Bank Of Montreal · TSX:BMO
Bank Of Montreal — Q3 2025 Earnings Presentation
46 slides from Bank Of Montreal's earnings presentation, Aug 26, 2025
Slide 1: Investor Presentation Q3 25
BMO Financial Group Investor Presentation For the Quarter Ended July 31, 2025 August 26, 2025 Q3 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 Q3 25
Slide 4: Strong operating momentum driving Return on Equity expansion
Strong operating momentum driving Return on Equity expansion Q3’25 EPS YTD’25 EPS +14% Y/Y +22% Y/Y $8.89 $7.78 $3.23 Adjusted1 $2.64 Strong EPS and PPPT2 growth Q3'24 Q3'25 YTD'24 YTD'25 • Revenue up 12% YTD, broad-based growth Reported $2.48 $3.14 +26% $8.8B $11.4B +29% across businesses • Six con
Slide 5: Strong performance across our diversified businesses
Strong performance across our diversified businesses Canadian Personal & Commercial Banking U.S. Personal & Commercial Banking Revenue ($B) • 8% PPPT1 growth YTD Revenue (teb2, US$B) • 6% PPPT1 growth YTD 7% 2% 8.5 9.1 • Consistent top-tier customer 5.4 5.5 • Continued momentum on 2.4 2.5 acquisitio
Slide 6: Advancing our Digital First strategy
Advancing our Digital First strategy Delivering on our Digital First agenda, Driving tangible customer Recognized as an industry leader powered by AI, data and tech modernization and business value and innovator • Driving tangible customer and business Active Digital Users, Retail2 (000) • Ranked #1
Slide 7: Financial Results
Financial Results For the Quarter Ended July 31, 2025 Tayfun Tuzun Chief Financial Officer Q3 25
Slide 8: Q3 F2025 - Financial Highlights
Q3 F2025 - Financial Highlights Continued momentum with strong PPPT1 growth and positive operating leverage Y/Y Highlights: Reported Adjusted2 • Adjusted2 net income up 21% (reported up 25%) ($MM) Q3 25 Y/Y Q/Q Q3 25 Y/Y Q/Q – Q3’25 adjusted2 net income excluded $69MM Revenue 8,988 10% 4% 8,988 10%
Slide 9: Return on Equity
Return on Equity Good momentum on ROE improvement across each key initiative Total Bank ROE Executing against key initiatives 15%+ • U.S. P&C Improvement 12.0% 10.6% 11.1% • Good operating performance (YTD PPPT2 up 6%; positive 9.8% operating leverage) • PCL improvement • Disciplined balance sheet o
Slide 10: Balance Sheet
Balance Sheet Growth impacted by macro environment and optimization initiatives • Gross loans and acceptances up 2% Y/Y Average Gross Loans and Acceptances ($B) – Good but moderating growth in Canadian residential 669.3 671.3 692.0 686.4 679.7 mortgages and commercial loans 84.6 82.4 86.6 82.2 82.7
Slide 11: Net Interest Margin
Net Interest Margin Five consecutive quarters of NIM1 expansion • Adjusted2 NII ex. trading and insurance up 9% Y/Y NII ($MM) and NIM ex. trading and insurance (%)1 – Higher net interest margin 1.97 1.99 1.93 7,700 2. 1 7,200 1.83 2.13 – Balance growth in Canadian P&C and BMO Wealth 6,700 1.91 1.93
Slide 12: Non-Interest Revenue
Non-Interest Revenue Higher Y/Y with strong growth in wealth management and advisory fees Non-Interest Revenue by Category ($MM) Y/Y Highlights: 3,868 • Non-interest revenue up 3%; up 11% excluding 3,398 3,519 3,582 3,492 802 trading 696 819 406 622 – Trading revenue down 35% (offset in trading NII)
Slide 13: Non-Interest Expense
Non-Interest Expense Continued expense management and positive operating leverage Y/Y Highlights: Y/Y Change in Non-Interest Expense ($MM) • Adjusted1 expenses up 7% (reported up 5%) 7% Adjusted1 5% Reported – Driven by higher employee-related costs, with 4% Adjusted1 performance-based compensation
Slide 14: Capital Position
Capital Position Strong Q3’25 CET1 Ratio1 of 13.5% Q/Q Highlights: Common Equity Tier 1 (CET1) Ratio1 +26 bps • Q3’25 CET1 ratio1 of 13.5%, unchanged from Q2’25 primarily reflecting: 13.5% – Internal capital generation -21 bps +4 bps 13.5% Offset by -13 bps – 6 million common shares repurchased – Hi
Slide 15: Canadian Personal & Commercial Banking
Canadian Personal & Commercial Banking Good PPPT2 performance with balance growth and higher margins, offset by higher PCL Y/Y Highlights: Reported Adjusted1 • Adjusted1 and reported net income down 5% ($MM) Q3 25 Y/Y Q/Q Q3 25 Y/Y Q/Q • Adjusted1 PPPT2 up 6% (reported up 7%) Net interest income 2,4
Slide 16: U.S. Personal & Commercial Banking
