Bank Of Montreal (NYSE:BMO) Announces Earnings Results

Bank Of Montreal (NYSE:BMO) (TSE:BMO) posted its quarterly earnings data on Wednesday. The bank reported $3.67 EPS for the quarter, beating the consensus estimate of $2.54 by $1.13, Briefing.com reports. Bank Of Montreal had a return on equity of 12.16% and a net margin of 11.76%.The company’s revenue for the quarter was up 10.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $2.62 earnings per share.

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

• BMO reported a very strong quarter, with adjusted EPS up 40% year over year to CAD 3.67 and record net income of CAD 2.7 billion, supported by broad-based revenue growth and strong operating leverage.
• The bank said it made meaningful progress toward its 15% ROE target, with adjusted ROE rising to 13.5% and ROTCE reaching 17.6%, while management emphasized that momentum is building across the franchise.
• Capital and shareholder returns remained strong: BMO ended the quarter with a 13% CET1 ratio, repurchased six million shares, and raised its dividend by 5% to CAD 1.71. Management also highlighted the announced sale of transportation and vendor finance as accretive to capital and ROE.
• Business momentum was broad-based, including stronger U.S. banking loan growth, record wealth management earnings, and solid capital markets results. Management said the U.S. optimization program is effectively complete and that it sees an inflection point for profitable growth.
• Credit trends remain mixed, with overall PCL stable quarter over quarter but Canadian consumer delinquencies still rising amid elevated insolvencies and unemployment. Management said it expects impaired provisions to remain in the mid-40s basis point range and sees continued pressure in unsecured credit.

Bank Of Montreal Stock Performance

Bank Of Montreal stock opened at $162.12 on Wednesday. The firm has a market capitalization of $113.63 billion, a PE ratio of 18.83, a price-to-earnings-growth ratio of 0.91 and a beta of 0.94. Bank Of Montreal has a one year low of $104.08 and a one year high of $163.12. The stock’s 50 day moving average price is $146.69 and its 200 day moving average price is $138.45. The company has a debt-to-equity ratio of 0.11, a quick ratio of 1.02 and a current ratio of 1.02.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently commented on the company. Barclays lowered Bank Of Montreal from an “equal weight” rating to an “underweight” rating in a research note on Friday, March 20th. TD Securities upgraded Bank Of Montreal from a “hold” rating to a “buy” rating in a research report on Tuesday, January 27th. Weiss Ratings reiterated a “buy (b)” rating on shares of Bank Of Montreal in a report on Friday, April 17th. Scotiabank reaffirmed a “sector perform” rating on shares of Bank Of Montreal in a research note on Monday, May 4th. Finally, National Bank Financial restated a “sector perform” rating on shares of Bank Of Montreal in a report on Wednesday, February 25th. One investment analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and a consensus target price of $163.00.

Institutional Investors Weigh In On Bank Of Montreal

A number of large investors have recently added to or reduced their stakes in the company. Arrowstreet Capital Limited Partnership acquired a new stake in shares of Bank Of Montreal during the second quarter valued at about $1,018,000. Mercer Global Advisors Inc. ADV grew its position in shares of Bank Of Montreal by 10.7% in the 4th quarter. Mercer Global Advisors Inc. ADV now owns 7,816 shares of the bank’s stock worth $1,014,000 after acquiring an additional 754 shares in the last quarter. Ieq Capital LLC increased its holdings in shares of Bank Of Montreal by 6.1% in the 4th quarter. Ieq Capital LLC now owns 6,864 shares of the bank’s stock valued at $891,000 after acquiring an additional 397 shares during the last quarter. Williamson Legacy Group LLC bought a new stake in shares of Bank Of Montreal in the 3rd quarter valued at approximately $804,000. Finally, Xponance LLC bought a new position in Bank Of Montreal during the fourth quarter worth $584,000. 45.82% of the stock is owned by institutional investors and hedge funds.

About Bank Of Montreal

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.