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

Shares of Bank of Montreal BMO jumped 4.4% on the NYSE in response to the release of its first quarter fiscal 2025 (ended Jan. 31) results. Adjusted earnings per share of C$3.04 grew 18.8% year over year. Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.Results benefited from higher revenues and a solid growth in loans and deposit balance. However, a significant jump in provision for credit losses and higher non-interest expenses acted as headwinds. After considering non-recurring items, net income was C$2.13 billion ($1.5 billion), which surged 65.5% from the year-ago quarter.BMO’s Revenues Rise, Expenses UpTotal revenues (on an adjusted basis), net of insurance claims, commissions and changes in policy benefit liabilities (CCPB), were C$9.27 billion ($6.52 billion), up 18% year over year.NII rose 14% year over year to C$5.4 billion ($3.8 billion). Also, non-interest income came in at C$3.87 billion ($2.72 billion), up 24.2%.Adjusted non-interest expenses increased 9.2% to C$5.22 billion ($3.67 billion).The adjusted efficiency ratio (net of CCPB) was 56.3%, down from 60.9% as of Jan. 31, 2024.Provision for credit losses (adjusted) was C$1.01 billion ($0.7 billion) in the reported quarter, surging 61.2% from the year-ago quarter.Loans & Deposits Rise for Bank of MontrealAs of Jan. 31, 2025, total assets were C$1.47 trillion ($1 trillion), up 4.1% from the prior-quarter end.Total net loans grew 1.6% sequentially to C$688.7 billion ($475.4 billion). Total deposits increased 1.5% to C$996.8 billion ($688 billion).BMO’s Profitability Ratios & Capital Ratios ImproveBank of Montreal’s return on common equity (as adjusted) was 11.3% in the fiscal first quarter compared with 10.6% on Jan. 31, 2024. Adjusted return on tangible common equity was 14.9% compared with 14.3% in the year-ago quarter.As of Jan. 31, 2025, the Common Equity Tier-I ratio was 13.6%, up from 12.8% a year ago. The Tier-I capital ratio was 15.4% compared with the previous year’s 14.4%.Our Take on Bank of MontrealBank of Montreal’s focus and efforts align with its organic and business restructuring strategies and are anticipated to support revenues in the upcoming period. However, elevated expenses and an uncertain macroeconomic backdrop stemming from tariffs are headwinds. Bank Of Montreal Price, Consensus and EPS Surprise Bank Of Montreal price-consensus-eps-surprise-chart | Bank Of Montreal QuoteCurrently, BMO carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Earnings Release Dates of BMO’s PeersToronto-Dominion Bank TD and Canadian Imperial Bank of Commerce CM are slated to report first-quarter fiscal 2025 results on Feb. 27.At present, CM carries a Zacks Rank #3, while TD has a Zacks Rank of 4 (Sell).Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bank Of Montreal (BMO): Free Stock Analysis Report Toronto Dominion Bank (The) (TD): Free Stock Analysis Report Canadian Imperial Bank of Commerce (CM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks