Bank of Montreal reported third-quarter 2026 net income of C$1.75 billion, down from C$2.33 billion in the prior-year quarter on a reported basis, but delivered a record adjusted earnings per share of C$3.96, up 22% year on year, according to figures published in its quarterly earnings release.
Reported earnings per share came in at C$2.38 for the three months, with the divergence between headline and adjusted numbers driven mainly by a goodwill charge of about C$962 million after tax related to the announced sale of BMO's Transportation and Vendor Finance businesses. On the adjusted basis that management uses to gauge core trends, the quarter marked an all-time high for EPS.
PRE-PROVISION EARNINGS UP 13%
The underlying operating momentum was reflected in pre-provision pre-tax earnings, a measure BMO uses to assess its ability to generate sustained earnings growth excluding credit losses. Adjusted pre-provision pre-tax earnings reached C$4.5 billion in the third quarter, up 13% year on year, and every business segment delivered record pre-provision pre-tax earnings.
Adjusted revenue rose 11% to C$9.96 billion and adjusted operating leverage was positive 1.6%. The bank is one of Canada's Big Six lenders and operates a large personal and commercial banking franchise in both Canada and the United States, alongside capital markets and wealth management arms.
BMO attributed the quarter to disciplined execution against the commitments made at its March Investor Day to elevate ROE and accelerate growth; adjusted ROE rose to 14.0% from 12.0%.
REPORTED FIGURES REFLECT ONE-OFF ITEMS
The decline in reported net income to C$1.75 billion from C$2.33 billion a year earlier was driven by the goodwill-related charge on the announced sale of the Transportation Finance and Vendor Finance businesses. Reported EPS was C$2.38, compared with C$3.14 a year earlier.
BMO said credit performance improved in the quarter, with provisions for credit losses falling to C$722 million from C$797 million a year earlier. Adjusted non-interest revenue rose 26% to C$4.39 billion, driven mainly by trading, wealth management fees and underwriting and advisory fees, while net interest income rose by just C$71 million to C$5.57 billion.
The bank operates on a fiscal year ending 31 October, meaning the third-quarter results cover the three months to 31 July 2026 and take the group into the final stretch of its financial year.
BMO reported on the same day as Scotiabank.
Chief executive Darryl White said every business segment delivered record pre-provision pre-tax earnings, with sustained momentum in Capital Markets and Wealth Management and continued commercial loan growth in both Canada and the US. White added that BMO would continue to reallocate and deploy capital to areas positioned to deliver sustainable long-term value while maintaining a robust CET1 ratio, which stood at 13.0% at quarter-end.