Bank of Montreal plans to establish a share-buyback programme for up to 25 million common shares after reporting stronger-than-expected third-quarter results. The Canadian lender recorded a 10% increase in revenue to C$9.90 billion, while adjusted net income rose 19% and provisions for credit losses declined.
Bank of Montreal (BMO) plans to establish a new share-buyback programme of up to 25 million common shares after reporting stronger third-quarter results, supported by higher revenue and improved credit performance.
The Canadian lender said on Tuesday that it intends to establish a new normal course issuer bid (NCIB) covering as many as 25 million common shares. The programme remains subject to approval from Canada's Office of the Superintendent of Financial Institutions and the Toronto Stock Exchange.
BMO's revenue rose 10% year over year to C$9.90 billion in the third quarter ended July 31, 2026, from C$8.99 billion a year earlier. Adjusted net income increased 19% to C$2.86 billion, while adjusted earnings per share rose 22% to C$3.96.
The bank's reported net income, however, fell 25% to C$1.75 billion, largely because of a charge related to the reduction in goodwill associated with BMO's planned sale of its Transportation and Vendor Finance businesses.
Credit performance improved during the quarter. BMO's provision for credit losses declined to C$722 million, from C$797 million a year earlier. The provision for impaired loans fell by C$65 million, with lower provisions in the Canadian personal and commercial banking and U.S. banking businesses contributing to the improvement.
BMO said every business segment delivered record pre-provision, pre-tax earnings, while Capital Markets and Wealth Management continued to show momentum. Capital Markets' adjusted net income increased 45% to C$649 million, while Canadian personal and commercial banking's adjusted net income rose 15% to C$983 million.
The bank also continued returning capital to shareholders. During the quarter, BMO repurchased 3.8 million common shares under its existing share-buyback programme at an average price of C$239.37 per share. It also declared a fourth-quarter dividend of C$1.71 per common share, unchanged from the previous quarter and 5% higher than a year earlier.
BMO's Common Equity Tier 1 ratio stood at 13.0% as of July 31, compared with 13.5% a year earlier, according to the bank.
Chief Executive Officer Darryl White said the bank plans to continue deploying capital toward areas positioned for sustainable growth while returning capital to shareholders through dividends and share repurchases.
The proposed new buyback would give BMO another way to return capital to shareholders following a quarter in which the bank reported stronger adjusted earnings, higher revenue and lower credit-loss provisions.
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