Performing Loans • The $289 million provision for credit losses on Allowance on Performing performing loans was largely driven by: Q2 25 Loans (APL) and PCL on APL to Q1 25 Q2 25 Foreign Q2 25 – Changes in the macro-economic outlook and Performing Loans (PCL) Performing AP
Slide 22: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) Provision for Credit Losses (PCL) • Q2’25 PCL ratio on impaired loans1 of 46 bps By Operating Group Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 down 4 bps Q/Q, lower across businesses ($MM) particularly in U.S. Commercial Personal & Business Banking 247 274 275 324 318 PCL on Imp
Slide 23: Gross Impaired Loans and Formations
Gross Impaired Loans and Formations Formations Gross Impaired Loans • Gross impaired loans (GIL) ratio3 at 99 bps, By Industry CA & CA & down 1 bp Q/Q ($MM, as at Q2 25) U.S. Total U.S. Total Other Other1 • Q2’25 formations lower Q/Q driven by Canadian and U.S. Commercial banking Total Consumer 450
Slide 24: Appendix
Appendix SSS SS EE
Slide 25: Loan Portfolio Overview
Loan Portfolio Overview Well-diversified by geography and industry Gross Loans & Acceptances Impaired PCL • Gross Loans & Acceptances down 2% Q/Q, ($B) ($MM) or flat Q/Q excluding the impact of By Industry Canada & Total Canada & Total foreign exchange movement U.S. U.S. (As at Q2 25) Other1 BMO Oth
Slide 26: Business & Government Portfolio Overview
Business & Government Portfolio Overview Gross Loans & Acceptances B&G Portfolio Industry Diversification Canada & Total % of By Industry U.S. Other BMO Total Utilities, 2% ($B, as at Q2 25) Construction, 2% Financing Products, 2% Total Consumer 242.6 56.6 299.2 44% Other¹, 4% Commercial Real Transp
Slide 27: Commercial Real Estate
Commercial Real Estate • Commercial Real Estate (CRE) portfolio at $76.9B represents 11% of CRE by Geography1 Total Gross Loans & Acceptances • Well-managed with consistent and conservative underwriting standards; Ontario 29% British Columbia 13% investment grade (44%), watchlist (7%) and impaired (
Slide 28: Canadian Consumer Portfolio Overview
Canadian Consumer Portfolio Overview • Total Canadian Consumer lending portfolio balances of Canadian Consumer Portfolio $242.6B in Q2’25, represent 36% of total loans – 89% of the portfolio is secured – 90+ day delinquency rate for the portfolio at 45 bps Residential Mortgages – Average FICO score
Slide 29: Canadian Residential Secured Lending Portfolio Overview
Canadian Residential Secured Lending Portfolio Overview • Total Canadian residential-secured lending portfolio at $211.5B, Residential-Secured Lending by Region ($211.5B) representing 31% of total loans $106.5 Amortizing HELOC – LTV1 on uninsured of 54% 18% $40.0 Revolving HELOC – 90+ day delinquenc
Slide 30: Canadian Mortgage Portfolio Profile
Canadian Mortgage Portfolio Profile • Renewal risk has decreased significantly due Mortgage Maturity Schedule to lower interest rates and proactive ($160.9Bn; 67% fixed rate, 33% variable rate) customer outreach – Less than 0.1% of mortgages are in 50.2 49.3 negative amortization1 11.8 – Over 30% of
Slide 31: Trading-Related Net Revenue and Value-at-Risk
Trading-Related Net Revenue and Value-at-Risk February 1,2025 to April 30, 2025 (pre-tax basis and in millions of Canadian dollars) 60 40 20 0 (20) (40) (60) Daily Revenue Total Trading VaR Risk Review • May 28, 2025 31
Slide 32: Advancing our Digital First strategy
Advancing our Digital First strategy Delivering on our Digital First agenda, Driving tangible customer Being recognized as an industry leader powered by AI, data and tech modernization and business value and innovator • Driving tangible customer and business Active Digital Users, Retail2 (000) • Ran
