The Bank of Montreal delivered impressive third-quarter results, topping analyst expectations with adjusted net income of $2.86 billion, representing a 19% year-over-year increase. According to reports from Investing.com, the bank's adjusted earnings per share reached $3.96, surpassing analyst estimates of approximately $3.74. The bank's revenue climbed 11% year-over-year to $9.9 billion, compared to the consensus estimate of $9.7 billion. The reported net income for the quarter ending July 31 was $1.75 billion, compared to $2.33 billion in the same period last year, resulting in earnings per share of $2.38.
All major business segments contributed to the strong performance, with the bank reporting record pre-provision, pre-tax earnings across all divisions. As reported by Investing.com, the adjusted net income in Canadian personal and commercial banking increased 16% to $980 million, while U.S. banking profits rose 13% to $868 million. The wealth management segment delivered exceptional growth of 22% to $480 million, and capital markets profits surged 46% to $645 million, reflecting higher revenue in Global Markets and Investment and Corporate Banking. The lender's provision for credit losses decreased to $722 million from $797 million in the previous year.
The reported net income decline was primarily attributed to a $962 million after-tax charge related to the bank's decision to sell its Transportation Finance and Vendor Finance businesses, as reported by Investing.com. This charge was announced in May when the lender disclosed it would record an after-tax charge related to a reduction in goodwill. Despite this impact, the bank's adjusted results demonstrated strong underlying business performance across all segments.
The bank announced a fourth-quarter dividend of $1.71 per common share, representing a 5% increase from the prior year, payable on November 26. According to Investing.com, BMO also announced its intention to repurchase 3.8 million shares for cancellation during the quarter at an average price of $239.37 per share. The bank's strategic focus includes repositioning its U.S. business, which accounts for 40% of overall earnings, following its acquisition of San Francisco-based Bank of the West in 2023.
The bank's Common Equity Tier 1 Ratio stood at 13.0%, compared with 13.5% a year earlier, as reported by Investing.com. CEO Darryl White noted the bank delivered another strong quarter driven by disciplined execution against commitments made at the March Investor Day to elevate ROE and accelerate growth. The strong quarterly results come amid economic uncertainty from the Iran conflict pushing up energy prices and U.S. President Trump's tariff policies, with BMO's management expecting to achieve its 15% ROE target by exiting fiscal 2027.
