tiprankstipranks
Trending News
More News >
Bank Of Montreal (TSE:BMO)
TSX:BMO
Advertisement

Bank Of Montreal (BMO) AI Stock Analysis

Compare
2,212 Followers

Top Page

TSE:BMO

Bank Of Montreal

(TSX:BMO)

Select Model
Select Model
Select Model
Outperform 74 (OpenAI - 4o)
Rating:74Outperform
Price Target:
C$191.00
▲(9.73% Upside)
The Bank of Montreal's strong financial performance and positive earnings call sentiment are the most significant factors driving the score. The stock's valuation is attractive, but technical indicators suggest it may be overbought. High leverage and cash flow concerns are notable risks.
Positive Factors
Revenue Growth
Strong revenue growth indicates robust business expansion and effective market penetration, enhancing BMO's competitive position in the financial sector.
Strategic U.S. Expansion
Expanding branch network in the U.S. strengthens BMO's market presence and customer base, supporting long-term growth and revenue diversification.
Strong Earnings Growth
Record earnings growth reflects effective management strategies and operational efficiency, enhancing shareholder value and financial stability.
Negative Factors
High Leverage
Significant leverage poses risks in adverse conditions, potentially impacting BMO's financial flexibility and ability to manage economic downturns.
Declining Cash Flow
Declining cash flow growth can constrain BMO's ability to fund operations and investments, affecting long-term financial health and strategic initiatives.
Challenges in Canadian Market
Challenges in the Canadian market, including higher credit losses, may hinder BMO's profitability and growth prospects in its home market.

Bank Of Montreal (BMO) vs. iShares MSCI Canada ETF (EWC)

Bank Of Montreal Business Overview & Revenue Model

Company DescriptionBank of Montreal provides diversified financial services primarily in North America. The company's personal banking products and services include checking and savings accounts, credit cards, mortgages, and financial and investment advice services; and commercial banking products and services comprise business deposit accounts, commercial credit cards, business loans and commercial mortgages, cash management solutions, foreign exchange, specialized banking programs, treasury and payment solutions, and risk management products for small business and commercial banking customers. It also offers investment and wealth advisory services; digital investing services; financial services and solutions; and investment management, and trust and custody services. In addition, the company provides life insurance, accident and sickness insurance, and annuity products; creditor and travel insurance to bank customers; and reinsurance solutions. Further, it offers client's debt and equity capital-raising services, as well as loan origination and syndication, and treasury management; strategic advice on mergers and acquisitions, restructurings, and recapitalizations, as well as valuation and fairness opinions; and trade finance, risk mitigation, and other operating services. Additionally, the company provides research and access to markets for institutional, corporate, and retail clients; trading solutions that include debt, foreign exchange, interest rate, credit, equity, securitization and commodities; new product development and origination services, as well as risk management advice and services to hedge against fluctuations; and funding and liquidity management services to its clients. It operates through approximately 900 bank branches and 3,300 automated banking machines in Canada and the United States. Bank of Montreal was founded in 1817 and is headquartered in Montreal, Canada.
How the Company Makes MoneyBMO generates revenue primarily through interest income from loans and mortgages, fees from various banking services, and investment management fees. The main revenue streams include interest from personal banking, commercial loans, and credit cards, which are supplemented by transaction and service fees from account management and advisory services. Additionally, BMO Capital Markets contributes to revenue through underwriting, trading, and advisory services, while its Wealth Management division earns fees from asset management and financial planning. Strategic partnerships and a strong retail presence enhance customer acquisition and retention, further driving revenue growth.

