Bank of Montreal (BMO)
Market Price (3/30/2026): $132.85 | Market Cap: $94.1 BilSector: Financials | Industry: Diversified Banks
Bank of Montreal (BMO)
Market Price (3/30/2026): $132.85Market Cap: $94.1 BilSector: FinancialsIndustry: Diversified Banks
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 9.7%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 5.9%, FCF Yield is 5.8% | Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 101% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 20%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 15%, CFO LTM is 7.2 Bil, FCF LTM is 5.4 Bil | Key risksBMO key risks include [1] deteriorating credit quality and defaults within its U.S. Show more. |
| Low stock price volatilityVol 12M is 20% | |
| Capital ratio is >2x the minimum of 6%Tier 1 Capital / Risk Wtd Assets RatioTier 1 Capital / Risk-Weighted Assets is a common measure of financial strength for a bank. It reflects how much equity there is relative to assets where assets are weighted based on riskiness. Low ratios indicate the bank is highly vulnerable to even small changes in the value of their risk assets. is 14% | |
| Megatrend and thematic driversMegatrends include Fintech & Digital Payments, AI in Financial Services, and Sustainable Finance. Themes include Digital Payments, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 9.7%, ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is 5.9%, FCF Yield is 5.8% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 20%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 15%, CFO LTM is 7.2 Bil, FCF LTM is 5.4 Bil |
| Low stock price volatilityVol 12M is 20% |
| Capital ratio is >2x the minimum of 6%Tier 1 Capital / Risk Wtd Assets RatioTier 1 Capital / Risk-Weighted Assets is a common measure of financial strength for a bank. It reflects how much equity there is relative to assets where assets are weighted based on riskiness. Low ratios indicate the bank is highly vulnerable to even small changes in the value of their risk assets. is 14% |
| Megatrend and thematic driversMegatrends include Fintech & Digital Payments, AI in Financial Services, and Sustainable Finance. Themes include Digital Payments, Show more. |
| Debt is significantNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is 101% |
| Key risksBMO key risks include [1] deteriorating credit quality and defaults within its U.S. Show more. |
Qualitative Assessment
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Bank of Montreal (BMO) stock has gained about 5% since 11/30/2025 because of the following key factors:
1. Bank of Montreal reported strong financial results, consistently exceeding analyst expectations for both its fiscal fourth quarter of 2025 and first quarter of 2026. In its Q4 2025 results, announced on December 4, 2025, adjusted earnings per share (EPS) surged 73% year-over-year to $3.28, surpassing analyst consensus estimates of $2.16 by $0.20 per share, with revenue exceeding expectations by 5.24%. Building on this momentum, the bank's Q1 2026 results, released on February 25, 2026, showed adjusted EPS of $3.48, a 15% increase year-over-year, significantly beating analyst projections of $2.34. The first quarter also saw record revenue across all operating segments and a robust adjusted Return on Equity (ROE) of 13.1%.
2. The company enhanced shareholder returns by increasing its quarterly dividend. Concurrent with its strong Q4 2025 earnings announcement on December 4, 2025, Bank of Montreal declared a quarterly dividend increase to $1.67 per share, representing a 5% raise over the previous year and an annualized dividend of $6.68. The Q2 2026 dividend was maintained at $1.67 per common share, consistent with the prior quarter, which was also an increase of 5% from the prior year.
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1. Bank of Montreal reported strong financial results, consistently exceeding analyst expectations for both its fiscal fourth quarter of 2025 and first quarter of 2026. In its Q4 2025 results, announced on December 4, 2025, adjusted earnings per share (EPS) surged 73% year-over-year to $3.28, surpassing analyst consensus estimates of $2.16 by $0.20 per share, with revenue exceeding expectations by 5.24%. Building on this momentum, the bank's Q1 2026 results, released on February 25, 2026, showed adjusted EPS of $3.48, a 15% increase year-over-year, significantly beating analyst projections of $2.34. The first quarter also saw record revenue across all operating segments and a robust adjusted Return on Equity (ROE) of 13.1%.
