Bank Of Montreal · TSX:BMO
Bank Of Montreal — Q4 2025 Earnings Presentation
51 slides from Bank Of Montreal's earnings presentation, Dec 4, 2025
Slide 1: Investor Presentation Q4 25
BMO Financial Group Investor Presentation For the Quarter Ended October 31, 2025 December 4, 2025 Q4 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 Q4 25
Slide 4: Delivered on F2025 Commitments
Delivered on F2025 Commitments Disciplined execution positions BMO for continued profitable growth EPS Return on Equity Commitment Delivery +26% $12.16 +150 bps $9.68 11.3% ✓ 9.8% • Profitable Growth: Strong EPS Adjusted1 Adjusted1 and improving Return on Equity F2024 F2025 F2024 F2025 Reported $9.5
Slide 5: Good momentum across our diversified businesses
Good momentum across our diversified businesses Wealth Capital Canadian Personal & U.S. Management Markets Commercial Banking Banking +7% 12.3 +3% +14% 11.4 +15% 7.4 8.0 8.2 5.3 6.5 3.5 0.8 0.8 3.2 4.6 0.4 0.5 2.8 2.6 4.4 4.5 4.8 8.2 8.8 4.2 4.6 3.9 2.8 2.9 F2024 F2025 F2024 F2025 F2024 F2025 F2024
Slide 6: U.S. Banking Performance
U.S. Banking Performance Executing on final stages of optimization and positioning for future growth Strategic • Balance Sheet Optimization • Unified U.S. Banking business actions… • Strengthening Risk / Return • Reinvestments in Technology and Talent Deposit Mix Lower Fee Improved Optimization RWA
Slide 7: Consistent strategic priorities and financial objectives
Consistent strategic priorities and financial objectives Committed to delivering long-term shareholder value Medium Term Financial Objectives1 Continuing Progress on Rebuilding ROE… Strong 15%+ EPS Growth 7% to 10% per year 11.3% Strategic Fit 9.8% Return on Equity 15% or more Adjusted2 Return on Ta
Slide 8: Financial Results
Financial Results For the Quarter Ended October 31, 2025 Tayfun Tuzun Chief Financial Officer Q4 25
Slide 9: Q4 F2025 - Financial Highlights
Q4 F2025 - Financial Highlights Continued momentum with strong PPPT1 growth, positive operating leverage and improved ROE Y/Y Highlights: Reported Adjusted2 ($MM) Q4 25 Y/Y Q/Q Q4 25 Y/Y Q/Q • Adjusted2 net income up 63% (reported flat) Revenue 9,341 4% 4% 9,341 12% 4% – Q4’25 adjusted2 net income e
Slide 10: Balance Sheet
Balance Sheet Growth impacted by macro environment and optimization initiatives • Gross loans and acceptances up 1% Y/Y; flat Q/Q Average Gross Loans and Acceptances ($B) – Modest growth in Canadian residential mortgages and 671.3 692.0 686.4 679.7 681.2 commercial loans 82.4 86.6 82.2 82.7 85.6 64.
Slide 11: Net Interest Margin
Net Interest Margin Strong NII growth driven by deposit margin expansion • Adjusted2 NII ex. trading up 10% Y/Y NII ($MM) and NIM ex. trading and insurance (%)1 2.13 2.06 – Higher net interest margin 7,700 1.97 1.99 2. 1 7,200 1.93 2.06 – Higher NII in Corporate Services 1.93 1.97 1.99 6,700 1.91 6,
Slide 12: Non-Interest Revenue
Non-Interest Revenue Strong growth in wealth management and underwriting fees Y/Y Highlights: Non-Interest Revenue by Category ($MM) 3,868 3,845 • Non-interest revenue up 9%; up 17% excluding 4,000 3,519 3,582 3,492 380 455 trading 3,500 352 415 453 802 557 – Trading non-interest revenue down 20% (o
Slide 13: Non-Interest Expense
Non-Interest Expense Good expense management and positive operating leverage Y/Y Highlights: Q4’25 Non-Interest Expense ($MM) • Adjusted1 expenses up 9% (reported up 26%) 9% Adjusted1 26% Reported – Higher performance-based compensation and stronger 5% Adjusted1 U.S. dollar contributed 4% to the inc
Slide 14: Capital Position
Capital Position Continued strong internal capital generation Q/Q Highlights: Common Equity Tier 1 (CET1) Ratio1 +25 bps • Q4’25 CET1 ratio1 of 13.3%, down from Q3’25 reflecting: 13.5% – Internal capital generation +8 bps 13.3% More than offset by -33 bps – 8 million common shares repurchased -16 bp
