{"id":182531,"date":"2026-08-25T16:58:21","date_gmt":"2026-08-25T16:58:21","guid":{"rendered":"https:\/\/www.europesays.com\/canada\/182531\/"},"modified":"2026-08-25T16:58:21","modified_gmt":"2026-08-25T16:58:21","slug":"bank-of-montreal-beats-earnings-estimates-on-us-banking-strength","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/canada\/182531\/","title":{"rendered":"Bank of Montreal beats earnings estimates on US banking strength"},"content":{"rendered":"

\"Bank<\/a> Bank of Montreal beats earnings estimates on US banking strength Proactive uses images sourced from Shutterstock <\/p>\n

Bank of Montreal (TSX:BMO)\u00a0beat analyst estimates in the third quarter, driven by stronger-than-expected results from its US banking and capital markets divisions, even as overall quarterly profit declined. <\/p>\n

Adjusted earnings per share came in at $2.86, topping estimates of $2.71 and marking a 21.7% increase from $2.35 a year earlier. Revenue rose 9.26% year-over-year to $7.148 billion from $6.542 billion. <\/p>\n

The bank also announced a share buyback plan. <\/p>\n

Analysts at Jefferies said BMO’s results were highlighted by a strong performance at its US retail bank platform, with loan book acceleration, excluding the impact of divestitures, expected to support further earnings growth and profitability for the segment. The firm noted that while the market may not give full credit for capital markets strength across the sector, the return on equity expansion at BMO was a positive development. <\/p>\n

Core ROE rose 50 basis points sequentially to 14% in the quarter, while the bank’s regulatory capital ratio held steady at 13%. Credit quality also improved, with both provisions and gross impaired loans down from the second quarter. <\/p>\n

Jefferies said loan growth in the US appears to have reaccelerated following BMO’s portfolio optimization plan, though the bank’s announced branch divestitures could cause some near-term disruption. The firm expects BMO to be active on its renewed normal course issuer bid and said the bank could exit 2026 with a capital ratio below 13%. <\/p>\n

Jefferies raised its price target on BMO by $2 to $227, citing a path for the bank to exceed its 15% ROE target, while maintaining that the broader banking group remains fully valued. <\/p>\n

Shares were flat in Toronto and New York. <\/p>\n","protected":false},"excerpt":{"rendered":"Bank of Montreal beats earnings estimates on US banking strength Proactive uses images sourced from Shutterstock Bank of…\n","protected":false},"author":2,"featured_media":182532,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[424,27538,57625,2298,16349,57624,50],"class_list":["post-182531","post","type-post","status-publish","format-standard","has-post-thumbnail","category-montreal","tag-bank-of-montreal","tag-capital-markets","tag-capital-ratio","tag-earnings-growth","tag-earnings-per-share","tag-jefferies","tag-montreal"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/182531","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=182531"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/182531\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/182532"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=182531"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=182531"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=182531"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}