Bank of Montreal (NYSE:BMO) on Wednesday reported net income of $2.489 billion for its first quarter ended January 31, 2026, an increase of 16% from $2.138 billion in the prior year.
The Toronto-based bank said it had earnings of $3.39 per share, up 20% from $2.83.
When adjusted for items including severance costs and acquisition-related effects, net income was $2.551 billion and earnings per share were $3.48, up 15% from the prior year's adjusted $3.04 and surpassing analyst consensus estimates.
Provision for credit losses declined to $746 million from $1.011 billion in the prior-year quarter, reflecting improved credit quality trends.
The Common Equity Tier 1 (CET1) ratio stood at 13.1%, compared with 13.6% at the end of the prior year.
Results included $147 million ($202 million pre-tax) in severance costs tied to operational efficiency initiatives across segments.
The bank also completed the acquisition of Burgundy Asset Management on November 1, 2025, with its results consolidated in the Wealth Management segment.
Meanwhile, the board declared a quarterly dividend of $1.67 per common share.
During the quarter, BMO purchased and canceled 6 million common shares under its buyback program.