BMO Financial Group Roars Ahead: Q2 2026 Earnings Exceed Expectations
May 27, 2026 - Toronto, Ontario
In a highly anticipated earnings release, BMO Financial Group announced its second-quarter results for 2026, surpassing market expectations with a strong performance across all business segments.
CEO Darryl White highlighted the company's commitment to executing on its plan to elevate returns and accelerate growth, stating, "Our Q2 results continued to demonstrate meaningful progress and momentum against these commitments." The bank's adjusted earnings per share (EPS) reached CAD 3.67, a 40% increase from last year, driven by robust fee revenue in Capital Markets, Wealth Management, and Treasury and Payment Solutions.
Net income of CAD 2.7 billion was recorded, with pre-provision pre-tax earnings of CAD 4.4 billion, up 16% year-over-year. Operating leverage was strong at 4.1%, while credit remained well-managed, in line with expectations. The company's Common Equity Tier 1 (CET1) ratio is a healthy 13%, not including the pro forma impact of the sale of transportation and vendor finance businesses.
BMO also announced a dividend increase of 5% to CAD 1.71, reflecting its ongoing commitment to returning capital to shareholders. The company has been actively buying back shares, with six million purchased this quarter alone.
The bank's return on equity (ROE) continued to show impressive growth, up 370 basis points from a year ago to 13.5%. This marks the fourth consecutive quarter of peer-leading performance, solidifying BMO's position as a top-tier financial institution.
In particular, U.S. Banking reported ROE momentum of 220 basis points from last year to 9.3%, with strong sequential loan growth achieved in Q2. Canadian P&C and Commercial Banking also delivered impressive results, with customer acquisition and deposit growth driving business expansion.
As BMO continues to execute on its plan to deliver sustainably higher ROE and earnings growth, the company's diversified businesses, discipline around cost management, risk optimization, and capital allocation are key drivers of this progress. With a clear trajectory towards achieving and sustaining its target 15% ROE by fiscal year-end 2027, BMO remains well-positioned for long-term success.