2. The company enhanced shareholder returns by increasing its quarterly dividend. Concurrent with its strong Q4 2025 earnings announcement on December 4, 2025, Bank of Montreal declared a quarterly dividend increase to $1.67 per share, representing a 5% raise over the previous year and an annualized dividend of $6.68. The Q2 2026 dividend was maintained at $1.67 per common share, consistent with the prior quarter, which was also an increase of 5% from the prior year.
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Stock Movement Drivers
Fundamental Drivers
The 5.4% change in BMO stock from 11/30/2025 to 3/29/2026 was primarily driven by a 4.3% change in the company's Total Revenues ($ Mil).| (LTM values as of) | 11302025 | 3292026 | Change |
|---|---|---|---|
| Stock Price ($) | 125.03 | 131.76 | 5.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 35,159 | 36,681 | 4.3% |
| Net Income Margin (%) | 24.8% | 24.7% | -0.4% |
| P/E Multiple | 10.3 | 10.3 | -0.2% |
| Shares Outstanding (Mil) | 720 | 708 | 1.6% |
| Cumulative Contribution | 5.4% |
Market Drivers
11/30/2025 to 3/29/2026| Return | Correlation | |
|---|---|---|
| BMO | 5.4% | |
| Market (SPY) | -5.3% | 66.0% |
| Sector (XLF) | -10.0% | 57.9% |
Fundamental Drivers
The 10.9% change in BMO stock from 8/31/2025 to 3/29/2026 was primarily driven by a 5.0% change in the company's P/E Multiple.| (LTM values as of) | 8312025 | 3292026 | Change |
|---|---|---|---|
| Stock Price ($) | 118.83 | 131.76 | 10.9% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 35,159 | 36,681 | 4.3% |
| Net Income Margin (%) | 24.8% | 24.7% | -0.4% |
| P/E Multiple | 9.8 | 10.3 | 5.0% |
| Shares Outstanding (Mil) | 720 | 708 | 1.6% |
| Cumulative Contribution | 10.9% |
Market Drivers
8/31/2025 to 3/29/2026| Return | Correlation | |
|---|---|---|
| BMO | 10.9% | |
| Market (SPY) | 0.6% | 61.4% |
| Sector (XLF) | -10.8% | 55.5% |
Fundamental Drivers
The 33.5% change in BMO stock from 2/28/2025 to 3/29/2026 was primarily driven by a 16.7% change in the company's P/E Multiple.| (LTM values as of) | 2282025 | 3292026 | Change |
|---|---|---|---|
| Stock Price ($) | 98.72 | 131.76 | 33.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 33,610 | 36,681 | 9.1% |
| Net Income Margin (%) | 24.3% | 24.7% | 1.8% |
| P/E Multiple | 8.8 | 10.3 | 16.7% |
| Shares Outstanding (Mil) | 730 | 708 | 3.0% |
| Cumulative Contribution | 33.5% |
Market Drivers
2/28/2025 to 3/29/2026| Return | Correlation | |
|---|---|---|
| BMO | 33.5% | |
| Market (SPY) | 9.8% | 65.4% |
| Sector (XLF) | -7.1% | 66.8% |
Fundamental Drivers
The 59.6% change in BMO stock from 2/28/2023 to 3/29/2026 was primarily driven by a 145.6% change in the company's P/E Multiple.| (LTM values as of) | 2282023 | 3292026 | Change |
|---|---|---|---|
| Stock Price ($) | 82.54 | 131.76 | 59.6% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 26,259 | 36,681 | 39.7% |
| Net Income Margin (%) | 51.6% | 24.7% | -52.1% |
| P/E Multiple | 4.2 | 10.3 | 145.6% |
| Shares Outstanding (Mil) | 688 | 708 | -2.9% |
| Cumulative Contribution | 59.6% |
Market Drivers
2/28/2023 to 3/29/2026| Return | Correlation | |
|---|---|---|
| BMO | 59.6% | |
| Market (SPY) | 69.4% | 56.7% |
| Sector (XLF) | 40.5% | 61.2% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| BMO Return | 47% | -12% | 15% | 3% | 40% | 3% | 118% |
| Peers Return | 37% | -18% | 16% | 22% | 53% | -3% | 136% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | -5% | 72% |
Monthly Win Rates [3] | |||||||
| BMO Win Rate | 67% | 58% | 50% | 50% | 83% | 67% | |
| Peers Win Rate | 62% | 43% | 53% | 57% | 80% | 47% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 33% | |
Max Drawdowns [4] | |||||||
| BMO Max Drawdown | -1% | -20% | -14% | -17% | -9% | 0% | |
| Peers Max Drawdown | -1% | -27% | -11% | -7% | -10% | -5% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -5% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: RY, TD, BNS, CM, JPM.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 3/27/2026 (YTD)
