Canadian Banks' Q3 Preview by National Bank.

National Bank previews Canadian banks' Q3 earnings, noting that Bank of Montreal (BMO) is expected to report strong results due to strong performance in its Canadian and US personal and commercial banking segments. Wealth management and capital markets divisions are also expected to contribute positively. BMO serves 13 million customers across North America and globally.

National Bank has previewed the upcoming quarterly earnings reports for Canadian banks, with a focus on Bank of Montreal (BMO). The bank is expected to report strong results, driven by robust performance in its Canadian and US personal and commercial banking segments. Additionally, the wealth management and capital markets divisions are anticipated to contribute positively to BMO's earnings.

BMO serves 13 million customers across North America and globally, and its strong operational performance is reflected in its latest earnings report. Despite missing analysts' consensus estimates for earnings per share (EPS) and revenue in Q3 2024, the bank's trailing EPS of C$10.13 and a price-to-earnings (P/E) ratio of 15.57 indicate a relatively stable financial performance [1].

Key highlights from BMO's Q3 2024 earnings report include:
- EPS: C$2.64, missing analysts' estimates by C$0.08.
- Revenue: C$8.19 billion, below expectations of C$8.23 billion.
- Trailing EPS: C$10.13.
- P/E Ratio: 15.57.

The report also indicates that BMO's quarterly revenue grew by 8.8% year-over-year, driven by strong performance in various business segments. The company's return on equity (ROE) stood at 10.15%, and its net margin was 10.25% for the quarter. These figures suggest a solid operational performance, despite the earnings miss [2].

Institutional investors have shown interest in BMO, with several major players increasing their stakes in the company. Atlas Capital Advisors Inc. boosted its holdings by 1,997.9%, Vanguard Group Inc. by 1.6%, Toronto Dominion Bank by 8.6%, Mackenzie Financial Corp by 15.4%, The Manufacturers Life Insurance Company by 42.7%, and JARISLOWSKY FRASER Ltd by 6.8% [2].

Investors should closely monitor BMO's future earnings reports and the company's ability to meet or exceed analysts' expectations. The bank's recent dividend increase, with a quarterly dividend of C$1.1801, represents a 4.2% yield and is up from its previous dividend of C$1.11. This increase indicates the company's commitment to shareholder returns, although the dividend payout ratio (DPR) remains relatively high at 62.13% [2].

References:
[1] https://www.marketbeat.com/stocks/TSE/BMO/earnings/
[2] https://www.marketbeat.com/instant-alerts/filing-bank-of-montreal-nysebmo-stake-raised-by-atlas-capital-advisors-inc-2025-08-10/