Bank of Montreal 3QF provision for credit losses C$797M

Bank of Montreal 3QF provision for credit losses C$797M

Bank of Montreal (BMO) has announced its provision for credit losses for the third quarter of 2025, amounting to C$797 million. This figure reflects the bank's ongoing efforts to manage risk and maintain financial stability amidst challenging economic conditions. The provision is a key indicator of the bank's risk management practices and its ability to absorb potential losses from non-performing loans.

The provision for credit losses is part of BMO's broader strategy to ensure operational resilience and financial health. In its Q2 2025 results, BMO reported adjusted net income and EPS of $2.62 per share, demonstrating a strong performance despite the broader economic challenges. The bank's Q2 earnings were supported by stable revenue and robust growth in its Personal and Commercial Banking (PPPT) segment [1].

Analysts have expressed cautious optimism regarding BMO's financial prospects for the remainder of the year. While the consensus recommendation for the stock remains "Hold," some analysts have raised their EPS estimates, reflecting improved expectations. Desjardins recently upgraded its FY2025 EPS estimate to $8.36 from $8.18, signaling confidence in the bank's performance [1].

Investors and financial professionals should closely monitor BMO's upcoming Q3 earnings report, scheduled for August 26, 2025. The report will provide further insight into the bank's financial health and its ability to navigate economic uncertainties. The provision for credit losses, along with other financial metrics, will be crucial indicators of the bank's resilience and growth potential.

References:
[1] https://www.ainvest.com/news/bank-montreal-bmo-2025q3-earnings-preview-upside-potential-earnings-estimate-hike-2508/