How Low Can It Go
| Event | BMO | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -39.3% | -25.4% |
| % Gain to Breakeven | 64.8% | 34.1% |
| Time to Breakeven | 677 days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -51.5% | -33.9% |
| % Gain to Breakeven | 106.1% | 51.3% |
| Time to Breakeven | 333 days | 148 days |
| 2018 Correction | ||
| % Loss | -24.2% | -19.8% |
| % Gain to Breakeven | 32.0% | 24.7% |
| Time to Breakeven | 793 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -70.9% | -56.8% |
| % Gain to Breakeven | 243.3% | 131.3% |
| Time to Breakeven | 1,681 days | 1,480 days |
Compare to RY, TD, BNS, CM, JPM
In The Past
Bank of Montreal's stock fell -39.3% during the 2022 Inflation Shock from a high on 3/22/2022. A -39.3% loss requires a 64.8% gain to breakeven.
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About Bank of Montreal (BMO)
Bank 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.
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Here are 1-3 brief analogies for Bank of Montreal:
- Like a Canadian version of JPMorgan Chase.
- Similar to Bank of America, offering a full range of banking, wealth, and investment services.
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- Personal Banking Products: Offers checking and savings accounts, credit cards, and mortgages for individual customers.
- Commercial Banking Services: Provides business deposit accounts, loans, commercial mortgages, and cash management solutions for businesses.
- Investment & Wealth Management Services: Includes investment and wealth advisory, digital investing, and trust and custody services.
- Insurance Products: Sells life insurance, accident and sickness insurance, annuity products, and creditor and travel insurance.
- Debt & Equity Capital-Raising Services: Assists clients with debt and equity capital-raising, loan origination, and syndication.
- Strategic Advisory Services: Offers advice on mergers and acquisitions, restructurings, and recapitalizations.
- Trading Solutions: Provides trading services across debt, foreign exchange, interest rates, equity, and commodities markets.
- Risk Management Services: Delivers advice and products to help clients hedge against market fluctuations.
- Funding & Liquidity Management Services: Offers services to manage clients' funding and liquidity needs.
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Bank of Montreal serves a diverse customer base across various segments of the financial services industry. Given its broad offerings in personal banking, commercial banking, wealth management, and capital markets, it serves a multitude of customers rather than a few specific major companies.
The company primarily serves the following categories of customers:
- Individuals (Personal Banking Clients): This category includes everyday consumers who utilize checking and savings accounts, credit cards, mortgages, personal loans, investment advice, digital investing services, and insurance products.
- Small Business and Commercial Clients: This segment comprises a wide range of businesses, from small enterprises to larger commercial entities. They access services such as business deposit accounts, commercial credit cards, business loans, commercial mortgages, cash management solutions, foreign exchange, treasury services, and risk management products.
- Institutional and Corporate Clients: These clients include corporations, governments, and institutional investors that leverage BMO's capital markets expertise for services like debt and equity capital-raising, strategic advice on mergers and acquisitions, loan origination and syndication, treasury management, trade finance, and various trading solutions (debt, foreign exchange, equity, commodities).