Slide 15: Canadian Personal & Commercial Banking
Canadian Personal & Commercial Banking Good PPPT2 performance with positive operating leverage Y/Y Highlights: Reported Adjusted1 ($MM) Q4 25 Y/Y Q/Q Q4 25 Y/Y Q/Q • Adjusted1 net income up 5% (reported flat) Net interest income 2,464 7% -% 2,464 7% -% • Adjusted1 PPPT2 up 7% (reported up 4%) Non-in
Slide 16: U.S. Banking
U.S. Banking Good PPPT2 growth, positive operating leverage, lower PCL and improving ROE Y/Y Highlights: Reported Adjusted1 (US$MM) Q4 25 Y/Y Q/Q Q4 25 Y/Y Q/Q Amounts that follow are in U.S. dollars: Net interest income (teb)3 1,609 2% (1)% 1,609 2% (1)% 1 • Adjusted net income of $627MM up from $2
Slide 17: Wealth Management
Wealth Management Continued strong performance from growth in client assets and market appreciation Y/Y Highlights: Reported Adjusted1 • Adjusted1 net income up 28% (reported up 27%) ($MM) Q4 25 Y/Y Q/Q Q4 25 Y/Y Q/Q Wealth & Asset Management 1,290 14% 8% 1,290 14% 8% • Revenue up 16% Insurance 129
Slide 18: Capital Markets
Capital Markets Strong performance driven by underwriting, equities trading and lower PCL Y/Y Highlights: Reported Adjusted1 ($MM) Q4 25 Y/Y Q/Q Q4 25 Y/Y Q/Q • Adjusted1 net income of $532MM up from $270MM (reported of $521MM up from $251MM) Global Markets 1,035 10% (2)% 1,035 10% (2)% • Revenue2 u
Slide 19: Corporate Services
Corporate Services • Adjusted1 net loss of $73MM for the quarter, Reported Adjusted1 compared with net loss of $147MM in the prior ($MM) Q4 25 Q3 25 Q4 24 Q4 25 Q3 25 Q4 24 year with higher revenue partially offset by Revenue (teb) 2 103 (59) 469 103 (59) (120) higher expenses Expenses 366 118 (502)
Slide 20: Risk Review
Risk Review For the Quarter Ended October 31, 2025 Piyush Agrawal Chief Risk Officer Q4 25
Slide 21: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) Total PCL ratio decreased 3 bps Q/Q Provision for Credit Losses (PCL) • F2025 PCL ratio on impaired loans1 46 bps vs 47 bps By Operating Segment Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 in the prior year ($MM) • Q4’25 PCL ratio on impaired loans1 of 44 bps, down Personal & Bus
Slide 22: Allowance and Provision on Performing Loans
Allowance and Provision on Performing Loans Robust coverage on performing loans • $5 million provision for credit losses on performing Allowance on Performing loans Q4 25 Loans (APL) and PCL on APL to Q3 25 Q4 25 Foreign Q4 25 • Robust coverage on performing loans at 70 bps2 Performing Loans (PCL) P
Slide 23: Gross Impaired Loans and Formations
Gross Impaired Loans and Formations Stable Business and Government formations Formations Gross Impaired Loans • Gross impaired loans (GIL) ratio3 at 104 bps, up 2 By Industry bps Q/Q driven by increases in consumer GIL ($MM, as at Q4 25) CA & Total CA & Total U.S. U.S. – Primarily due to higher form
Slide 24: Appendix
Appendix SSS SS EE
Slide 25: Loan Portfolio Overview
Loan Portfolio Overview Gross Loans & Acceptances ($B) • Loan portfolio is well-diversified by By Industry Canada & Total product, industry and geography U.S. % of Total (As at Q4 25) Other1 BMO Residential Mortgages 162.3 33.7 196.0 29% Consumer Instalment and Other Personal 69.9 22.9 92.7 13% Cred
Slide 26: Business and Government Portfolio Overview
Business and Government Portfolio Overview Gross Loans & Acceptances B&G Portfolio Industry Diversification Canada & Total % of By Industry U.S. Other BMO Total Utilities, 2% ($B, as at Q4 25) Construction, 2% Financing Products, 3% Total Consumer 243.7 57.7 301.4 44% Transportation, 3% Commercial R
Slide 27: Commercial Real Estate
