Bank of Montreal Beats Q2 Estimates on Commercial Loan Growth

Bank of Montreal Q2 Results

Canada's Bank of Montreal (BMO) beat revenue and adjusted EPS estimates for the second quarter of 2026, driven by commercial loan growth. Adjusted net income rose 34% year-over-year to C$2.73 billion, also exceeding analyst expectations.

Key Financial Highlights

BMO reported Q2 revenue of C$9.57 billion (estimate: C$9.47 billion) and adjusted EPS of C$3.67 (estimate: C$3.45). The company raised its quarterly dividend and agreed to sell its Transportation Finance and Vendor Finance businesses.

Growth Drivers

CEO Darryl White highlighted solid sequential commercial banking loan growth in both Canada and the U.S., reflecting improving client activity. Higher fee revenue in Capital Markets, Wealth Management, and Treasury and Payments also contributed to earnings. Provision for credit losses fell to C$739 million from C$1.05 billion a year earlier, mainly due to lower provisions in Capital Markets and U.S. Banking.

Analyst Coverage and Price Target

The current average analyst rating on the shares is "hold," with 4 "strong buy" or "buy," 9 "hold," and 2 "sell" or "strong sell" recommendations. Wall Street's median 12-month price target for BMO is C$213.00, about 4.8% below its May 26 closing price of C$223.64. The stock recently traded at 15 times next 12-month earnings, up from a P/E of 13 three months ago.