{"id":697165,"date":"2026-05-27T13:24:08","date_gmt":"2026-05-27T13:24:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/697165\/"},"modified":"2026-05-27T13:24:08","modified_gmt":"2026-05-27T13:24:08","slug":"bmo-beats-profit-estimates-on-boost-in-capital-markets-u-s-division","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/697165\/","title":{"rendered":"BMO beats profit estimates on boost in capital markets, U.S. division"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

BMO was the second major Canadian bank to report earnings on Wednesday.Isabella Falsetti\/The Globe and Mail<\/p>\n

Bank of Montreal BMO-T<\/a> reported higher second-quarter profit that topped analysts\u2019 estimates on a boost from its capital markets business and its division in the United States. <\/p>\n

BMO earned $2.6-billion, or $3.53 per share, in the three months that ended April 30, up 34 per cent from the same quarter last year. <\/p>\n

Adjusted to exclude certain items, the bank said it earned $3.67 per share. That beat the $3.41 per share analysts expected, according to data from Bloomberg. <\/p>\n

In March, BMO unveiled its new strategy<\/a> to revive its U.S. business and boost its return on equity \u2013 a closely watched measure of profitability. In 2024, BMO set a goal of improving its ROE to 15 per cent by the end of 2027.<\/p>\n

The U.S. division \u2013 which makes up 40 per cent of BMO\u2019s earnings \u2013 is weighing on the bank\u2019s profitability. BMO set a target to improve the unit\u2019s ROE from 8 per cent to 12 per cent by 2028. <\/p>\n

In the second quarter, BMO\u2019s return on equity edged higher to 13 per cent and 8.6 per cent in its U.S. business. <\/p>\n

\u201cOur second quarter results continued to demonstrate meaningful progress and momentum against these commitments,\u201d BMO chief executive officer Darryl White said in a statement. <\/p>\n

The bank raised its quarterly dividend by 4 cents to $1.71 per share. <\/p>\n

BMO is the second major Canadian bank to report earnings<\/a> for the fiscal second quarter. Earlier, Bank of Nova Scotia BNS-T<\/a> posted earnings<\/a> that beat analyst expectations. National Bank of Canada NA-T<\/a> also reports earnings on Wednesday. Royal Bank of Canada RY-T<\/a>, Toronto-Dominion Bank TD-T<\/a> and Canadian Imperial Bank of Commerce CM-T<\/a> will post earnings on Thursday. <\/p>\n

In the quarter, BMO set aside $739-million in provisions for credit losses \u2013 the funds banks set aside to cover loans that may default. That was lower than analysts expected and included $734-million against loans that the bank believes may not be repaid, based on models that use economic forecasting to predict future losses. <\/p>\n

Revenue rose 10 per cent in the quarter to $9.6-billion, while expenses increased 6 per cent to $5.3-billion. <\/p>\n

Profit from Canadian personal and commercial banking was $884-million, rising 15 per cent from a year earlier on higher revenue and lower provisions, partially offset by higher expenses. <\/p>\n

Profit from the bank\u2019s U.S. unit rose 32 per cent to $790-million, bolstered by higher revenue and a lower provisions. <\/p>\n

Capital markets profit surged 47 per cent to $638-million, driven by higher revenue in global markets and investment and corporate banking, as well as lower provisions. <\/p>\n

The wealth management division generated $428-million of profit, up 34 per cent as the bank integrates its takeover of <\/a>Toronto-based Burgundy Asset Management. <\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: BMO was the second major Canadian bank to report earnings on Wednesday.Isabella Falsetti\/The…\n","protected":false},"author":2,"featured_media":697166,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-697165","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/697165","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=697165"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/697165\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/697166"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=697165"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=697165"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=697165"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}