BMO(US:BMO) Prnewswire·2025-12-04 11:00Core Insights - BMO Financial Group reported a strong financial performance for fiscal 2025, with net income increasing to $8,725 million from $7,327 million in the previous year, and adjusted net income rising to $9,248 million from $7,449 million [2][13][34] - The company achieved an adjusted EPS of $12.16, a 26% increase from $9.68 in fiscal 2024, and a reported ROE of 10.6%, up from 9.7% [2][13][34] - BMO's CEO highlighted the bank's commitment to delivering robust earnings growth and improving return on equity, driven by pre-provision, pre-tax earnings expansion and positive operating leverage [4][5] Financial Results Highlights - For Q4 2025, reported net income was $2,295 million, slightly down from $2,304 million in Q4 2024, while adjusted net income rose to $2,514 million from $1,542 million [3][13] - The total revenue for fiscal 2025 was $36,274 million, an increase from $32,795 million in fiscal 2024, with net interest income and non-interest revenue both showing growth [25][34] - The provision for credit losses (PCL) decreased to $3,617 million in fiscal 2025 from $3,761 million in fiscal 2024, indicating improved credit quality [13][34] Segment Performance - Canadian Personal and Commercial Banking reported adjusted net income of $800 million, a 5% increase, driven by a 7% rise in revenue [9] - U.S. Banking saw reported net income increase significantly to $807 million, up $526 million from the prior year, reflecting a 3% rise in revenue [10][11] - Wealth Management reported a 27% increase in net income to $383 million, supported by stronger global markets and higher brokerage transaction volumes [12] - Capital Markets achieved a reported net income of $521 million, a 107% increase, driven by higher revenues in Global Markets and Investment Banking [15] Capital and Dividends - BMO declared a quarterly dividend of $1.67 per common share, a 2% increase from the prior quarter and a 5% increase from the previous year [6][13] - The Common Equity Tier 1 (CET1) Ratio was reported at 13.3%, a slight decrease from 13.6% in the previous quarter, reflecting capital management strategies [17][34] Strategic Initiatives - The company is focusing on digital and AI-powered solutions to enhance client value and is expanding its private wealth solutions through the acquisition of Burgundy Asset Management [5] - BMO has restructured its U.S. wealth management business, combining it with U.S. Personal and Commercial Banking to create a unified U.S. Banking operating segment [8]