Bank of Montreal (BMO) (Q3 2026) Earnings Call Highlights: Record EPS

BMO and Scotiabank reported Q3 profits beating estimates, but cautioned about trade uncertainty. BMO's net income fell 25% YoY to $1.75B, while Scotiabank's rose 17% to $2.95B. Both banks noted minimal loan exposure to tariffs. BMO aims for 15% ROE by 2027, while Scotiabank focuses on organic growth and small acquisitions. Investors watch for bank stock performance amid tariff concerns.

Canada's Big Six banks started Q3 fiscal 2026 earnings with Bank of Nova Scotia (BNS) and Bank of Montreal (BMO) beating estimates. BNS reported CAD 2.28 adj. EPS (9.6% beat) and CAD 10.54B revenue (+12% YoY), while BMO reported CAD 3.96 adj. EPS (5.9% beat) and CAD 9.96B revenue (+11% YoY). Both banks showed strong capital markets performance and improved credit quality, with BNS and BMO returning capital to shareholders through buybacks and dividends.

Bank of Montreal (BMO) reported Q3 net interest income up 5% YoY, but net interest margin down 3 bps sequentially. Expenses rose 9%, but efficiency ratio improved to 54.9%. BMO plans to sell certain businesses, adding 50 bps to its CET1 ratio. It also announced a share buyback plan. Canadian and U.S. banking segments showed growth, with wealth management and capital markets net income up 22% and 45% respectively. Credit losses declined, and the bank maintained its fiscal 2026 credit guidance.

BMO's Q3 earnings, possibly its last before selling its transportation unit, showed improved credit conditions in the trucking industry. Net writeoffs were stable at Ca $24M, while provisions for credit losses fell to $15M, the lowest since Q1 2023. Allowances for credit losses and gross impaired loans also declined, indicating a strengthening freight market. Gross loans and acceptances for the transportation sector were $12.78B, up slightly from the previous quarter, but loan originations dropp

Bank of Montreal reported Q3 net income of $1.75B, down from $2.33B YoY due to a $962M charge. Adjusted net income rose 19% to $2.85B, beating estimates. BMO announced a share buyback and maintained its dividend. All segments showed growth, with capital markets up 45%.

Bank of Montreal (BMO) and Bank of Nova Scotia (Scotiabank) reported Q3 profits exceeding estimates, driven by capital markets and domestic business strength. BMO's adjusted net income rose 19.2% to C$2.86B, while Scotiabank's increased 18% to C$2.97B. Both banks benefited from record earnings in key segments, despite ongoing Canada-U.S. trade tensions.