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Darryl White, Chief Executive Officer, BMO Financial Group
Darryl White was appointed Chief Executive Officer of BMO Financial Group in 2017, with his tenure effective November 1, 2017. He joined BMO's investment and corporate banking business in Toronto in 1994. Throughout his career at BMO, he has held various senior leadership roles, including Head of Montreal Investment & Corporate Banking for BMO Capital Markets (2006), CEO and Group Head, BMO Capital Markets (2014), and BMO's Chief Operating Officer (2016). Mr. White chairs the bank's Executive Committee and serves as a director of BMO Financial Group and its U.S. subsidiary, BMO Financial Corp.
Rahul Nalgirkar, Chief Financial Officer
Rahul Nalgirkar is appointed Chief Financial Officer, effective January 1, 2026. He joined BMO in 2022 as the CFO of BMO U.S. and of BMO's commercial banking businesses in both Canada and the U.S. Prior to his time at BMO, Mr. Nalgirkar served as the Line of Business Group CFO at Fifth Third Bank and held corporate finance positions at GE Capital, Citigroup, and CIT.
Darrel Hackett, U.S. CEO, BMO Financial Group; CEO, BMO Financial Corp.; President & CEO, BMO Bank N.A.
Darrel Hackett serves as the U.S. CEO for BMO Financial Group, CEO of BMO Financial Corp., and President & CEO of BMO Bank N.A. He is a member of the senior executive team at BMO.
Aron Levine, President, BMO U.S.
Aron Levine was hired by BMO in June 2025 to lead its U.S. operations as President, BMO U.S. He has three decades of experience spanning consumer banking, wealth management, corporate strategy, and commercial real estate finance. Mr. Levine joined BMO from Bank of America, where he was previously president of preferred banking.
Sharon Haward-Laird, Head of Canadian Commercial Banking and North American Shared Services; Co-Head of Canadian Personal and Commercial Banking
Sharon Haward-Laird leads Canadian commercial banking and North American shared services and also serves as co-head of Canadian personal and commercial banking. Her background includes experience in treasury, payments, corporate communications, and investor relations.
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<h3>Key Risks to Bank of Montreal (BMO)</h3> <p>Bank of Montreal (BMO) faces several key risks inherent in the financial services industry, primarily stemming from its extensive lending activities and exposure to market dynamics. Based on recent analyses, the most significant risks include credit risk exacerbated by economic uncertainty, interest rate fluctuations, and exposure to climate transition risks.</p> <ol> <li> <strong>Credit Risk and Economic Uncertainty:</strong> Credit risk is a dominant financial headwind for BMO, as highlighted by concerns over its loan book's sensitivity to an uncertain economic environment. The bank's provision for credit losses (PCL) has been a significant pressure point, with a rising likelihood of recession and higher credit loss provisions impacting profitability. Canadian homeowners facing mortgage renewals by the end of 2026, particularly those with highly leveraged mortgages from lower interest rate periods, could experience payment shock, increasing real estate secured lending and mortgage risks. Furthermore, Canadian business insolvencies are trending higher than pre-pandemic levels, contributing to wholesale credit risk. Analysts have noted that BMO's allowance for bad loans, at 74%, provides a thinner buffer if credit quality deteriorates. Challenges in BMO's U.S. commercial banking segment and pressures from loan impairments in capital markets have also led to increased credit losses. </li> <li> <strong>Interest Rate Fluctuations:</strong> The changing interest rate environment poses one of the biggest uncertainties for Canadian banks, including BMO. While higher interest rates have historically boosted net interest income (NII), a stabilization or potential cut in rates could limit NII growth. Elevated interest rates also lead to higher borrowing costs for consumers and businesses, increasing mortgage renewal/refinancing risk and potentially decreasing spending and investment. Additionally, BMO's recurring fixed income issuance could pressure margins if credit spreads or rates move unfavorably. The bank's Risk Review Committee also considers the risk of low or negative interest rates. </li> <li> <strong>Climate Transition Risk (Fossil Fuel Exposure):</strong> BMO, as one of Canada's "Big Five" banks, is significantly more exposed to financial risks associated with the energy transition than its global peers. In 2024, Canadian banks were reported to have three times more exposure to the fossil fuel sector than top European banks and more than twice that of major U.S. counterparts. This persistent high exposure, particularly to less cost-competitive Canadian oil and gas producers, positions BMO for higher financial risk as declining fossil fuel demand could drive prices down in a net-zero transition. </li> </ol>AI Analysis | Feedback
- The emergence and rapid growth of Fintechs and Challenger Banks pose a significant threat. These digital-first financial service providers often offer more agile, lower-cost, and superior digital user experiences for banking products like checking accounts, savings, and personal loans, directly competing with BMO's personal and commercial banking divisions. Their ability to attract customers with innovative features and streamlined processes threatens to erode BMO's market share and customer relationships, similar to how Netflix challenged Blockbuster's traditional model.