Bank Of Montreal Earnings Call Summary

Earnings Call Date:Aug 26, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Dec 04, 2025
Earnings Call Sentiment Positive
The earnings call highlighted record net income and strong earnings growth, with improvements in return on equity and positive operating leverage across the bank. However, challenges remain in the Canadian market with higher provisions for credit losses and macroeconomic uncertainty. Despite these challenges, the overall sentiment is positive due to strong financial performance and strategic progress.
Q3-2025 Updates
Positive Updates
Record Net Income and Earnings Per Share Growth
Third quarter net income of $2.4 billion was the highest on record, and earnings per share increased 22% to $3.23.
Strong Pre-Provision Pretax Earnings
Pre-provision pretax earnings increased by 13% to $4 billion, with positive contributions from every operating group.
Positive Operating Leverage for Six Consecutive Quarters
The bank achieved positive operating leverage for six consecutive quarters, with an all-bank operating leverage of 4.7% year-to-date.
Improvement in Return on Equity
Return on equity improved to 12% for the quarter, driven by various strategic initiatives, including U.S. P&C improvement and capital optimization.
Strong Performance in Wealth Management
BMO Wealth Management achieved record revenue in Wealth and Asset Management, with continued growth in net new assets.
Positive U.S. P&C Results
U.S. P&C net income increased by 42%, with strong PPPT growth of 10% and positive operating leverage of 5%.
Negative Updates
Challenges in Canadian Personal and Commercial Banking
Canadian P&C net income was down 5% year-over-year, primarily due to higher provisions for credit losses.
Macroeconomic Uncertainty in Canada
Canada is experiencing a period of modest growth with some trade-related risks and geopolitical challenges impacting the economic environment.
Weakness in Canadian Retail Portfolios
Higher losses in Canadian unsecured retail portfolios were observed, driven by unemployment and insolvency trends in Canada.
Company Guidance
During the BMO Financial Group's Q3 2025 earnings call, the company reported a strong financial performance with several key metrics highlighted. Earnings per share increased by 22% to $3.23, and net income reached a record high of $2.4 billion. Pre-provision pretax earnings rose 13% to $4 billion, driven by contributions from all operating groups. The CET1 ratio stood robust at 13.5%, supporting share buybacks and client growth. Return on equity improved to 12%, and year-to-date revenue growth was 12%, with PPPT up 19% and all-bank operating leverage at 4.7%. These results were achieved amid a modest growth environment in Canada and resilience in the U.S. economy, despite higher interest rates and tariffs. BMO continues to focus on ROE rebuild strategies, capital optimization, and sustainable growth across its businesses.

Bank Of Montreal Financial Statement Overview

Summary
Bank of Montreal shows strong revenue growth and profitability with solid margins. However, high leverage and declining cash flow growth present potential risks. The company needs to focus on improving cash flow management and reducing leverage to enhance financial stability.
Income Statement
85
Very Positive
The Bank of Montreal shows strong revenue growth with a 17.84% increase in TTM, indicating robust business expansion. Gross profit margin is healthy at 39.15%, and net profit margin has improved to 11.09%, reflecting enhanced profitability. EBIT and EBITDA margins are solid, supporting operational efficiency. However, historical fluctuations in revenue growth and margins suggest potential volatility.
Balance Sheet
70
Positive
The balance sheet reveals a high debt-to-equity ratio of 4.54, indicating significant leverage, which could pose risks in adverse conditions. Return on equity is moderate at 10.13%, showing reasonable profitability from shareholders' equity. The equity ratio is relatively low, suggesting limited equity financing. Overall, the balance sheet is stable but with notable leverage concerns.
Cash Flow
60
Neutral
The cash flow statement highlights a significant decline in free cash flow growth by 74.17% in TTM, raising concerns about cash generation. The operating cash flow to net income ratio is low at 0.002, indicating potential cash flow constraints. However, the free cash flow to net income ratio remains positive at 0.24, suggesting some level of cash profitability. Overall, cash flow management needs improvement.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue78.61B78.56B29.02B26.26B26.91B22.23B
Gross Profit30.77B28.28B29.64B25.95B26.91B25.02B
EBITDA13.55B11.18B7.71B19.00B11.44B7.61B
Net Income8.72B7.32B4.42B13.54B7.75B5.10B
Balance Sheet
Total Assets1.43T1.41T1.29T1.14T988.17B949.26B
Cash, Cash Equivalents and Short-Term Investments169.21B113.53B114.31B118.21B121.97B95.24B
Total Debt394.00B262.44B248.74B222.64B189.81B187.01B
Total Liabilities1.34T1.33T1.22T1.07T930.65B892.67B
Stockholders Equity86.72B84.25B77.01B71.04B57.52B56.59B
Cash Flow
Free Cash Flow518.00M27.47B19.59B3.51B43.07B49.80B
Operating Cash Flow2.18B29.03B21.27B4.96B44.05B50.84B
Investing Cash Flow-5.94B-24.53B-21.16B-29.47B-299.00M-31.97B
Financing Cash Flow-12.02B-17.41B268.00M15.98B47.12B-10.30B