Commercial Real Estate CRE by Geography1 • Commercial Real Estate (CRE) portfolio at $77.0B represents 11% of total gross loans & acceptances British Columbia 14% Ontario 27% • Well-managed with consistent and conservative underwriting standards; investment grade (45%), watchlist (5%) and impaired (
Slide 28: Non-Bank Financial Institutions Portfolio (NBFI)
Non-Bank Financial Institutions Portfolio (NBFI) Gross Loans & Acceptances NBFI Composition NBFI $69.4B 10% Equity Short-tenor, primarily uncommitted financing, generally secured with 50% Subscription pledge of uncalled capital commitments from investors Lending Investment & Diversified range of fin
Slide 29: Canadian Consumer Portfolio Overview
Canadian Consumer Portfolio Overview • Total Canadian Consumer lending portfolio balances of Canadian Consumer Portfolio $243.7B in Q4’25, represent 36% of total gross loans & acceptances – 89% of the portfolio is secured Residential Mortgages – 90+ day delinquency rate for the portfolio at 50 bps $
Slide 30: Canadian Residential Secured Lending Portfolio Overview
Canadian Residential Secured Lending Portfolio Overview Residential-Secured Lending by Region ($214.4B) • Total Canadian residential-secured lending portfolio at Amortizing HELOC $214.4B, representing 31% of total gross loans & acceptances $109.2 Revolving HELOC – LTV1 on uninsured of 55% Uninsured
Slide 31: Canadian Mortgage Portfolio Profile
Canadian Mortgage Portfolio Profile Mortgage Maturity Schedule • Renewal risk has decreased significantly due to ($162.3B; 64% fixed rate, 36% variable rate) lower interest rates and proactive customer outreach 46.5 46.7 – Approximately 30% of mortgages renewed in 11.0 37.1 Q4’25 experienced a payme
Slide 32: Trading-Related Net Revenue and Value-at-Risk
Trading-Related Net Revenue and Value-at-Risk August 1, 2025 to October 31, 2025 (pre-tax basis and in millions of Canadian dollars) 60 40 20 0 (20) (40) (60) Daily Revenue Total Trading VaR Risk Review • December 4, 2025 32
Slide 33: Advancing our Digital-First, AI powered strategy
Advancing our Digital-First, AI powered strategy Delivering on our Digital First agenda, Driving tangible customer Recognized as an industry leader powered by AI, data and tech modernization and business value and innovator • Driving tangible customer and business Active Digital Users, Retail2 (000)
Slide 34: F2025 - Financial Highlights
F2025 - Financial Highlights Y/Y Highlights: Reported Adjusted2 ($MM) F2025 Y/Y F2025 Y/Y • Adjusted2 net income up 24% (reported up 19%) Revenue 36,274 11% 36,274 12% – F2025 adjusted2 net income excluded $352MM amortization of acquisition-related intangible assets and $102MM goodwill write- Expens
Slide 35: Canadian Personal & Commercial Banking – Balances
Canadian Personal & Commercial Banking – Balances Average Gross Loans & Acceptances ($B) Average Deposits ($B) 337.6 340.2 342.1 342.7 333.0 314.0 312.5 310.6 310.6 312.3 6.9 6.9 7.0 13.4 7.1 7.1 14.2 13.8 13.8 13.9 53.3 53.5 53.9 54.3 53.1 211.9 213.1 212.4 211.3 208.4 143.9 145.7 146.4 147.2 147.9
Slide 36: U.S. Banking – Balances
U.S. Banking – Balances Amounts on this page are in U.S. dollars1 Average Gross Loans & Acceptances (US$B) Average Deposits (US$B) 178.8 180.2 174.5 172.8 170.3 161.2 162.3 161.1 160.6 157.7 11.6 11.9 11.7 11.4 11.3 10.9 11.4 11.8 12.1 12.3 34.5 35.0 35.0 35.3 35.6 84.4 84.7 83.6 81.2 79.4 115.8 115
Slide 37: Asset Yields and Liabilities Costs
Asset Yields1 and Liabilities Costs2 Average Earning Assets ($B) and Yield1 (%) Average Liabilities ($B) and Costs2 (%) 5.27% 5.00% 4.91% 4.85% 4.72% 3.40% Yield on Total 3.10% 3.06% 3.01% 2.89% Cost on Total Average Liabilities Earning Assets 1,436 1,417 1,376 1,320 1,309 1,304 1,336 1,349 1,273 1,
Slide 38: Interest Rate Sensitivity
Interest Rate Sensitivity • Earnings benefit/exposure to an incremental +/- 100 bps rate • Long-term investment rates decreased Q/Q for CAD and shock reflects a relatively neutral position remained relatively unchanged for USD; forecast remains higher than historical levels and continues to support