- The trend of Embedded Finance and the expansion of Big Tech companies into financial services represents another clear emerging threat. Non-financial companies (e.g., retailers, tech giants) are increasingly integrating financial products and services directly into their existing platforms and customer journeys. Examples include buy-now-pay-later (BNPL) services at checkout, digital wallets offered by tech companies, and non-bank entities offering credit or payment solutions. This development can disintermediate traditional banks like BMO by shifting the primary customer touchpoint for financial transactions away from them, potentially reducing BMO's direct customer interaction, data insights, and revenue streams.
- The continued disruption in Wealth Management and Brokerage by digital platforms and robo-advisors threatens BMO's investment and wealth advisory services. Platforms offering low-cost, automated investment advice or commission-free trading are attracting a growing base of investors, particularly younger demographics. This puts significant pressure on the fee structures and client acquisition strategies of traditional wealth managers and brokerages like BMO, mirroring how new digital models disrupted older industries.
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Here are the addressable market sizes for Bank of Montreal's (BMO) main products and services in North America:
- Personal Banking: The North America retail banking market generated a revenue of approximately USD 598.4 billion in 2024 and is projected to reach US$ 922.8 billion by 2033. Another estimate places the North America retail banking market at USD 1.62 trillion in 2025, growing to USD 1.72 trillion in 2026. The U.S. credit card payments market was valued at USD 187.45 billion in 2024. North America accounted for 45.72% of the global credit card market size in 2025, with the global market estimated at USD 14.83 trillion in 2025 and USD 15.36 trillion in 2026. The North America mortgage and loan brokers market size was approximately USD 12.89 billion in 2024. North America also held a 33.89% share of the global mortgage market in 2025, with the global market expected to reach USD 15.299 billion in 2025. The North America reverse mortgage market generated a revenue of USD 641.8 million in 2023.
- Commercial Banking: North America was the largest region in the commercial banking market in 2025, with the global market size at USD 4.398 trillion. The global commercial banking market size was valued at USD 3.78 trillion in 2024 and is expected to grow to USD 4.32 trillion in 2025. The U.S. commercial banking market size is estimated at USD 226.44 billion in 2024 and is expected to reach USD 269.28 billion by 2029.
- Wealth Management and Investment Advisory: The global wealth management market size was valued at USD 1.636 trillion in 2024, with North America contributing about two-thirds of the global revenue in 2022. Another source stated the global wealth management market size was valued at USD 1.25 trillion in 2020, with North America dominating the market share. The North America wealth management software market generated a revenue of USD 2,051.3 million in 2024.
- Insurance: The North American life insurance market had total gross written premiums of approximately $758.8 billion in 2022. In 2024, North America held a dominant position in the global life insurance market, capturing over a 34.6% share and holding USD 1.17 trillion in revenue. The North America property and casualty insurance market held the largest revenue share, valued at USD 853.13 billion in 2025. The North America home insurance market generated a revenue of USD 73,633.0 million in 2023. The North America healthcare insurance market generated a revenue of USD 1.317 trillion in 2025.
