Bank of Montreal BMO Q2 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Fri, May 29, 2026 astatine 9:32 AM CDT 49 min read

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DATE

Wednesday, May 27, 2026 astatine 8:00 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Darryl White

• Chief Financial Officer — Rahul Nalgirkar

• Chief Risk Officer — Piyush Agrawal

• Group Head, U.S. Personal and Business Banking — Aron Levine

• Head, Canadian Personal and Commercial Banking — Mathew Mehrotra

• Group Head, Capital Markets — Alan Tannenbaum

• Head, Canadian Commercial Banking — Sharon Haward-Laird

• Head, Investor Relations — Christine Viau

Full Conference Call Transcript

Darryl White: Thank you, Christine, and bully morning, everyone. At our March Investor Day, we laid retired a wide execution focused program to elevate returns and accelerate growth. Our 2nd 4th results proceed to show meaningful advancement and momentum against these commitments. We erstwhile again strengthened instrumentality connected equity and delivered beardown EPS growth, driven by our absorption connected deepening lawsuit relationships, innovating to thrust concern worth and optimizing for performance. Adjusted EPS was $3.67, up 40% from past twelvemonth with pre-provision pretax net of $4.4 billion, up 16% and grounds nett income of $2.7 billion, driven by robust interest gross crossed Capital Markets, Wealth Management and Treasury and Payment Solutions. Operating leverage was beardown astatine 4.1%.

Credit remains good managed and successful enactment with our expectations with PCL unchangeable from past quarter. We're good reserved with performing indebtedness sum astatine 69 ground points. Our CET1 ratio is beardown astatine 13% and does not see the pro forma interaction of the merchantability of the Transportation and vendor concern businesses, which we expect volition adhd 28 ground points. This provides america with ongoing flexibility to enactment maturation and instrumentality superior to our shareholders. We bought backmost 6 cardinal shares this 4th and announced a dividend summation of 5% to $1.71. At Investor Day, we laid retired a wide program to present sustainably higher ROE and net growth. This quarter's results reenforce that trajectory.

Building connected peer-leading show successful 2025, wherever we had #1 ROE and #1 EPS growth, we continued that momentum successful Q1 and again this quarter, with Q2 ROE up 370 ground points from a twelvemonth agone to 13.5% and EPS up 40%. Year-to-date, underlying ROE is up 200 ground points and EPS is up 30%. ROTCE strengthened to 17.6%, a measurement that underscores the spot of our halfway franchise and our quality to make top-tier returns connected superior deployed. Our advancement has been driven by halfway operating performance, the spot of our diversified businesses and our subject astir outgo management, hazard optimization and superior allocation.