While the bank demonstrated strong pre-provision pre-tax earnings growth and improved its CET1 ratio, challenges were evident in credit performance and net income declines. The sentiment is mixed with positive operational achievements but significant financial setbacks.
Company Guidance
During the Q4 2024 earnings call for BMO Financial Group, significant emphasis was placed on various performance metrics and strategic priorities. BMO reported a net income of $7.4 billion for the year, with earnings per share at $9.68, both reflecting a decline from the previous year due to higher impaired loss rates. Despite the challenging environment, the bank's pre-provision pre-tax earnings grew by 5% to a record $13.4 billion, driven by growth across all operating groups. The efficiency ratio improved by nearly 100 basis points to 58.6%, and deposits increased by $61 billion or 9%. The Common Equity Tier 1 (CET1) ratio rose by 110 basis points to 13.6%, supporting the bank's capacity to return excess capital to shareholders. A dividend increase of $0.04 to $1.59 per share was announced, alongside intentions to repurchase common shares. Looking ahead, BMO aims to rebuild its return on equity to a target of 15% over the medium term, focusing on U.S. segment improvements, positive operating leverage, and disciplined balance sheet optimization.
Pre-Provision Pre-Tax Earnings Growth
Pre-provision pre-tax earnings increased by 5% to a record $13.4 billion, with growth across all operating groups.
Positive Operating Leverage
The bank achieved positive operating leverage in each of the last 3 quarters and for the full year at 1.6%.
CET1 Ratio Improvement
The CET1 ratio increased by 110 basis points to 13.6%, indicating strong capital management.
Dividend Increase
A dividend increase of $0.04 to $1.59 per share was announced, representing a 5% increase over the previous year.
Record Canadian P&C Revenue
Canadian P&C pre-provision pre-tax was up 11% with record revenue driven by good loan and deposit growth.
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Bank Of Montreal (TSE:BMO) Earnings, Revenues Date & History
The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
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TSE:BMO Earnings-Related Price Changes
Report Date
Price 1 Day Before
Price 1 Day After
Percentage Change
Dec 05, 2024
C$134.15
C$139.73
+4.16%
Aug 27, 2024
C$118.34
C$110.70
-6.45%
May 29, 2024
C$127.87
C$116.54
-8.86%
Feb 27, 2024
C$122.23
C$117.87
-3.56%
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
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FAQ
When does Bank Of Montreal (TSE:BMO) report earnings?
Bank Of Montreal (TSE:BMO) is schdueled to report earning on Feb 25, 2025, TBA Not Confirmed.
What is Bank Of Montreal (TSE:BMO) earnings time?
Bank Of Montreal (TSE:BMO) earnings time is at Feb 25, 2025, TBA Not Confirmed.
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.