Bank Of Montreal Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price174.07
Price Trends
50DMA
174.39
Positive
100DMA
162.83
Positive
200DMA
149.90
Positive
Market Momentum
MACD
0.34
Positive
RSI
47.19
Neutral
STOCH
42.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BMO, the sentiment is Neutral. The current price of 174.07 is below the 20-day moving average (MA) of 177.85, below the 50-day MA of 174.39, and above the 200-day MA of 149.90, indicating a neutral trend. The MACD of 0.34 indicates Positive momentum. The RSI at 47.19 is Neutral, neither overbought nor oversold. The STOCH value of 42.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:BMO.

Bank Of Montreal Peers Comparison

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$107.20B14.0513.40%3.36%-0.39%20.28%
$59.22B14.6713.25%2.99%9.25%0.34%
$287.39B15.6814.60%2.95%3.48%17.81%
$194.67B9.8617.36%3.66%7.92%175.59%
$125.86B15.5310.20%3.67%1.78%32.32%
$113.19B17.118.64%5.60%-2.54%-6.66%
$18.00B11.429.92%3.81%9.73%1.22%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:BMO
Bank Of Montreal
174.07
52.73
43.46%
TSE:BNS
Bank Of Nova Scotia
91.10
22.63
33.05%
TSE:CM
Canadian Bank of Commerce
115.25
30.92
36.67%
TSE:RY
Royal Bank Of Canada
204.12
39.60
24.07%
TSE:TD
Toronto Dominion Bank
114.03
40.75
55.61%
TSE:NA
National Bank of Canada
155.75
28.11
22.02%

Bank Of Montreal Corporate Events

Business Operations and StrategyPrivate Placements and Financing
Bank of Montreal Issues EUR 1 Billion Callable Notes
Positive
Oct 28, 2025

Bank of Montreal has announced the issuance of EUR 1 billion Callable Floating Rate Senior Notes due in October 2029 as part of its extensive USD 40 billion Note Issuance Programme. This move is aligned with the bank’s strategy to strengthen its financial position and provide attractive investment opportunities, potentially impacting its market positioning and offering benefits to stakeholders.

Private Placements and Financing
Bank of Montreal Announces Pre-Stabilisation for EUR 1 Billion Notes
Neutral
Oct 24, 2025

Bank of Montreal’s London Branch has announced a pre-stabilisation notice for the issuance of EUR 1 billion Callable Floating Rate Senior Notes due October 2029. The stabilisation period for these securities is expected to commence on October 22, 2025, and may last up to 30 days post-issuance. The stabilisation manager, Bank of Montreal, London Branch, may engage in over-allotment or market-supporting transactions to maintain the securities’ market price. However, such actions are not guaranteed and will comply with applicable laws.

