Financial Data and Key Metrics Changes - Third quarter earnings per share increased by 22% to $3.23, with net income reaching $2.4 billion, marking the second highest quarter on record [6] - Pre-provision pre-tax earnings (PPPT) rose by 13% to $4 billion, with strong contributions from all operating groups [6][8] - The Common Equity Tier 1 (CET1) ratio remained strong at 13.5%, supporting share buybacks and client growth [7][33] - Year-to-date revenue growth was 12%, with PPPT up 19% and positive operating leverage of 4.7% [8][9] Business Line Data and Key Metrics Changes - Canadian Personal Banking saw strong customer growth, with checking account growth nearly double the industry benchmark, and deposits in the savings amplifier account surpassed $12 billion [14] - Canadian Commercial Banking experienced broad-based loan and deposit growth, with fee revenue in treasury and payment solutions up 23% year-to-date [15] - U.S. Personal and Commercial Banking (P&C) net income increased by 42%, driven by strong PPPT growth of 10% and positive operating leverage of 5% [36] - BMO Wealth Management reported a 21% increase in net income, driven by strong revenue growth in wealth and asset management [38] Market Data and Key Metrics Changes - Average loans grew by 2% year-over-year, primarily due to growth in residential mortgages and commercial loans in Canada [27] - Customer deposits increased by 3% from last year, with growth in Canadian everyday banking and commercial operating balances [29] - Non-interest revenue rose by 3% year-over-year, driven by strong wealth management and underwriting fees [32] Company Strategy and Development Direction - The company is focused on achieving a 15% medium-term return on equity (ROE) target, with a 12% target for U.S. P&C [25] - Recent organizational changes aim to enhance performance by integrating U.S. Personal and Business Banking, Commercial, and Wealth Management under unified leadership [12][13] - The acquisition of Burgundy Asset Management is expected to expand BMO's wealth management capabilities [20] Management's Comments on Operating Environment and Future Outlook - The management noted that while trade-related risks have eased, geopolitical challenges persist, and the Canadian economy is experiencing modest growth [10] - In the U.S., strong corporate earnings and consumer spending are expected to support growth in 2026 despite headwinds from higher interest rates [11] - Management expressed confidence in achieving ROE targets while managing risks effectively, with ongoing investments in technology and talent [22][42] Other Important Information - The company completed 6 million share repurchases during the quarter, with plans for an additional buyback pending regulatory approval [33] - The CET1 ratio remained unchanged, reflecting good internal capital generation [34] Q&A Session Summary Question: U.S. Loan and Revenue Growth Outlook - Management indicated that while there are macro factors affecting loan growth, they remain comfortable with their position and expect to grow at or above market rates [53][55] Question: Recovery on Performing Loans - Management noted that the improved performance in the U.S. is due to a better macroeconomic forecast and stabilization of portfolio quality [65][66] Question: Canadian Economic Outlook - Management described the Canadian economy as experiencing modest growth, with expectations for improvement depending on macro and trade factors [72][74] Question: Operating Leverage Expectations - Management confirmed their commitment to achieving positive operating leverage and efficiency improvements moving forward [102][103] Question: Credit Migration and PCLs - Management expressed confidence that they have passed the peak of impaired PCLs in the U.S., with ongoing improvements expected [68][69]

Financial Data and Key Metrics Changes - Third quarter earnings per share increased by 22% to $3.23, with net income of $2.4 billion, marking the second highest quarter on record [5] - Pre-provision pre-tax earnings rose by 13% to $4 billion, with a return on equity improving to 12% for the quarter [6][7] - Year-to-date revenue growth was 12%, and pre-provision pre-tax earnings increased by 19%, achieving positive operating leverage of 4.7% for six consecutive quarters [7][21] Business Line Data and Key Metrics Changes - Canadian Personal Banking saw strong customer growth, with checking account growth nearly double the industry benchmark, and deposits in the savings amplifier account surpassed $12 billion [12] - Canadian Commercial Banking experienced broad-based loan and deposit growth, with fee revenue from integrated treasury and payment solutions up 23% year-to-date [13] - U.S. Personal and Commercial Banking reported a 42% increase in net income, driven by strong pre-provision pre-tax earnings growth of 10% [31] - BMO Wealth Management achieved a 21% increase in net income, supported by strong revenue growth in wealth and asset management [35] - BMO Capital Markets net income rose by 12%, with revenue up 7% due to strong performance in global markets and higher trading revenue [36] Market Data and Key Metrics Changes - Average loans grew by 2% year-over-year, driven by residential mortgages and commercial loans in Canada, while U.S. commercial loans declined due to muted loan demand [25] - Customer deposits increased by 3% from last year, with growth in Canadian everyday banking and commercial operating balances [26] - Net interest income (excluding trading) was up 9% year-over-year, with net interest margin expanding by 16 basis points [27] Company Strategy and Development Direction - The company is focused on executing its ROE rebuild strategies, with a medium-term target of 15% for BMO and 12% for U.S. Personal and Commercial Banking [23] - Recent organizational changes in U.S. Banking aim to enhance performance by integrating personal, commercial, and wealth management businesses [10] - The acquisition of Burgundy Asset Management is expected to expand BMO's wealth management capabilities [17] Management's Comments on Operating Environment and Future Outlook - Management noted that while trade-related risks have eased, geopolitical challenges persist, and the Canadian economy is experiencing modest growth [8] - The U.S. economy remains resilient, supported by strong corporate earnings and consumer spending, which should aid growth in 2026 [9] - Management expressed confidence in achieving targets despite uncertainties in the economic environment, particularly in Canada [72] Other Important Information - The CET1 ratio remained strong at 13.5%, with share buybacks ongoing to return excess capital to shareholders [6][30] - The company is investing in digital and AI capabilities to enhance client services and operational efficiency [19] Q&A Session Summary Question: U.S. Loan and Revenue Growth Outlook - Management indicated that while there are macro factors affecting loan growth, they remain comfortable with their position and expect to grow at or above market rates [50][52] Question: Recovery on Performing Loans - Management noted that the recovery in performing loans is driven by improved macroeconomic forecasts and stabilization in portfolio quality, particularly in the U.S. [61][62] Question: Canadian Economic Outlook - Management described the Canadian economy as experiencing modest growth, with expectations of 1% to 1.5% growth in the latter half of the year [70][71] Question: Operating Leverage Expectations - Management confirmed their commitment to achieving positive operating leverage and efficiency improvements, aiming for a continued positive trend [100][101] Question: Credit Migration Speed - Management highlighted that improvements in credit migration are due to strong risk management practices and a favorable economic environment, particularly in the U.S. [102][105]