Bank of Montreal reports 34% profit surge in Q2 2026

Bank of Montreal (NYSE:BMO) has released its financial results for the second quarter of 2026, posting a reported net income of $2.63 billion.

This represents a 34% increase year-over-year, alongside reported earnings per share of $3.53, up 41% from the prior year.

On an adjusted basis, net income reached $2.73 billion, with adjusted earnings per share of $3.67, both reflecting growth in the range of 34% to 40%.

The substantial earnings boost was primarily supported by a notable decline in the provision for credit losses, which fell to $739 million from $1.05 billion during the same period last year.

The bank’s broader profitability metrics also demonstrated solid improvement, with reported return on equity rising to 13%.

Maintaining a sturdy capital position, Bank of Montreal reported a Common Equity Tier 1 capital ratio of 13%.

Highlighting institutional confidence in ongoing capital generation and shareholder returns, the board of directors raised the quarterly common share dividend to $1.71 and executed the repurchase of 6 million shares during the quarter.

In tandem with its earnings release, Bank of Montreal announced a definitive agreement to sell its Transportation and Vendor Finance businesses to alternative investment firm Stonepeak.

The transaction aligns with the bank's strategy to optimize its balance sheet and direct resources toward core banking operations.

Bank of Montreal anticipates recording an approximately $1.1 billion pre-tax charge upon the closing of the deal.