Bank Of Montreal (NYSE:BMO) Issues Quarterly Earnings Results

Bank Of Montreal (NYSE:BMO) (TSE:BMO) posted its earnings results on Wednesday. The bank reported $2.51 EPS for the quarter, topping analysts’ consensus estimates of $2.35 by $0.16, Zacks reports. The business had revenue of $7.21 billion during the quarter, compared to analyst estimates of $6.73 billion. Bank Of Montreal had a return on equity of 12.18% and a net margin of 11.76%.The company’s quarterly revenue was up 6.0% compared to the same quarter last year. During the same quarter last year, the company earned $3.04 EPS.

Here are the key takeaways from Bank Of Montreal’s conference call:

• Strong quarter with Adjusted EPS of CAD 3.48 (+15% YoY), record pre-provision, pre-tax earnings of CAD 4.1 billion and underlying ROE of 13.1% (up 180 bps), with management reaffirming a path to 15% ROE by exit-2027.
• Margin and revenue upside from deposit-mix improvements and ladder reinvestments lifted NII ex-markets and NIM (233 bps, +20 bps YoY), but management expects NIM to be relatively stable near term as competitive dynamics and loan growth evolve.
• U.S. optimization is ~90% complete after roughly CAD 6 billion of loan reductions; management reports improving pipelines, better deposit mix and expects mid-single-digit loan growth in the back half of the year.
• Credit was largely in line with expectations—total PCLs declined to CAD 746 million and the performing allowance is CAD 4.6 billion (69 bps)—but pockets of consumer stress (higher delinquencies in parts of the GTA and elevated card losses in lower-income segments) warrant monitoring.

Bank Of Montreal Stock Performance

Bank Of Montreal stock traded down $3.29 during trading on Friday, reaching $145.56. The company had a trading volume of 72,887 shares, compared to its average volume of 836,542. The firm has a market capitalization of $102.80 billion, a price-to-earnings ratio of 16.89, a price-to-earnings-growth ratio of 1.03 and a beta of 0.94. The company has a current ratio of 1.00, a quick ratio of 1.00 and a debt-to-equity ratio of 0.11. The firm’s 50-day simple moving average is $137.18 and its 200 day simple moving average is $129.02. Bank Of Montreal has a 52 week low of $85.40 and a 52 week high of $149.01.

Bank Of Montreal Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, May 26th. Stockholders of record on Wednesday, April 29th will be paid a $1.67 dividend. This represents a $6.68 annualized dividend and a dividend yield of 4.6%. The ex-dividend date is Wednesday, April 29th. Bank Of Montreal’s dividend payout ratio is 59.68%.

Wall Street Analysts Forecast Growth

BMO has been the topic of several research analyst reports. Raymond James Financial upgraded shares of Bank Of Montreal from a “market perform” rating to an “outperform” rating in a research note on Friday, February 13th. Scotiabank restated a “sector perform” rating on shares of Bank Of Montreal in a research report on Friday, January 9th. Wall Street Zen raised shares of Bank Of Montreal from a “sell” rating to a “hold” rating in a research report on Sunday, February 8th. National Bank Financial reiterated a “sector perform” rating on shares of Bank Of Montreal in a research note on Wednesday. Finally, Jefferies Financial Group restated a “hold” rating on shares of Bank Of Montreal in a research note on Wednesday. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and seven have assigned a Hold rating to the company’s stock. According to MarketBeat, Bank Of Montreal presently has an average rating of “Moderate Buy” and a consensus target price of $163.00.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the company. WFA of San Diego LLC bought a new stake in Bank Of Montreal during the second quarter valued at about $28,000. Larson Financial Group LLC grew its position in shares of Bank Of Montreal by 466.7% during the third quarter. Larson Financial Group LLC now owns 238 shares of the bank’s stock worth $31,000 after purchasing an additional 196 shares in the last quarter. Swiss RE Ltd. purchased a new position in Bank Of Montreal in the 4th quarter worth approximately $38,000. Sunbelt Securities Inc. bought a new position in Bank Of Montreal in the 3rd quarter worth approximately $42,000. Finally, Headlands Technologies LLC purchased a new stake in Bank Of Montreal during the 2nd quarter valued at approximately $61,000. Institutional investors own 45.82% of the company’s stock.

Bank Of Montreal Company Profile

Bank of Montreal (NYSE:BMO), commonly known as BMO Financial Group, is one of Canada’s largest and longest-established banks. Founded in Montreal and headquartered in Montreal, Quebec, the bank provides a broad range of financial services to retail, commercial, corporate and institutional clients. BMO is publicly listed in both Canada and the United States and operates under a consolidated financial services model that integrates banking, capital markets, wealth management and asset management activities.

BMO’s core businesses include personal and commercial banking—offering checking and savings accounts, lending, mortgages, and small-business services—alongside wealth management and private banking through its asset and investment management divisions.