Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeFinanceBankingBMO beats expectations, hikes dividend on boost from capital marketsBank of Montreal's net income was $2.6 billion, up 34% from last yearLast updated 1 hour ago You can save this article by registering for free here. Or sign-in if you have an account.Bank of Montreal reported earnings Wednesday. Photo by Ben Nelms/BloombergBank of Montreal‘s stronger performance in its capital markets and wealth management divisions during the second quarter allowed it to top analysts’ earnings expectations.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe lender’s net income for the three months ending April 30 was $2.6 billion, up 34 per cent from the same period last year, resulting in net earnings per share of $3.53.Its adjusted net income — which removes the impact of non-recurring items — was $2.7 billion, up 34 per cent year over year, resulting in adjusted earnings per share of $3.67, which topped analysts’ expectations of about $3.45 per share.“Our second-quarter results continued to demonstrate meaningful progress and momentum,” chief executive Darryl White said in a statement on Wednesday. “We once again strengthened ROE and delivered strong EPS growth, driven by robust fee revenue across capital markets, wealth management and treasury and payments.”Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe Big Six banks‘ earnings tend to provide insights into the Canadian economy, which has been under further strain ever since the Iran conflict pushed up energy prices and added more economic uncertainty.All six, however, are expected to post higher profits this quarter. But analysts say the ongoing uncertainty will compel banks to continue to keep aside a high amount of money for loans that may potentially go bad. That marks a shift from earlier forecasts, which had anticipated a gradual improvement in provisions for credit losses (PCLs) in the second half of 2026.BMO’s PCLs were $739 million in the second quarter, down from $1.05 billion a year ago. PCLs for impaired loans were $734 million, a year-over-year decrease of $31 million, primarily due to lower provisions in capital markets and United States banking, while PCLs for performing loans were $5 million, compared to $289 million a year ago.“The performing provision in the current quarter was primarily driven by the net impact of model changes, largely offset by portfolio credit migration and lower portfolio balances, while the prior year reflected changes in the macroeconomic environment,” the bank said. The bank’s adjusted net income for its Canadian business segment was $887 million, an increase of $119 million, or 15 per cent, compared to last year, primarily due to a five per cent increase in revenue and lower PCLs. Its U.S. banking segment’s adjusted net income was $847 million, an increase of $172 million, or 25 per cent.“The impact of the weaker U.S. dollar decreased net income by five per cent, revenue by four per cent and expenses by three per cent,” the bank said.Its adjusted net income from its capital markets segment increased 46 per cent from a year ago to $641 million, while its wealth management business reported a 39 per cent increase to $444 million.BMO also increased its dividend by four cents to $1.71 per share.Earlier in May, BMO announced it was selling a majority interest in its transportation and finance lending businesses to a New York-based alternative investment platform to help improve its capital efficiency and focus on its core markets. The bank said it would record a net after-tax charge of approximately $900 million related to the sale, primarily related to goodwill, in the third quarter.BMO, Scotiabank and National Bank of Canada report their results on Wednesday, while Royal Bank of Canada, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce will report them on Thursday. Get the latest from Naimul Karim straight to your inbox Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.