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 the Act as a catalyst for progress in valuable financial advice transition to a net-zero world the communities we serve • Named to the 2026 Forbes list o
Slide 40: End Notes
End Notes Page Endnote Page 5 All results are presented on a reported basis Good momentum across our 2 Revenue presented on a taxable equivalent basis (teb) basis. Teb adjustments in U.S. Banking (F2025 US$33MM; F2024 US$36MM) and Capital Markets diversified businesses (F2025 $6MM; F2024 $22MM) are
Slide 41: End Notes
End Notes Page Endnote Page 22 1 Q3’25 and Q4’25 included Allowance on Performing Loans (APL) on other assets of $21MM and $21MM respectively, and excluded APL on securities of Allowance and Provision on $8MM and $10MM respectively Performing Loans 2 Includes U.S. Private Wealth balances as applicab
Slide 42: End Notes
End Notes Page Endnote Page 35 1 Commercial lending excludes commercial and small business cards. Commercial and small business cards balances represented 13% of total credit card Canadian Personal & portfolio in Q4’25, Q3’25 and Q4’24 Commercial Banking – Balances Page 36 1 Average FX rates (CDN/US
Slide 43: Glossary
Glossary Term Definition Adjusted Earnings and Measures Adjusted earnings and measures are Non-GAAP and exclude certain specified items from revenue, non-interest expense, provision for credit losses and income taxes that may not reflect ongoing business performance. Management considers both report
Slide 44: Glossary
Glossary Term Definition Provision for Credit Losses (PCL) Provision for Credit Losses (PCL) Ratio is calculated as the annualized total provision for credit losses as a percentage of average net loans and acceptances Ratio Provision for Credit Losses (PCL) Provision for Credit Losses (PCL) Impaired
Slide 45: 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 46: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Reported and Adjusted Results Reconciliation (Canadian $ in millions, except as noted) Q4 25 Q3 25 Q4 24 F2025 F2024 Adjusting Items Reported Net interest income 5,496 5,496 5,438 21,487 19,468 Adjusted results in the current quarter and prior periods excluded t
Slide 47: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Reported and Adjusted Results Reconciliation by Operating Segment (Canadian $ in millions unless otherwise stated) Q4 25 Q3 25 Q2 25 Q1 25 Q4 24 F2025 F2024 Total Bank Reported Net Income 2,295 2,330 1,962 2,138 2,304 8,725 7,327 Acquisition and integration cost
Slide 48: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Pre-Provision, Pre-Tax Earnings (PPPT) Reconciliation (Canadian $ in millions unless otherwise stated) Q4 25 Q3 25 Q2 25 Q1 25 Q4 24 F2025 F2024 Total Bank Reported Income before taxes 3,030 3,086 2,606 2,828 3,007 11,550 9,535 Total provision for (recovery of)
Slide 49: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Non-Interest Expense and Efficiency Ratio Reconciliation (Canadian $ in millions unless otherwise stated) Q4 25 Q3 25 Q2 25 Q1 25 Q4 24 F2025 F2024 Total Bank Reported Revenue 9,341 8,988 8,679 9,266 8,957 36,274 32,795 Legal provision/reversal (including relate
Slide 50: Non-GAAP and Other Financial Measures
Non-GAAP and Other Financial Measures Reported and Adjusted Results Summary by Operating Segment Reported Adjusted Reported Adjusted (Canadian $ in millions unless otherwise stated) (Canadian $ in millions unless otherwise stated) Q4 25 Q3 25 Q4 24 Q4 25 Q3 25 Q4 24 Q4 25 Q3 25 Q4 24 Q4 25 Q3 25 Q4
Slide 51: Investor Relations
BMO Financial Group Investor Relations Contact Information bmo.com/investorrelations E-mail: investor.relations@bmo.com