Bank Of Montreal · TSX:BMO
Bank Of Montreal — Q1 2026 Earnings Presentation
47 slides from Bank Of Montreal's earnings presentation, Feb 25, 2026
Slide 1: Investor Presentation Q1 26
BMO Financial Group Investor Presentation For the Quarter Ended January 31, 2026 February 25, 2026 Q1 26
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 Q1 26
Slide 4: A very strong start to F2026, delivering record PPPT
A very strong start to F2026, delivering record PPPT2 Record revenue in each operating segment driven by strong fee growth and margin expansion Q1 2026 EPS Net Income PPPT2 CET14 Adjusted1 $3.48 Adjusted1 $2.6B Adjusted1 $4.1B 13.1% Reported $3.39 Reported $2.5B Reported2 $4.1B ROE ROTCE3 Efficiency
Slide 5: Building momentum, executing on our commitments
Building momentum, executing on our commitments Improving ROE and growing earnings Total Bank ROE Focused execution +180 bps driving strong results +150 bps 13.1% 0.7% 11.8 % 11.3% 11.3% Severance • Building on peer leading1 ROE and EPS 12.4% Impact improvement in F2025 9.8% Adjusted2 • Continuing m
Slide 6: Record revenue across our diversified businesses
Record revenue across our diversified businesses Canadian P&C U.S. Banking Wealth Management Capital Markets +7% 3,258 +2% 3,043 +7% 2,072 2,105 +14% 2,212 217 1,500 2,073 952 201 864 1,320 128 772 134 710 1,156 1,134 2,179 2,306 1,372 1,186 1,440 1,363 715 754 Q1'25 Q1'26 Q1'25 Q1'26 Q1'25 Q1'26 Q1
Slide 7: Financial Results
Financial Results For the Quarter Ended January 31, 2026 Rahul Nalgirkar Chief Financial Officer Q1 26
Slide 8: Q1 F2026 - Financial Highlights
Q1 F2026 - Financial Highlights Strong performance with good PPPT1 growth and continued momentum on ROE Y/Y Highlights: Reported Adjusted2 ($MM) Q1 26 Y/Y Q/Q Q1 26 Y/Y Q/Q • Adjusted2 net income up 11% (reported up 16%) Revenue 9,824 6% 5% 9,840 6% 5% – Adjusted net income included severance costs
Slide 9: Balance Sheet
Balance Sheet Growth impacted by macro environment and optimization initiatives • Gross loans and acceptances down 2% Y/Y or flat excluding Average Gross Loans and Acceptances ($B) the impact of the weaker U.S. dollar 692.0 686.4 679.7 681.2 679.4 – Modest growth in Canadian residential mortgages an
Slide 10: Net Interest Margin
Net Interest Margin Strong NII growth driven by deposit margin expansion • NII ex. Global Markets up 5% Y/Y NII ($MM) and NIM ex. Global Markets and Insurance (%)1 12,200 11,700 – Higher net interest margin 11,200 2.33 3 2.21 2.30 10,700 10,200 2.13 2.17 – Higher NII in Corporate Services 9,700 9,20
Slide 11: Non-Interest Revenue
Non-Interest Revenue Strong growth in wealth management, trading and advisory fees Adjusted1 Non-Interest Revenue by Category ($MM) Y/Y Highlights: Reported 3,868 3,582 3,492 3,845 4,181 • Adjusted1 non-interest revenue up 9% 4,197 (reported up 8%) 3,868 3,845 3,582 3,492 866 – Trading non-interest
Slide 12: Non-Interest Expense
Non-Interest Expense Y/Y growth primarily driven by higher employee costs, including severance Y/Y Change in Non-Interest Expense ($MM) Y/Y Highlights: • Adjusted1 expenses up 9% (reported up 6%) 9% Adjusted1 6% Reported 4% Adjusted1 – Higher performance-based compensation 1% Reported contributed 3%
Slide 13: Capital Position
