BMO Financial Group Reports First Quarter 2025 Results

Core Insights - BMO Financial Group reported strong financial results for the first quarter of 2025, with net income of $2,138 million and earnings per share (EPS) of $2.83, reflecting significant increases from the previous year [2][13] - The adjusted net income for the quarter was $2,289 million, with an adjusted EPS of $3.04, both showing substantial growth compared to the first quarter of 2024 [2][13] Financial Performance - Reported net income increased by 65% from $1,292 million in Q1 2024 to $2,138 million in Q1 2025 [2][13] - Adjusted net income rose by 21% from $1,893 million in Q1 2024 to $2,289 million in Q1 2025 [2][13] - The provision for credit losses was $1,011 million, up from $627 million in the prior year, indicating a cautious approach to credit risk management [15][13] Operating Segments - Canadian P&C reported net income of $894 million, a decrease of 3% from the prior year, despite a 10% increase in revenue driven by higher net interest income [7] - U.S. P&C saw a 4% increase in reported net income to $580 million, with adjusted net income rising by 2% to $650 million [8] - BMO Wealth Management reported a significant increase in net income of 53% to $369 million, attributed to stronger global markets [10] - BMO Capital Markets experienced a 49% increase in reported net income to $587 million, driven by strong revenue performance [11] - Corporate Services reported a reduced net loss of $292 million, compared to a loss of $822 million in the prior year [12] Capital and Dividends - The Common Equity Tier 1 (CET1) Ratio was reported at 13.6%, an increase from 12.8% in the previous year, indicating a strong capital position [17][13] - BMO announced a quarterly dividend of $1.59 per common share, reflecting a 5% increase from the prior year [5] Credit Quality - The total provision for credit losses increased to $1,011 million, with a significant rise in provisions for impaired loans, particularly in Commercial Banking and Canadian unsecured consumer lending [15][13]