DOWNLOAD
BMO Financial
- Sector: Financial Services
- Sub Sector: Consumer Finance and Banking
- Region: Canada
Access this content:
If you are an existing investor, log in first to your Metrobank Wealth Manager account.
If you wish to start your wealth journey with us, click the “How To Sign Up” button.
Fundamental View
AS OF 22 Dec 2025BMO is geographically diversified within Canada & via its commercial banking business in the U.S. and is also well-diversified by revenue with contribution from fee income businesses.
Credit has performed worse than peers in 2024, but losses have stabilized in 2025, based on underwriting and risk management changes in recent years as well as seasoning effects.
Business Description
AS OF 22 Dec 2025- BMO Financial Group is the third largest depository institution in Canada with C$1.48 tn in assets as of F4Q25 and a market capitalization of C$88 bn as of December 22, 2025. Total deposits were C$948 bn at F4Q25.
- BMO operates 1,890 branches in Canada and the United States. In 2025, BMO had 1,007 branches within the United States, mostly in the Midwest. BMO ranked 11th in deposit market share in the U.S. (SNL), with a top-2 share in Illinois.
Risk & Catalysts
AS OF 22 Dec 2025BMO has a strong core deposit base in Canada and in the U.S., which mitigates the potential for a liquidity event. BMO remains well-capitalized relative to requirements with a target CET1 ratio of 12.5%.
Credit trends have largely stabilized in 2025 following a period of elevated provisions in 2024. BMO’s reserves and capital levels all point to BMO maintaining a conservative balance sheet stance and having flexibility to manage through a more extended period of macro weakness in Canada.
We view real estate-related risk in Canada as manageable for BMO given low LTV of exposures in vulnerable markets and conservative underwriting. Commercial real estate accounts for ~10% of total loans, and office is quite manageable at ~1% of total.
BMO closed the acquisition of Bank of the West from BNP Paribas in February 2023, significantly expanding its footprint in the U.S.
Key Metric
AS OF 22 Dec 2025| $ mn | FY21 | FY22 | FY23 | FY24 | LTM 4Q25 |
|---|---|---|---|---|---|
| Revenue | 25,788 | 34,394 | 29,260 | 32,796 | 36,277 |
| Net Income | 7,754 | 13,537 | 4,437 | 7,327 | 8,725 |
| ROAE | 1.01% | 1.01% | 1.01% | 1.01% | 1.01% |
| NIM | 1.59% | 1.59% | 1.59% | 1.59% | 1.59% |
| Net Charge-offs / Loans | 0.14% | 0.08% | 0.14% | 0.39% | 0.34% |
| Total Assets | 988,175 | 1,173,397 | 1,347,006 | 1,409,647 | 1,476,802 |
| Unsecured LT Funding | 51,915 | 64,886 | 63,418 | 115,839 | 76,889 |
| CET1 Ratio (Fully-Phased-In) | 13.7% | 16.7% | 12.5% | 13.6% | 13.3% |
CreditSight View Comment
AS OF 25 Feb 2026We maintain our Market perform for BMO, with our preference within the group remaining to trade up in quality to RBC and TD. Asset quality metrics have shown incremental stabilization in recent quarters following surprising deterioration throughout the latter part of F2024 and early F2025, which was mainly driven by the underperformance of a few commercial credits originated during COVID. Credit provisions have also declined by ~50% from the peak level in F4Q24 while allowance coverage remains robust. BMO’s business model is more commercial-oriented than its peers, and profitability remains strong, with Capital Markets and Wealth Management segments providing a significant uplift to overall revenues in recent quarters.
Recommendation Reviewed: February 25, 2026
Recommendation Changed: August 26, 2020
Featured Issuers
Perusahaan Listrik Negara
Hyundai Motor
Republic of the Philippines
