BMO Shares Rise as Q1 Earnings Increase on Higher NII, Provisions Jump

Core Insights - Bank of Montreal (BMO) reported a strong performance in its first quarter fiscal 2025, with adjusted earnings per share of C$3.04, reflecting an 18.8% year-over-year growth [1][2] - The bank's net income surged 65.5% year-over-year to C$2.13 billion ($1.5 billion), driven by higher revenues despite increased provisions for credit losses and non-interest expenses [2][3] Financial Performance - Total adjusted revenues reached C$9.27 billion ($6.52 billion), marking an 18% increase year-over-year [3] - Net interest income (NII) rose 14% year-over-year to C$5.4 billion ($3.8 billion), while non-interest income increased by 24.2% to C$3.87 billion ($2.72 billion) [3] - Adjusted non-interest expenses grew by 9.2% to C$5.22 billion ($3.67 billion) [3] Asset and Deposit Growth - As of January 31, 2025, total assets were C$1.47 trillion ($1 trillion), up 4.1% from the previous quarter [5] - Total net loans increased by 1.6% sequentially to C$688.7 billion ($475.4 billion), and total deposits rose by 1.5% to C$996.8 billion ($688 billion) [5] Profitability and Capital Ratios - Return on common equity (adjusted) improved to 11.3% from 10.6% year-over-year, while adjusted return on tangible common equity rose to 14.9% from 14.3% [6] - The Common Equity Tier-I ratio increased to 13.6% from 12.8% a year ago, and the Tier-I capital ratio improved to 15.4% from 14.4% [6] Strategic Outlook - BMO's strategies are expected to support revenue growth in the upcoming period, although elevated expenses and macroeconomic uncertainties pose challenges [7]