- Capital Markets (Investment Banking and Trading): North America dominated the investment banking market with a valuation of USD 44.72 billion in 2025 and USD 47.76 billion in 2026. North America held approximately 40% of the global investment banking market revenue, with a market size of USD 54.048 billion in 2024. The global investment banking and trading services market was valued at USD 397.11 billion in 2024, with North America holding the largest share.
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Bank of Montreal (symbol: BMO) is expected to drive future revenue growth over the next 2-3 years through several key initiatives across its diversified financial services.
One primary driver is the **expansion and optimization of its U.S. Banking operations**. Following the integration of Bank of the West, BMO is focusing on enhancing its U.S. loan book, driving future loan growth by hiring commercial bankers and private advisors, and strategically expanding its physical presence by opening new branches in promising areas while divesting underperforming ones.
Another significant contributor to revenue growth is the **sustained performance and growth in Canadian Personal & Commercial Banking**. This segment is anticipated to benefit from higher net interest income, stemming from improved net interest margins and balance growth. Additionally, increased non-interest revenue, including card fees, new client acquisition, and growth in Treasury and Payment Solutions (TPS) fees, will support this expansion.
The **robust performance in Wealth Management and Capital Markets** is also a key growth driver. Wealth Management is poised for growth due to stronger global markets, net new asset inflows, and the strategic acquisition of Burgundy Asset Management Ltd. in November 2025. Concurrently, the Capital Markets segment is expected to see higher revenue driven by strong equities trading activity in Global Markets and increased advisory fee revenue within Investment and Corporate Banking.
Finally, BMO's **strategic investments in technology and AI-powered solutions** are expected to fuel future revenue growth. The bank is committed to leveraging technological advancements and digital innovation, including digital assistants and AI, to enhance operational efficiency, improve client experience, and deliver long-term value. These investments are integral to the company's strategy for profitable growth.
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Here is a summary of Bank of Montreal's (BMO) capital allocation decisions over the last 3-5 years:Share Repurchases
- Bank of Montreal announced its intention to repurchase up to 22.5 million common shares under a normal course issuer bid (NCIB) in December 2021.
- In January 2025, BMO initiated a share buyback program to purchase up to 20 million common shares for cancellation. As of August 29, 2025, the bank had repurchased 15.95 million common shares under this program at an average price of $143.39 per share, totaling $2,287 million.
- BMO announced its intention in August 2025 to establish a new NCIB to purchase up to 30 million common shares, representing approximately 4.2% of its public float as of July 31, 2025, expected to commence in September 2025 and end by September 2026.
Share Issuance
- In March 2022, Bank of Montreal completed a public offering, issuing 20,843,750 common shares at $149.00 each, raising C$3.1 billion, partly to finance the acquisition of Bank of the West.
- In December 2022, BMO completed a public offering and concurrent private placement of common shares at C$118.60 per share, generating approximately C$2.6 billion in gross proceeds.
Outbound Investments
- BMO announced in December 2021 the acquisition of Bank of the West from BNP Paribas for a cash purchase price of US$16.3 billion (US$13.4 billion net of estimated excess capital). This transaction, BMO's largest acquisition in its history, significantly expanded its U.S. banking operations, particularly in California, adding 1.8 million customers and 514 branches. The acquisition closed on February 1, 2023.
- In July 2022, BMO acquired Radicle Group Inc.
- In June 2025, BMO agreed to acquire Toronto-based Burgundy Asset Management in a C$625 million (US$456 million) deal, aiming to boost its offerings for high-net-worth clients.
Capital Expenditures
- For the trailing twelve months ended July 2025, Bank of Montreal reported Capital Expenditures (CapEx) of -1,662 million CAD.
- Over the past five years, BMO's average Capital Expenditures percentage (CapEx %) has been 4.52%, with a high of 5.38% as of September 30, 2023.