U.S. Personal & Commercial Banking Strong PPPT2 growth with positive operating leverage and lower PCL Y/Y Highlights: Reported Adjusted1 (US$MM) Q3 25 Y/Y Q/Q Q3 25 Y/Y Q/Q Amounts that follow are in U.S. dollars: Net interest income (teb)3 1,533 2% 3% 1,533 2% 3% • Adjusted1 net income up 42% (repo
Slide 17: BMO Wealth Management
BMO Wealth Management Strong performance from higher markets and good growth in client assets and balances Y/Y Highlights: Reported Adjusted1 • Adjusted1 net income up 21% (reported up 20%) ($MM) Q3 25 Y/Y Q/Q Q3 25 Y/Y Q/Q • Revenue up 13% Wealth & Asset Management 1,487 11% 4% 1,487 11% 4% – Wealt
Slide 18: BMO Capital Markets
BMO Capital Markets Solid PPPT3 earnings with strong underwriting & advisory fee revenue Y/Y Highlights: Reported Adjusted1 • Adjusted1 net income up 12% (reported up 13%) ($MM) Q3 25 Y/Y Q/Q Q3 25 Y/Y Q/Q • Revenue2 up 7%: Global Markets 1,053 5% (8)% 1,053 5% (8)% – Global Markets up 5% primarily
Slide 19: Corporate Services
Corporate Services • Adjusted1 net loss of $123MM for the quarter, Reported Adjusted1 compared with an adjusted1 net loss of $236MM ($MM) Q3 25 Q2 25 Q3 24 Q3 25 Q2 25 Q3 24 in the prior year 2 Total Revenue (teb) (59) (130) (274) (59) (130) (260) • Reported net loss of $120MM for the quarter, compa
Slide 20: Risk Review
Risk Review For the Quarter Ended July 31, 2025 Piyush Agrawal Chief Risk Officer Q3 25
Slide 21: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) Provision for Credit Losses (PCL) By Operating Group Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 • Q3’25 PCL ratio on impaired loans1 of 45 bps, down ($MM) 1bp Q/Q Personal & Business Banking 274 275 324 318 347 PCL on Impaired Loans ($MM) Commercial Banking 79 165 167 158 142 66
Slide 22: Allowance and Provision on Performing Loans
Allowance and Provision on Performing Loans Allowance on Performing Q3 25 • $24 million provision for credit losses on Loans (APL) and PCL on APL to Q2 25 Q3 25 Foreign Q3 25 performing loans Performing Loans (PCL) Performing APL1 PCL exchange APL 1 By Operating Group Loans2 (bps) • Good coverage on
Slide 23: Gross Impaired Loans and Formations
Gross Impaired Loans and Formations Formations Gross Impaired Loans • Gross impaired loans (GIL) ratio3 at 102 bps, up By Industry CA & CA & 3 bps Q/Q ($MM, as at Q3 25) U.S. Total U.S. Total Other Other1 • Formations relatively stable Q/Q Total Consumer 411 74 485 1,048 380 1,428 Service Industries
Slide 24: Appendix
Appendix SSS SS EE
Slide 25: Loan Portfolio Overview
Loan Portfolio Overview Gross Loans & Acceptances Impaired PCL ($B) ($MM) • Loan portfolio is well-diversified by product, industry and geography By Industry Canada & Total Canada & Total U.S. U.S. (As at Q3 25) Other1 BMO Other1 BMO Residential Mortgages 161.8 33.4 195.2 13 1 14 Gross Loans & Accep
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 Construction, 2% Utilities, 2% ($B, as at Q3 25) Financing Products, 2% Total Consumer 243.4 57.4 300.8 44% Other¹, 4% Commercial Real Transp
Slide 27: Commercial Real Estate
Commercial Real Estate • Commercial Real Estate (CRE) portfolio at $77B represents 11% of CRE by Geography1 Total Gross Loans & Acceptances • Well-managed with consistent and conservative underwriting Ontario 29% British Columbia 13% standards; investment grade (45%), watchlist (6%) and impaired (1%
Slide 28: Canadian Consumer Portfolio Overview
Canadian Consumer Portfolio Overview • Total Canadian Consumer lending portfolio balances of Canadian Consumer Portfolio $243.4B in Q3’25, represent 36% of total loans – 89% of the portfolio is secured – 90+ day delinquency rate for the portfolio at 46 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 Residential-Secured Lending by Region ($213.1B) $213.1B, representing 31% of total loans Amortizing HELOC $107.9 ─ LTV1 on uninsured of 54% Revolving HELOC 18% $40.2 ─ 90+ day delinquenc
Slide 30: Canadian Mortgage Portfolio Profile
Canadian Mortgage Portfolio Profile • Renewal risk has decreased significantly due to Mortgage Maturity Schedule lower interest rates and proactive customer ($161.8B; 65% fixed rate, 35% variable rate) outreach 48.7 47.9 – Over 30% of mortgages renewing in Q3’25 experienced a payment decrease 11.4 –
Slide 31: Trading-Related Net Revenue and Value-at-Risk
