Q2 2025 Bank of Montreal Earnings Call Transcript
Key Points
- Bank of Montreal (BMO) reported a 1% increase in adjusted net income and earnings per share, reaching $2 billion and $2.62, respectively.
- The bank achieved a 12% growth in pre-provision pre-tax earnings (PPPT), demonstrating strong performance across its diversified businesses.
- BMO's capital position remains robust with a CET1 ratio of 13.5%, supporting client needs, growth investments, and shareholder returns through share buybacks and dividend increases.
- BMO Wealth Management delivered a return on equity of 29% year to date, with strong net new asset growth and market share gains in Canadian mutual funds.
- BMO Capital Markets exceeded guidance with strong trading revenue, particularly in commodities, and continued strength in securitization, contributing to a PPPT of $684 million.
- The economic backdrop in North America remains challenging, with GDP growth expected to slow to 1% in Canada and 1.3% in the US in 2025.
- Impaired provisions for credit losses remain a concern, with ongoing uncertainty and volatility in the economic environment related to trade policies.
- BMO's US P&C segment experienced a sequential decline in commercial loan growth, reflecting muted borrowing demand in the market.
- The bank's non-interest revenue was impacted by markdowns in capital markets and a loss on the sale of a US non-relationship credit card portfolio.
- Macro uncertainties have kept demand muted across client segments, affecting business activity and loan demand in both Canada and the US.
Good morning, and welcome to the BMO Financial Group's Q2 2025 earnings release and conference call for May 28, 2025. Your host for today is Christine Viau. Please go ahead.
Thank you, and good morning. We will begin today's 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 this morning are Ernie Johannson, Head of BMO North American Personal and 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.
I would ask you to limit to one question during the Q&A to give everyone a chance to participate.
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 could differ materially from these statements.
I would
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