- The bank plans to add 150 new branches over the next five years, with a strategic focus on expanding its presence in California. Additionally, expected core expense growth in 2026 includes increasing investments in technology and automation, particularly within its U.S. banking and wealth businesses.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 112.26 |
| Mkt Cap | 123.4 |
| Rev LTM | 50,300 |
| Op Inc LTM | - |
| FCF LTM | 2,306 |
| FCF 3Y Avg | 9,183 |
| CFO LTM | 3,750 |
| CFO 3Y Avg | 10,550 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 9.3% |
| Rev Chg 3Y Avg | 11.0% |
| Rev Chg Q | 7.1% |
| QoQ Delta Rev Chg LTM | 1.7% |
| Op Mgn LTM | - |
| Op Mgn 3Y Avg | - |
| QoQ Delta Op Mgn LTM | - |
| CFO/Rev LTM | 10.3% |
| CFO/Rev 3Y Avg | 36.5% |
| FCF/Rev LTM | 6.0% |
| FCF/Rev 3Y Avg | 32.0% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 123.4 |
| P/S | 2.7 |
| P/EBIT | - |
| P/E | 9.8 |
| P/CFO | 4.9 |
| Total Yield | 10.3% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 14.8% |
| D/E | 2.8 |
| Net D/E | 1.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -6.6% |
| 3M Rtn | -4.9% |
| 6M Rtn | 8.7% |
| 12M Rtn | 47.6% |
| 3Y Rtn | 81.5% |
| 1M Excs Rtn | -0.8% |
| 3M Excs Rtn | 3.4% |
| 6M Excs Rtn | 12.3% |
| 12M Excs Rtn | 32.1% |
| 3Y Excs Rtn | 25.6% |
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Canadian Personal and Commercial Banking (P&C) | 11,439 | 10,559 | 9,868 | 8,786 | 8,035 |
| United States (U.S.) Banking | 10,811 | 9,180 | 6,302 | 5,511 | 5,531 |
| Capital Markets | 6,516 | 6,392 | 6,172 | 6,126 | 5,326 |
| Wealth Management | 4,599 | 5,411 | 4,524 | 7,053 | 6,708 |
| Corporate Services | -570 | -2,283 | 6,844 | -290 | -414 |
| Share of profit (loss) in associates and joint ventures | -248 | -161 | |||
| Total | 32,795 | 29,259 | 33,710 | 26,938 | 25,025 |
| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Canadian Personal and Commercial Banking (P&C) | 3,457 | 3,573 | 3,826 | 3,246 | 2,028 |
| United States (U.S.) Banking | 2,008 | 2,483 | 2,497 | 2,136 | 1,277 |
| Capital Markets | 1,492 | 1,625 | 1,772 | 2,081 | 1,087 |
| Wealth Management | 1,067 | 1,146 | 1,251 | 1,374 | 1,096 |
| Corporate Services | -706 | -4,402 | 4,191 | -1,327 | -391 |
| Total | 7,318 | 4,425 | 13,537 | 7,510 | 5,097 |
Price Behavior
Price Behavior
| Market Price | $131.76 | |
| Market Cap ($ Bil) | 93.3 | |
| First Trading Date | 10/27/1994 | |
| Distance from 52W High | -11.5% | |
| 50 Days | 200 Days | |
| DMA Price | $140.11 | $124.87 |
| DMA Trend | up | up |
| Distance from DMA | -6.0% | 5.5% |
| 3M | 1YR | |
| Volatility | 25.8% | 20.4% |
| Downside Capture | 0.78 | 0.56 |
| Upside Capture | 186.36 | 104.02 |
| Correlation (SPY) | 66.1% | 64.5% |
BMO Betas & Captures as of 2/28/2026
