실적분석 2026년 8월 25일

Bank of Montreal ($BMO) Fiscal 2026 Third-Quarter Earnings Analysis — Adjusted EPS and Revenue Both Beat, Flat in Extended Trading

Earnings Scorecard

Revenue: CAD 9.896 billion (+10% year over year, vs. CAD 9.78 billion estimate) ✅ Beat

EPS: $3.96 adjusted (vs. $3.70 estimate) ✅ Beat — $2.38 reported (reflecting the goodwill-related charge)

Guidance: Not provided — no numerical outlook for the next quarter or full year. Quarterly common-share dividend of $1.71 per share (unchanged from the prior quarter)

Share price reaction: +0.06% to $172.45 in extended trading — as of 20:39 Korea time on Aug. 25

The Highlights

Adjusted EPS surprise: Adjusted EPS of $3.96 topped the $3.70 estimate

Revenue beat on both fronts: Revenue of CAD 9.896 billion, up 10% year over year

Capital Markets earnings surge: Reported net income in Capital Markets of CAD 645 million, up 46% year over year

Every operating segment grew adjusted earnings, while provisions for credit losses came in at CAD 722 million, down from CAD 797 million a year earlier. Canadian Personal & Commercial, U.S. Banking, and Wealth Management all improved in tandem, giving the underlying franchise a balanced footing.

The Lows

One-time goodwill-related charge: An after-tax charge of CAD 962 million tied to the business divestiture weighed on reported results

Sharp drop in reported net income: Total net income of CAD 1.750 billion (−25%); net income attributable to common shareholders of CAD 1.667 billion

Capital ratio decline vs. prior year: Common Equity Tier 1 (CET1) ratio of 13.0%, down from 13.5% a year ago

The wide gap between reported and adjusted figures makes the quarter look weaker than it is if the non-recurring charge is not stripped out. Insurance net income fell 8% against a year-ago base inflated by a one-time divestiture gain, and the absolute level of provisions remains non-trivial.

What Management Said

Management emphasized disciplined execution of the March Investor Day commitments around boosting return on equity and accelerating growth, pairing those with continued dividend and buyback returns alongside a robust CET1 ratio. The market read the adjusted beat as evidence of solid underlying performance, but the share price reaction was limited because the goodwill-related charge stemming from the already-announced divestiture had been largely priced in.

Market Reaction and What to Watch Next

The fact that extended-hours trading barely moved despite an adjusted earnings beat and lower credit costs suggests the goodwill charge that depressed reported results was already largely reflected when the divestiture was announced.

Timing of the completion of the transportation and vendor finance divestitures and the impact of capital redeployment on the CET1 ratio

Whether provisions for credit losses decline further in the next quarter or stabilize at the current absolute level

Pace of approval and execution of the new share repurchase authorization of up to 25 million shares