Trading-Related Net Revenue and Value-at-Risk May 1, 2025 to July 31, 2025 (pre-tax basis and in millions of Canadian dollars) 40 20 0 (20) (40) (60) Daily Revenue Total Trading VaR Risk Review • August 26, 2025 31
Slide 32: Canadian Personal & Commercial Banking – Balances
Canadian Personal & Commercial Banking – Balances Average Gross Loans & Acceptances ($B) Average Deposits ($B) 333.0 337.6 340.2 342.1 326.0 312.5 314.0 306.4 310.6 310.6 143.9 145.7 146.4 147.2 140.2 208.6 211.9 213.1 212.4 211.3 7.1 6.9 6.9 7.0 6.8 52.5 53.1 53.3 53.5 53.9 13.6 13.9 14.2 13.8 13.8
Slide 33: U.S. Personal & Commercial Banking – Balances
U.S. Personal & Commercial Banking – Balances Amounts on this slide are in U.S. dollars1 Average Gross Loans & Acceptances (US$B) Average Deposits (US$B) 167.2 168.3 151.3 150.3 150.9 149.4 163.8 162.8 161.4 148.5 33.2 34.5 35.0 35.0 35.3 83.7 84.4 84.7 83.6 81.2 118.1 115.8 115.9 114.3 113.2 80.1 8
Slide 34: Canadian and U.S. Deposit trends
Canadian and U.S. Deposit trends Canadian P&C and BMO Wealth Management deposits CDE$B, average balances 353 359 364 363 363 7% 5% 5% 5% 7% Commercial 21% 22% 22% 23% 20% 39% 39% 38% 37% 36% P&BB / BMO Wealth Management 33% 33% 34% 35% 36% Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Chequing & Savings Term Deposi
Slide 35: Asset Yields and Liabilities Costs
Asset Yields1 and Liabilities Costs2 Average Earning Assets ($B) and Yield1 (%) Average Liabilities ($B) and Costs2 (%) 5.40% 3.75% 5.27% 3.40% 5.00% 4.91% 3.10% 4.85% Yield on Total 3.06% 3.01% Cost on Total Average Liabilities Earning Assets 1,436 1,417 1,336 1,349 1,273 1,320 1,309 1,288 1,306 1,
Slide 36: Interest Rate Sensitivity
Interest Rate Sensitivity • Earnings benefit/exposure to an incremental +/- 100 bps rate • Long-term investment rates increased 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 37: 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 • BMO ranked one of the Best 50 Corporate Citi
Slide 38: Glossary
Glossary Term Definition Adjusted Earnings and Measures Adjusted results 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 be reflective of ongoing business performance. Management considers bot
Slide 39: Glossary
Glossary Term Definition Provision for Credit Losses (PCL) Provision for Credit Losses (PCL) Impaired Loans Ratio is calculated as the annualized provision for credit losses on Impaired Loans Ratio impaired loans as a percentage of average net loans and acceptances Provision for Credit Losses (PCL)
Slide 40: 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 41: Reported and Adjusted Results Reconciliation
Non-GAAP and Other Financial Measures Reported and Adjusted Results Reconciliation Adjusting Items (Canadian $ in millions, except as noted) Q3 2025 Q2 2025 Q3 2024 YTD 2025 YTD 2024 Reported Net interest income 5,496 5,097 4,794 15,991 14,030 Adjusted results in the current quarter and prior period
Slide 42: Reported and Adjusted Results Reconciliation by Operating Group
Non-GAAP and Other Financial Measures Reported and Adjusted Results Reconciliation by Operating Group (Canadian $ in millions unless otherwise stated) Q3 25 Q2 25 Q1 25 Q4 24 Q3 24 YTD 2025 YTD 2024 Total Bank Reported Net Income 2,330 1,962 2,138 2,304 1,865 6,430 5,023 Acquisition and integration
Slide 43: Pre-Provision, Pre-Tax Earnings Reconciliation
Non-GAAP and Other Financial Measures Pre-Provision, Pre-Tax Earnings (PPPT) Reconciliation (Canadian $ in millions unless otherwise stated) Q3 25 Q2 25 Q1 25 Q4 24 Q3 24 YTD 2025 YTD 2024 Total Bank Reported Income before taxes 3,086 2,606 2,828 3,007 2,447 8,520 6,528 Total provision for (recovery
Slide 44: 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) Q3 25 Q2 25 Q1 25 Q4 24 Q3 24 YTD 2025 YTD 2024 Total Bank Reported Revenue 8,988 8,679 9,266 8,957 8,192 26,933 23,838 Legal provision/reversal (including
Slide 45: Reported and Adjusted Results Summary by Operating Group
Non-GAAP and Other Financial Measures Reported and Adjusted Results Summary by Operating Group Reported Adjusted Reported Adjusted (Canadian $ in millions unless otherwise stated) (Canadian $ in millions unless otherwise stated) Q3 25 Q2 25 Q3 24 Q3 25 Q2 25 Q3 24 Q3 25 Q2 25 Q3 24 Q3 25 Q2 25 Q3 24
Slide 46: Investor Relations
BMO Financial Group Investor Relations Contact Information bmo.com/investorrelations E-mail: investor.relations@bmo.com