BMO Flexes Financial Muscle: Q2 Profits Surge, Dividends Climb as Traditional Banking Shows Life

Another quarter, another display of old-school banking resilience—BMO just posted fatter profits and juicier dividends. Who said legacy finance was dead?

Strong capital metrics let the Canadian giant play Santa with shareholder payouts. Because nothing says ’stability’ like a dividend hike while crypto bros ride the volatility rollercoaster.

Let’s see how long the good times roll before the next ’unforeseen macroeconomic headwind’ hits the earnings call.

TLDR

• Q2 2025 net income reached $1.96 billion, up from $1.87 billion last year
• Adjusted EPS was $2.62, surpassing analyst estimates of $2.53
• Dividend raised by 5% to $1.63 per share
• Provisions for impaired loans dropped for the second consecutive quarter
• Strong capital supports shareholder returns and growth investments

Bank of Montreal (BMO.TO) stock was trading at CAD 147.77, up 2.01%, as of 12:06 PM EDT on May 28, 2025, following the release of its second-quarter 2025 earnings report.

Bank of Montreal (BMO.TO)

The bank reported net income of CAD 1.96 billion for the quarter ending April 30, 2025, compared to CAD 1.87 billion a year earlier.

Revenue and Profit Beat Expectations

BMO delivered revenue of CAD 8.68 billion in Q2 2025, up from CAD 7.97 billion in the same quarter last year. Reported earnings per share (EPS) ROSE to CAD 2.50 from CAD 2.36, while adjusted EPS climbed to CAD 2.62, beating the consensus estimate of CAD 2.53. Adjusted net income was CAD 2.05 billion, slightly ahead of CAD 2.03 billion last year.

BMO Financial Group, $BMO, Q2-25. Results:

📊 Adj. EPS: $1.91 USD (CAD$2.62) 🟢
💰 Revenue: $6.32B USD (CAD$8.68B) 🔴
🔎 Strong revenue and pre-provision earnings growth across all operating groups, with capital strength supporting higher dividends and share buybacks. pic.twitter.com/bV3N0FHUeI

— gtG (good to Great) (@g00dtoGreat) May 28, 2025

CEO Darryl WHITE highlighted strong performance across operating groups and positive operating leverage. “We’re executing against our plan to rebuild return on equity, optimize the balance sheet, and invest for growth,” he said.

Dividend Boost and Share Buybacks

BMO announced a 5% increase in its third-quarter dividend, raising it to CAD 1.63 per common share, up CAD 0.08 from a year ago and CAD 0.04 from the prior quarter. This equates to an annual dividend of CAD 6.52 per share. During Q2, the bank repurchased 7 million common shares under its normal course issuer bid, returning capital to shareholders.

Credit Provisions and Segment Performance

Provisions for credit losses rose to CAD 1.05 billion from CAD 705 million a year earlier. However, provisions on impaired loans decreased for the second straight quarter, coming in at CAD 765 million, down sharply from CAD 1.11 billion two quarters ago.

The Canadian banking segment reported net income of CAD 782 million, a 10% decline year over year. In contrast, U.S. banking generated CAD 546 million in profit, slightly up by CAD 3 million. Wealth management posted a 13% rise in net income to CAD 361 million, while capital markets saw a 6% drop to CAD 431 million.

Performance Against the Market

BMO’s year-to-date return stood at 8.83%, outpacing the S&P/TSX Composite Index’s 6.72%. Over one year, BMO delivered an 18.40% return, narrowly ahead of the index’s 18.01%. Over five years, BMO’s stock surged 166.78%, dwarfing the index’s 72.15% gain.

Strong Capital Supports Growth

BMO’s Common Equity Tier 1 (CET1) ratio strengthened to 13.5%, up from 13.1% last year, reflecting a robust capital position. This allows the bank to withstand varying economic conditions while continuing to support clients and communities.