Q1 2025 Bank of Montreal Earnings Call Transcript
Key Points
- Bank of Montreal (BMO) reported a strong start to the year with first-quarter adjusted net income of $2.3 billion and earnings per share of $3.04.
- Revenue growth was broad-based, up 18%, driving strong all-bank operating leverage of 8.9%.
- The CET1 ratio remained robust at 13.6%, providing ample opportunity for organic growth and investment while returning capital to shareholders.
- BMO Wealth Management saw a 48% increase in pre-provision pretax earnings, with strong revenue growth in wealth and asset management.
- BMO Capital Markets experienced a 67% growth in pre-provision pretax earnings, driven by strong Global Markets trading performance and client flows in the US business.
- Provisions for credit losses were $1 billion, reflecting higher delinquencies in credit cards and other unsecured personal loans.
- The economic outlook is uncertain due to potential tariffs, which could impact client activity and lead to variability in future quarters.
- US Commercial Banking loan growth remains subdued, consistent with industry trends.
- Higher performance-based compensation and technology costs contributed to a 9% increase in expenses.
- The effective tax rate increased to 24.5% due to the implementation of the global minimum tax.
Good morning, and welcome to BMO Financial Group's Q1 2025 earnings release and conference call for February 25, 2025. Your host for today is Christine Viau. Please go ahead.
Thank you, and good morning. We will begin the call with remarks from Darryl White, BMO's CEO; followed by Tayfun Tuzun, our Chief Financial Officer; and Piyush Agrawal, our Chief Risk Officer. Also present to take questions today are Ernie Johannson, Head of BMO North American Personal Business Banking; Nadim Hirji, Head of BMO Commercial Banking; Alan Tannenbaum, Head of BMO Capital Markets; Deland Kamanga, Head of BMO Wealth Management; and Darrel Hackett, BMO US CEO.
(Event Instructions) As noted on slide 2, forward-looking statements may be made during this call, which involve assumptions that have inherent risks and uncertainties. Actual results may differ materially from these statements.
I would also remind listeners that the bank uses non-GAAP financial measures to arrive at adjusted results,
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