Capital Position Continued strong internal capital generation Q/Q Highlights: Common Equity Tier 1 (CET1) Ratio1 +28 bps • Q1’26 CET1 ratio1 of 13.1%, down from Q4’25 reflecting: – Internal capital generation 13.3 More than offset by -30 bps +8 bps 13.1 – Higher source currency RWA -25 bps -4 bps –
Slide 14: Canadian Personal & Commercial Banking
Canadian Personal & Commercial Banking Good revenue growth with strong margin expansion and growth in operating deposits Y/Y Highlights: Reported Adjusted1 • Adjusted1 and reported net income up 8% ($MM) Q1 26 Y/Y Q/Q Q1 26 Y/Y Q/Q • Adjusted1 and reported PPPT2 up 4% Net interest income 2,523 6% 2%
Slide 15: U.S. Banking
U.S. Banking Good margin expansion and improved credit performance Y/Y Highlights: Reported Adjusted1 (US$MM) Q1 26 Y/Y Q/Q Q1 26 Y/Y Q/Q Amounts that follow are in U.S. dollars: 3 Net interest income (teb) 1,648 2% 2% 1,648 2% 2% 1 • Adjusted net income up 18% (reported up 21%) Non-interest revenue
Slide 16: Wealth Management
Wealth Management Good performance from growth in client assets and market appreciation Y/Y Highlights: Reported Adjusted1 • Adjusted1 net income up 16% (reported up 7%) ($MM) Q1 26 Y/Y Q/Q Q1 26 Y/Y Q/Q – Results include the acquisition of Burgundy Wealth & Asset Management 1,372 16% 5% 1,388 17% 6
Slide 17: Capital Markets
Capital Markets Strong PPPT2 and net income performance driven by strong trading activity and advisory fees Y/Y Highlights: Reported Adjusted1 ($MM) Q1 26 Y/Y Q/Q Q1 26 Y/Y Q/Q • Adjusted1 and reported net income up 11% Global Markets 1,440 6% 39% 1,440 6% 39% • Revenue3 up 7% including the impact o
Slide 18: Corporate Services
Corporate Services • Adjusted1 net loss of $242MM for the quarter, Reported Adjusted1 including severance ($67MM pre-tax), compared ($MM) Q1 26 Q4 25 Q1 25 Q1 26 Q4 25 Q1 25 with net loss of $219MM in the prior year 2 Revenue (teb) (42) 103 (134) (42) 103 (134) • Reported net loss of $210MM for the
Slide 19: Risk Review
Risk Review For the Quarter Ended January 31, 2026 Piyush Agrawal Chief Risk Officer Q1 26
Slide 20: Provision for Credit Losses
Provision for Credit Losses (PCL) Stable provisions Q/Q Provision for Credit Losses (PCL) • Q1’26 PCL ratio on impaired loans1 of 44 bps, flat Q/Q By Operating Segment Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 ($MM) Personal & Business Banking 324 318 347 356 354 PCL on Impaired Loans ($MM) Commercial Banking 1
Slide 21: Allowance and Provision on Performing Loans
Allowance and Provision on Performing Loans Strong coverage on performing loans • $7 million provision for credit losses on performing Allowance on Performing loans Q1 26 Loans (APL) and PCL on APL to Q4 25 Q1 26 Foreign Q1 26 • Strong coverage on performing loans at 69 bps2 Performing Loans (PCL) P
Slide 22: Gross Impaired Loans and Formations
Gross Impaired Loans and Formations Continued moderation in Business and Government formations Formations Gross Impaired Loans • Gross impaired loans (GIL) ratio3 at 102 bps, By Industry ($MM, as at Q1 26) CA & Total CA & Total down 2 bps Q/Q driven by decrease in U.S. U.S. business and government f
Slide 23: Appendix
Appendix
Slide 24: Loan Portfolio Overview
