BMO Financial Group reports Q3 earnings hit by divestiture charges

BMO Financial Group posted a reported net income of $1.75 billion for the third quarter of 2026, a 25% decline from the previous year, as the bank absorbed a significant $962 million goodwill charge tied to the planned sale of its Transportation and Vendor Finance business units.

Corp and Tech·August 25, 2026·reads: 328

Despite the impact of divestiture-related costs on reported figures, the bank’s adjusted net income rose 19% to $2.86 billion. CEO Darryl White pointed to disciplined execution of growth strategies established earlier this year, noting that every business segment achieved record pre-provision, pre-tax earnings. The bank’s adjusted return on equity reached 14%, climbing from 12% in the same period last year.

Capital Markets and Wealth Management segments served as primary growth drivers during the quarter, supported by sustained commercial loan expansion across both Canadian and U.S. markets. Credit performance also showed resilience, with the total provision for credit losses falling to $722 million from $797 million a year earlier. BMO maintained a Common Equity Tier 1 ratio of 13% and confirmed a fourth-quarter dividend of $1.71 per common share, reflecting a 5% increase over the prior year. Looking ahead, the bank intends to launch a new normal course issuer bid to repurchase up to 25 million common shares, pending regulatory approvals.