BMO Financial Group Reports Second Quarter 2025 Results

Financial Performance - BMO Financial Group reported net income of $1,962 million for Q2 2025, an increase from $1,866 million in Q2 2024, with reported EPS rising to $2.50 from $2.36 [2][13] - Adjusted net income for Q2 2025 was $2,046 million, up from $2,033 million in the prior year, with adjusted EPS increasing to $2.62 from $2.59 [2][13] - Year-to-date net income reached $4,100 million, compared to $3,158 million in the same period last year, with year-to-date adjusted net income at $4,335 million, up from $3,926 million [13][26] Revenue and Expenses - Total revenue for Q2 2025 was $8,679 million, compared to $7,974 million in Q2 2024, driven by a 6% increase in net interest income [24] - Non-interest revenue for Q2 2025 was $3,582 million, up from $3,459 million in the prior year [24] - Provision for credit losses increased to $1,054 million from $705 million year-over-year, reflecting higher provisions in Canadian Commercial Banking and unsecured consumer lending [15][24] Operating Segments - Canadian P&C reported net income of $782 million, a decrease of 10% from the prior year, despite a 6% increase in revenue [7] - U.S. P&C net income was $546 million, a slight increase from the previous year, aided by a stronger U.S. dollar [8] - BMO Wealth Management saw net income rise to $361 million, a 13% increase, while BMO Capital Markets reported a net income of $431 million, down 6% from the prior year [10][11] Capital and Dividends - BMO declared a quarterly dividend of $1.63 per common share, marking a 5% increase from the previous year and a 3% increase from the prior quarter [5][13] - The Common Equity Tier 1 (CET1) Ratio was reported at 13.5%, slightly down from 13.6% in the previous quarter [17] Management Commentary - The CEO highlighted strong revenue growth and positive operating leverage across all operating groups, with a focus on rebuilding return on equity and optimizing the balance sheet [3][4] - The company emphasized its robust capital position, allowing for capital returns to shareholders through buybacks and increased dividends [4]