Bank of Montreal Earnings Beat & U.S. Turnaround Gains TractionBank of Montreal (NYSE: NYSE:BMO ) reported a strong fourth quarter, supported by improving credit performance in its U.S. division and disciplined execution on its long-term growth strategy. Profit rose to $2.3 billion, helped by a sharp decline in provisions for bad loans as the bank continues to repair last year’s weakened U.S. loan book. Provisions for impaired loans in the U.S. business fell to $209M, down from $446M a year earlier, showing meaningful progress in stabilizing asset quality.
Chief risk officer Piyush Agrawal noted that watchlist formations continue to decline, positioning the bank for lower impaired balances over time. Alongside the credit improvement, BMO has hired more than 100 commercial bankers and private advisers in the United States to expand its loan pipeline. The bank also sold 138 underperforming U.S. branches while planning to open 150 new locations in higher-growth regions over the next five years.
These moves follow BMO’s US$16.3B Bank of the West acquisition, which significantly increased its U.S. footprint. The turnaround is starting to show: U.S. operations earned $807M, up from $281M last year. Capital markets also surged, contributing $521M, more than double last year’s $251M.
Adjusted EPS rose to $3.28, ahead of estimates, and revenue reached $9.34B, up from $8.96B. The bank raised its quarterly dividend to $1.67 per share, reflecting confidence in its medium-term goal of lifting ROE to 15%.
TECHNICALS
The weekly chart shows NYSE:BMO trading just above a key breakout zone around $123–$125, which previously acted as multi-year resistance. Holding above this level keeps momentum bullish and opens a path toward $131–$135 highs. Support sits at $110, with deeper structure support near $85 if macro conditions weaken. MA trend remains positive.