Private Placements and Financing
Bank of Montreal Announces Pre-Stabilisation for KFW Senior Notes
Neutral
Oct 24, 2025

Bank of Montreal Europe plc has announced a pre-stabilisation notice for the offer of GBP 200,000,000 0.125% Senior Notes due 30 December 2026, issued by Kreditanstalt für Wiederaufbau (KFW). The stabilisation period is expected to start on 23 October 2025 and may last up to 30 days after the proposed issue date. The Bank of Montreal Europe plc, acting as the Stabilising Manager, may over-allot the securities or engage in transactions to support the market price, although there is no guarantee that such actions will be taken. This announcement is intended for qualified investors and high net worth individuals in the UK and EEA, and does not constitute an offer to sell securities in the United States.

Private Placements and FinancingRegulatory Filings and Compliance
Bank of Montreal Announces No Stabilisation in Recent Note Offering
Neutral
Oct 15, 2025

Bank of Montreal’s London Branch announced that no stabilisation actions were taken in relation to the offering of GBP 600,000,000 4.250% Senior Notes due in 2030 by PSP Capital Inc. This announcement clarifies the bank’s position in the transaction, ensuring transparency for stakeholders and maintaining compliance with the Financial Conduct Authority’s regulations.

Private Placements and Financing
Bank of Montreal Announces Pre-Stabilisation for Asian Development Bank Notes
Neutral
Oct 8, 2025

The Bank of Montreal, through its London Branch, announced a pre-stabilisation notice for the offering of CAD 750,000,000 2.600% notes due in 2028 issued by the Asian Development Bank. The stabilisation period is set to begin on October 10, 2025, and may last up to 30 days. The Bank of Montreal, acting as the Stabilising Manager, may engage in transactions to support the market price of the securities, although there is no guarantee that such actions will be taken. This announcement is directed at qualified investors and is not an offer for sale in the United States.

Business Operations and StrategyExecutive/Board Changes
BMO Financial Group Announces CFO Transition
Neutral
Sep 17, 2025

BMO Financial Group has announced the retirement of its Chief Financial Officer, Tayfun Tuzun, effective early 2026, and the appointment of Rahul Nalgirkar as his successor. Nalgirkar, who joined BMO in 2022, will assume the CFO role on January 1, 2026, after a transition period as Deputy CFO. This leadership change is significant as BMO continues to strengthen its position as one of North America’s largest banks, with a focus on strategic growth and operational efficiency.

The most recent analyst rating on (TSE:BMO) stock is a Buy with a C$180.00 price target. To see the full list of analyst forecasts on Bank Of Montreal stock, see the TSE:BMO Stock Forecast page.

Private Placements and Financing
Bank of Montreal Announces Pre-Stabilisation for GBP 600 Million Note Offering
Neutral
Sep 16, 2025

Bank of Montreal’s London Branch has announced a pre-stabilisation notice for the offering of GBP 600,000,000 4.250% Senior Notes due in October 2030, issued by PSP Capital Inc. The stabilisation period is expected to start on September 15, 2025, and may last up to 30 days. The Bank of Montreal will act as the Stabilising Manager, with the possibility of over-allotting the securities to support market prices. This move is aimed at ensuring price stability in the market, although there is no guarantee that stabilisation actions will be undertaken.

Business Operations and StrategyPrivate Placements and Financing
Bank of Montreal Launches $50 Billion Covered Bond Program
Positive
Sep 11, 2025

Bank of Montreal has announced the publication of a prospectus for its $50 billion Global Registered Covered Bond Program, which has been approved by the Financial Conduct Authority. This program, guaranteed by BMO Covered Bond Guarantor Limited Partnership, signifies a strategic move to strengthen the bank’s funding capabilities and enhance its financial stability, potentially impacting its market positioning and stakeholder interests.

Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Bank of Montreal Publishes $50 Billion Covered Bond Program Prospectus
Positive
Sep 11, 2025

Bank of Montreal has announced the publication of a prospectus supplement for its $50 billion Global Registered Covered Bond Program, which has been approved by the Financial Conduct Authority. This move underscores the bank’s commitment to strengthening its financial instruments and enhancing its market position, potentially impacting stakeholders by providing more secure investment opportunities.

