Bank of Montreal (CSE:BMO) reported better-than-expected results for the fiscal third quarter, driven by growth in its wealth management and US personal and commercial banking units.
Net income grew 25% year-over-year to $2.33 billion, while adjusted net income was up 21% at $1.98 billion.
Earnings per share of $3.23 were up 22% from $2.64 in the year-ago quarter, beating Wall Street estimates of $2.95.
Revenue increased to $8.99 billion from $8.19 billion for the same period last year.
The bank also narrowed its provision for credit losses year-over-year to $797 million from $906 million.
Return on equity (ROE) improved to $11.6% reported and 12% adjusted, compared to 10% and 10.6%, respectively, in Q3 2024.
BMO's wealth management segment showed a 21% increase in adjusted net income compared to the same period last year, driven by 13% revenue growth, attributed to higher markets and growth in client assets and balances.
The bank is also expanding this business through a planned acquisition of Burgundy Asset Management, which will enhance their wealth management capabilities focused on high-net-worth clients.
Meanwhile, the bank’s US personal and commercial banking segment reported a 42% year-over-year increase in adjusted net income, driven by 10% growth in pre-provision, pre-tax earnings and lower provisions for credit losses.
“BMO delivered another quarter of strong earnings growth, with solid revenue performance and good expense management,” BMO CEO Darryl White said in a statement.
“Disciplined execution against each of our ROE rebuild strategies is driving tangible results through consistent positive operating leverage, improving credit performance and strengthening profitability, especially across our US businesses,”
Shares of BMO added 1.7% at C$160 post-earnings, while its US-listed shares were up 3.4% at $117.60.