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 1.35 | 1.12 | 1.17 | 0.87 | 0.65 | 0.75 |
| Up Beta | 0.56 | 0.47 | 0.40 | 0.60 | 0.45 | 0.62 |
| Down Beta | 0.87 | 0.99 | 0.95 | 0.72 | 0.70 | 0.76 |
| Up Capture | 219% | 192% | 207% | 126% | 94% | 64% |
| Bmk +ve Days | 9 | 20 | 31 | 70 | 142 | 431 |
| Stock +ve Days | 14 | 26 | 39 | 77 | 152 | 416 |
| Down Capture | 125% | 90% | 104% | 86% | 78% | 94% |
| Bmk -ve Days | 12 | 21 | 30 | 54 | 109 | 320 |
| Stock -ve Days | 7 | 15 | 22 | 47 | 99 | 332 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with BMO | |
|---|---|---|---|---|
| BMO | 40.8% | 20.3% | 1.57 | - |
| Sector ETF (XLF) | -4.0% | 19.2% | -0.33 | 66.1% |
| Equity (SPY) | 14.5% | 18.9% | 0.59 | 64.5% |
| Gold (GLD) | 50.2% | 27.7% | 1.46 | 27.1% |
| Commodities (DBC) | 17.8% | 17.6% | 0.85 | 29.5% |
| Real Estate (VNQ) | 0.4% | 16.4% | -0.15 | 49.8% |
| Bitcoin (BTCUSD) | -23.7% | 44.2% | -0.49 | 35.9% |
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Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with BMO | |
|---|---|---|---|---|
| BMO | 13.1% | 21.2% | 0.52 | - |
| Sector ETF (XLF) | 9.1% | 18.7% | 0.37 | 69.4% |
| Equity (SPY) | 11.8% | 17.0% | 0.54 | 63.0% |
| Gold (GLD) | 20.7% | 17.7% | 0.96 | 18.7% |
| Commodities (DBC) | 11.6% | 18.9% | 0.50 | 28.2% |
| Real Estate (VNQ) | 3.0% | 18.8% | 0.07 | 53.1% |
| Bitcoin (BTCUSD) | 4.0% | 56.6% | 0.29 | 25.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with BMO | |
|---|---|---|---|---|
| BMO | 12.8% | 23.6% | 0.51 | - |
| Sector ETF (XLF) | 12.0% | 22.1% | 0.50 | 74.9% |
| Equity (SPY) | 14.0% | 17.9% | 0.67 | 68.3% |
| Gold (GLD) | 13.3% | 15.8% | 0.70 | 8.2% |
| Commodities (DBC) | 8.2% | 17.6% | 0.39 | 37.0% |
| Real Estate (VNQ) | 4.7% | 20.7% | 0.19 | 59.5% |
| Bitcoin (BTCUSD) | 66.4% | 66.8% | 1.06 | 19.2% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| SUMMARY STATS | |||
| # Positive | 0 | 0 | 0 |
| # Negative | 0 | 0 | 0 |
| Median Positive | |||
| Median Negative | |||
| Max Positive | |||
| Max Negative | |||
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 01/31/2021 | 02/23/2021 | 6-K |
| 07/31/2020 | 08/25/2020 | 6-K |
| 07/31/2014 | 08/26/2014 | 6-K |
| 04/30/2014 | 05/28/2014 | 6-K |
| 01/31/2014 | 02/25/2014 | 6-K |
| 10/31/2013 | 02/25/2014 | 6-K |
| 07/31/2013 | 08/27/2013 | 6-K |
| 04/30/2013 | 05/29/2013 | 6-K |
| 01/31/2013 | 02/26/2013 | 6-K |
| 07/31/2012 | 08/28/2012 | 6-K |
| 04/30/2012 | 05/23/2012 | 6-K |
| 01/31/2012 | 02/28/2012 | 6-K |
| 07/31/2011 | 08/24/2011 | 6-K |
| 04/30/2011 | 05/25/2011 | 6-K |
| 01/31/2011 | 03/01/2011 | 6-K |
| 07/31/2010 | 08/24/2010 | 6-K |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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