Business Operations and StrategyPrivate Placements and Financing
Bank of Montreal Issues GBP 500 Million Callable Notes
Positive
Sep 5, 2025

Bank of Montreal has announced the issuance of GBP 500,000,000 Callable Fixed to Floating Rate Senior Notes due October 2031 as part of its extensive U.S.$40,000,000,000 Note Issuance Programme. This strategic move is expected to enhance the bank’s financial flexibility and strengthen its market position, reflecting its commitment to expanding its financial offerings and maintaining robust stakeholder relations.

Business Operations and StrategyStock Buyback
Bank of Montreal Secures Approval for Share Repurchase Program
Positive
Sep 3, 2025

Bank of Montreal has received regulatory approvals for its Normal Course Issuer Bid, allowing the bank to repurchase its own shares. This move is likely to impact the company’s financial strategy and shareholder value, potentially enhancing its market position and signaling confidence in its financial health.

Bank of Montreal Reports Record Earnings Amid Challenges
Sep 1, 2025

The recent earnings call for the Bank of Montreal (BMO) painted a largely positive picture of the company’s financial health and strategic progress. The bank reported record net income and strong earnings growth, despite facing challenges in the Canadian market, such as higher provisions for credit losses and macroeconomic uncertainties. Overall, the sentiment was optimistic, buoyed by the bank’s robust financial performance and strategic advancements.

BMO Reports Strong Q3 2025 Earnings Growth
Aug 27, 2025

Bank of Montreal (BMO) is a leading financial services provider in North America, operating in the banking and financial services industry with a focus on personal and commercial banking, wealth management, and investment banking. The company is known for its strong presence in both Canada and the United States.

Business Operations and StrategyStock BuybackFinancial DisclosuresM&A Transactions
BMO Financial Group Reports Strong Q3 2025 Results and Strategic Growth Initiatives
Positive
Aug 26, 2025

BMO Financial Group reported strong financial results for the third quarter of 2025, with a 25% increase in reported net income and a 26% rise in earnings per share compared to the previous year. The company continues to focus on sustainable growth through strategic acquisitions, such as the recent agreement to acquire Burgundy Asset Management Ltd., and is enhancing its digital and AI capabilities to improve client experiences. Additionally, BMO announced plans to increase its share repurchase program, reflecting confidence in its financial position and commitment to returning capital to shareholders.

The most recent analyst rating on (TSE:BMO) stock is a Buy with a C$170.00 price target. To see the full list of analyst forecasts on Bank Of Montreal stock, see the TSE:BMO Stock Forecast page.

Dividends
BMO Declares Steady Quarterly Dividends for Q4 2025
Neutral
Aug 26, 2025

Bank of Montreal announced that its Board of Directors has declared a quarterly dividend of $1.63 per common share for the fourth quarter of fiscal year 2025, maintaining the same rate as the previous quarter. Additionally, dividends were declared for various series of Class B Preferred Shares, with all dividends designated as ‘eligible’ for Canadian tax purposes. Shareholders have the option to reinvest their dividends in common shares through the Bank’s Dividend Reinvestment and Share Purchase Plan.

The most recent analyst rating on (TSE:BMO) stock is a Buy with a C$170.00 price target. To see the full list of analyst forecasts on Bank Of Montreal stock, see the TSE:BMO Stock Forecast page.

Business Operations and StrategyStock Buyback
BMO to Initiate New Share Buyback Program
Positive
Aug 26, 2025

Bank of Montreal announced its plan to cancel its existing normal course issuer bid and establish a new one to purchase up to 30 million of its common shares, subject to regulatory approval. This move is intended to provide the bank with greater flexibility in managing its capital position, reflecting its proactive approach to capital management amidst changing market conditions.

The most recent analyst rating on (TSE:BMO) stock is a Buy with a C$170.00 price target. To see the full list of analyst forecasts on Bank Of Montreal stock, see the TSE:BMO Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 04, 2025