Loan Portfolio Overview Gross Loans & Acceptances • Loan portfolio is well-diversified by By Industry product, industry and geography ($B, As at Q1 26) Canada & U.S. Total BMO % of Total Other1 Residential Mortgages 162.1 32.0 194.1 28% Consumer Instalment and Other Personal 69.8 22.0 91.8 14% Credi
Slide 25: Business and Government Portfolio Overview
Business and Government Portfolio Overview Gross Loans & Acceptances B&G Portfolio Industry Diversification Canada & Total % of By Industry U.S. Other BMO Total Utilities, 2% ($B, as at Q1 26) Construction, 2% Oil & Gas, 1% Financing Products, 3% Total Consumer 242.9 55.2 298.1 44% Transportation, 3
Slide 26: Commercial Real Estate
Commercial Real Estate CRE by Geography1 • Commercial Real Estate (CRE) portfolio at $77B represents 11% of total gross loans & acceptances British Columbia 13% Ontario 27% • Well-managed with consistent and conservative underwriting standards; investment grade (45%), watchlist (4%) and impaired (1%
Slide 27: Canadian Consumer Portfolio Overview
Canadian Consumer Portfolio Overview • Total Canadian Consumer lending portfolio balances of $242.9B Canadian Consumer Portfolio in Q1’26, represent 36% of total gross loans & acceptances – 90% of the portfolio is secured – 90+ day delinquency rate for the portfolio at 54 bps Residential Mortgages –
Slide 28: Canadian Residential Secured Lending Portfolio Overview
Canadian Residential Secured Lending Portfolio Overview • Total Canadian residential-secured lending portfolio at $214.7B, representing 32% of total gross loans & acceptances Residential-Secured Lending by Region ($214.7B) $110.2 — LTV1 on uninsured of 57% Amortizing HELOC — 90+ day delinquency rate
Slide 29: Canadian Mortgage Portfolio Profile
Canadian Mortgage Portfolio Profile Mortgage Maturity Schedule • Renewal risk decreased significantly due to lower ($162.1B; 61% fixed rate, 39% variable rate) interest rates and proactive customer outreach ― Over 30% of mortgages renewed in Q1’26 45.5 experienced a payment decrease 34.6 34.4 ― Cust
Slide 30: Trading-Related Net Revenue and Value-at-Risk
Trading-Related Net Revenue and Value-at-Risk November 1, 2025 to January 31, 2026 (pre-tax basis and in millions of Canadian dollars) 50 40 30 20 10 0 (10) (20) (30) (40) Daily Revenue Total Trading VaR Q1 2026 Financial Presentation 30
Slide 31: Advancing our Digital First strategy
Advancing our Digital First strategy Delivering on our Digital First agenda, powered Driving tangible customer Recognized as an industry leader by AI, data and tech modernization and business value and innovator • Driving tangible customer and business value Active Digital Users, Retail2 (000) throu
Slide 32: Canadian Personal & Commercial Banking – Balances
Canadian Personal & Commercial Banking – Balances Average Gross Loans & Acceptances ($B) Average Deposits ($B) 337.6 340.2 342.1 342.7 343.1 314.0 310.6 310.6 312.3 311.4 145.7 146.4 147.2 147.9 148.1 213.1 212.4 211.3 208.4 206.1 6.9 6.9 7.0 7.1 7.3 53.3 53.5 53.9 54.3 54.5 14.2 13.8 13.8 13.4 13.3
Slide 33: U.S. Banking – Balances
U.S. Banking – Balances Amounts on this slide are in U.S. dollars1 Average Gross Loans (US$B) Average Deposits (US$B) 180.2 174.5 172.8 170.3 170.9 162.3 161.1 160.6 11.9 157.7 156.6 11.8 11.4 11.3 11.3 11.4 11.8 12.1 12.3 12.5 35.0 35.0 35.3 35.6 35.2 84.7 83.6 81.2 79.4 77.7 115.9 114.3 113.2 109.
