Bank of Montreal 3Q Basel III CET 1 ratio 13.5%, est. 13.4%

Bank of Montreal 3Q Basel III CET 1 ratio 13.5%, est. 13.4%

Bank of Montreal (BMO) has recently reported its Basel III Common Equity Tier 1 (CET 1) ratio for the third quarter (3Q) of 2025, standing at 13.5%, with an estimated 13.4% for the period. This ratio, which measures the bank's capital adequacy, is crucial for assessing its financial health and resilience in the face of economic uncertainties and regulatory requirements.

The CET 1 ratio reflects the bank's ability to absorb losses without affecting its ability to meet its financial obligations. A higher CET 1 ratio indicates a more robust capital base, which is particularly important in today's volatile financial environment. BMO's CET 1 ratio of 13.5% is above the regulatory minimum, positioning the bank favorably for future growth and stability.

In addition to the CET 1 ratio, BMO has been receiving mixed analyst ratings. As of August 23, 2025, the consensus recommendation from analysts is a "Hold," with one "Sell," seven "Hold," and four "Buy" ratings among twelve analysts covering the stock [1]. This mixed sentiment is likely influenced by various factors, including the bank's recent dividend increase and its performance in the financial sector.

BMO recently increased its quarterly dividend to $1.63 per share, up from $1.59, representing an annualized dividend yield of 4.1% [1]. This increase is a positive sign for income-focused investors, as it indicates the bank's commitment to distributing a portion of its earnings to shareholders.

Looking ahead, BMO is expected to report earnings on August 26, 2025, for the period ending July 31, 2025. Analysts predict a 7.8% increase in revenue to C$8.846 billion from C$8.21 billion a year ago, with earnings per share (EPS) expected to be C$2.93 [2]. These earnings estimates reflect the bank's ongoing efforts to diversify its revenue streams and adapt to the evolving financial landscape.

In conclusion, Bank of Montreal's strong CET 1 ratio and recent dividend increase position it favorably for investors seeking stability and income. However, the mixed analyst sentiment and the bank's performance in the broader financial sector should be carefully considered before making investment decisions. As with any investment, it is essential to conduct thorough research and consider both the short-term and long-term implications.

References:
[1] https://www.marketbeat.com/instant-alerts/bank-of-montreal-tsebmo-receives-average-recommendation-of-hold-from-analysts-2025-08-23/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3UE0NT:0-bank-of-montreal-expected-to-post-earnings-of-c-2-93-a-share-earnings-preview/