Bank of Montreal (NYSE:BMO) reported a strong third-quarter performance, achieving a 14% return on equity, up from 9.8% at the end of 2024. The bank’s revenue increased 11% year over year, while pre-provision, pre-tax income rose to a record C$4.5 billion, with all four business units contributing to the growth.
Loan demand has surged, with closings this year nearly double those of the previous year, indicating solid client activity despite ongoing uncertainties related to Canada-U.S. trade negotiations. The bank’s U.S. banking segment generated a 9.8% return on equity, reflecting a 90 basis point year-over-year improvement.
BMO aims for a 15% return on equity and an 18% return on tangible common equity by the end of 2027, focusing on core operational improvements, including revenue growth in personal and commercial banking and capital markets.
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