Slide 33: Canadian Personal & Commercial Banking – Balances
Canadian Personal & Commercial Banking – Balances Average Gross Loans & Acceptances ($B) Average Deposits ($B) 337.6 340.2 319.9 314.0 310.6 297.3 145.7 146.4 137.3 213.1 212.4 6.9 203.3 6.9 6.7 53.3 53.5 52.0 14.2 13.8 13.0 110.8 117.5 119.5 100.9 94.0 98.2 Q2'24 Q1'25 Q2'25 Q2'24 Q1'25 Q2'25 1 Com
Slide 34: U.S. Personal & Commercial Banking – Balances
U.S. Personal & Commercial Banking – Balances Amounts on this slide are in U.S. dollars1 Average Gross Loans & Acceptances (US$B) Average Deposits (US$B) 168.3 150.9 149.3 162.4 162.8 149.0 31.9 35.0 35.0 84.7 82.9 83.6 117.1 115.9 114.3 79.5 83.6 79.2 Q2'24 Q1'25 Q2'25 Q2'24 Q1'25 Q2'25 Commercial
Slide 35: Canadian and U.S. deposit trends
Canadian and U.S. deposit trends Canadian P&C and BMO Wealth Management deposits CDE$B, average balances 342 353 359 364 363 • In Canada, total deposits up 6% Y/Y and relatively 7% 7% 5% 5% unchanged Q/Q: 6% Commercial 21% 22% 22% 21% 20% – Growth in consumer chequing and savings accounts and commer
Slide 36: Asset Yields and Liabilities Costs
Asset Yields1 and Liabilities Costs2 Average Earning Assets ($B) and Yield1 (%) Average Liabilities ($B) and Costs2 (%) 5.40% 5.40% 3.72% 3.75% 5.27% 5.00% 3.40% 4.91% Yield on Total 3.10% 3.06% Cost on Total Average Liabilities Earning Assets 1,436 1,417 1,306 1,336 1,320 1,309 1,272 1,259 1,273 1,
Slide 37: Interest Rate Sensitivity
Interest Rate Sensitivity • Earnings benefit/exposure to an incremental +/- 100 bps rate • Long-term investment rates decreased Q/Q for USD and shock reflects a relatively neutral position remained relatively unchanged for CAD; forecast remains higher than historical levels and continue to support N
Slide 38: 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, prepa
Slide 39: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures (Canadian $ in millions, except as noted) Q2 25 Q1 25 Q4 24 YTD 2025 YTD 2024 Adjusting Items Reported Net interest income 5,097 5,398 4,515 10,495 9,236 Adjusted results in the current quarter, prior year and prior Results Non-interest revenue 3,582 3,868 3,459
Slide 40: Summary of Reported and Adjusted Results by Operating Group
Summary of Reported and Adjusted Results by Operating Group (Canadian $ in millions unless otherwise stated) Q2 25 Q1 25 Q4 24 Q3 24 Q2 24 YTD 2025 YTD 2024 Total Bank Reported Net Income 1,962 2,138 2,304 1,865 1,866 4,100 3,158 Acquisition and integration costs/ (recovery) (1) 7 27 19 26 6 83 Amor
Slide 41: Pre-Provision, Pre-Tax Earnings (PPPT) Reconciliation
Pre-Provision, Pre-Tax Earnings (PPPT) Reconciliation (Canadian $ in millions unless otherwise stated) Q2 25 Q1 25 Q4 24 Q3 24 Q2 24 YTD 2025 YTD 2024 Total Bank Reported Income before taxes 2,606 2,828 3,007 2,447 2,425 5,434 4,081 Total provision for (recovery of) credit losses 1,054 1,011 1,523 9
Slide 42: Revenue, Non-Interest Expense and Efficiency Ratio Reconciliation
Revenue, Non-Interest Expense and Efficiency Ratio Reconciliation (Canadian $ in millions unless otherwise stated) Q2 25 Q1 25 Q4 24 Q3 24 Q2 24 YTD 2025 YTD 2024 Total Bank Reported Revenue 8,679 9,266 8,957 8,192 7,974 17,945 15,646 Legal provision/reversal (including related interest expense and
Slide 43: Summary of Reported and Adjusted Results by Operating Group
Summary of Reported and Adjusted Results by Operating Group Reported Adjusted Reported Adjusted (Canadian $ in millions unless otherwise stated) (Canadian $ in millions unless otherwise stated) Q2 25 Q1 25 Q4 24 Q2 25 Q1 25 Q4 24 Q2 25 Q1 25 Q4 24 Q2 25 Q1 25 Q4 24 Total Bank Revenue 8,679 9,266 7,9
Slide 44: Investor Relations
BMO Financial Group Investor Relations Contact Information bmo.com/investorrelations E-mail: investor.relations@bmo.com