Slide 34: Asset Yields and Liabilities Costs
Asset Yields1 and Liabilities Costs2 Average Earning Assets ($B) and Yield1 (%) Average Liabilities ($B) and Costs2 (%) 5.00% 4.91% 4.85% 4.72% 4.51% 3.10% 3.06% 3.01% Yield on Total 2.89% 2.65% Cost on Total Average Liabilities Earning Assets 1,436 1,417 1,425 1,320 1,309 1,304 1,334 1,349 1,376 1,
Slide 35: Interest Rate Sensitivity
Interest Rate Sensitivity • Earnings benefit/exposure to an incremental +/- 100 bps • Long-term investment rates increased Q/Q; forecast remains rate shock reflects a relatively neutral position higher than historical levels and continues to support NIM • BMO’s strategy emphasizes margin stability;
Slide 36: 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 37: End Notes
End Notes Page Endnote Page 5 1 Canadian peer group: The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada and The Toronto-Dominion Bank Page 6 All results are presented on a reported basis 1 Revenue presented on a taxable equivalent basis (teb) b
Slide 38: End Notes
End Notes Page Endnote Page 25 1 Other includes Mining, Government, Communications, Forest Products and Other Page 26 1 Based on the location of the collateral or the borrower for REITs 2 Other U.S. and Other Canada includes geographies that are each less than 2% of the total CRE Gross Loans & Accep
Slide 39: Glossary
Glossary Term Definition Adjusted Earnings and Adjusted earnings and measures are non-GAAP and exclude certain specified items from revenue, non-interest expense, provision for credit losses and income Measures taxes that may not reflect ongoing business performance. Management considers both report
Slide 40: Glossary
Glossary Term Definition Pre-Provision, Pre-Tax Pre-Provision, Pre-Tax Earnings (PPPT) is a non-GAAP measure, calculated as income before provision for income taxes and provision for (recovery of) credit Earnings (PPPT) losses. We use PPPT on both a reported and an adjusted basis to assess our abili
Slide 41: 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 o
Slide 42: Reported and Adjusted Results Reconciliation
Non-GAAP and Other Financial Measures Reported and Adjusted Results Reconciliation (Canadian $ in millions, except as noted) Q1 26 Q4 25 Q1 25 Adjusting Items Reported Net interest income 5,643 5,496 5,398 Adjusted results in the current quarter and prior periods Results Non-interest revenue 4,181 3
Slide 43: Reported and Adjusted Results Reconciliation by Operating Segment
Non-GAAP and Other Financial Measures Reported and Adjusted Results Reconciliation by Operating Segment (Canadian $ in millions unless otherwise stated) Q1 26 Q4 25 Q3 25 Q2 25 Q1 25 Total Bank Reported Net Income 2,489 2,295 2,330 1,962 2,138 Acquisition and integration costs / (reversals) 7 3 4 (1
Slide 44: PPPT Reconciliation
Non-GAAP and Other Financial Measures Pre-Provision, Pre-Tax Earnings (PPPT) Reconciliation (Canadian $ in millions unless otherwise stated) Q1 26 Q4 25 Q3 25 Q2 25 Q1 25 Total Bank Reported Income before taxes 3,325 3,030 3,086 2,606 2,828 Total provision for (recovery of) credit losses 746 755 797
Slide 45: Non-Interest Expense and Efficiency Ratio Reconciliation
Non-GAAP and Other Financial Measures Non-Interest Expense and Efficiency Ratio Reconciliation (Canadian $ in millions unless otherwise stated) Q1 26 Q4 25 Q3 25 Q2 25 Q1 25 Total Bank Reported Revenue 9,824 9,341 8,988 8,679 9,266 Change in fair value of contingent consideration (16) — — — — Adjust
Slide 46: Reported and Adjusted Results Summary by Operating Segment
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) Q1 26 Q4 25 Q1 25 Q1 26 Q4 25 Q1 25 Q1 26 Q4 25 Q1 25 Q1 26 Q4 25 Q1
Slide 47: Investor Relations
BMO Financial Group Investor Relations Contact Information bmo.com/investorrelations E-mail: investor.relations@bmo.com