Welcome to our dedicated page for Bank of Montreal news (Ticker: BMO), a resource for investors and traders seeking the latest updates and insights on Bank of Montreal stock.
The Bank of Montreal (BMO), a diversified financial-services provider based in North America, caters to a wide array of financial needs through its four primary business segments: Canadian personal and commercial banking, U.S. P&C banking, wealth management, and capital markets. Headquartered in Toronto, BMO primarily operates in Canada, with a substantial presence in the U.S.
At BMO, we are committed to helping people at every stage of their financial lives, adapting to evolving customer needs while maintaining a consistent dedication to exceptional service. Our team of over 46,000 employees ensures we deliver the best possible banking experience, whether through personal banking, commercial banking, or wealth management services.
In the fiscal year 2023, BMO reported strong financial results despite a challenging economic backdrop. This included a net income of $1,617 million for the fourth quarter, marking a testament to the bank's robust business diversification and strategic initiatives. Major accomplishments included the acquisition and integration of Bank of the West, significantly enhancing our scale and growth opportunities in the U.S.
Furthermore, BMO has demonstrated a commitment to digital innovation, with advanced digital capabilities recognized by J.D. Power for personal banking customer satisfaction. The bank has also expanded its portfolio by acquiring the AIR MILES Reward Program, further enriching our customer loyalty offerings.
As we look to 2024, BMO remains poised for future growth, focused on strategic investments and dynamic expense management to continue delivering consistent and differentiated performance. We aim to leverage our position as a leading financial services provider to foster a thriving economy, support a sustainable future, and promote an inclusive society.
For the most updated financial statements and management discussions, please visit our Investor Relations page.
Bank of Montreal (BMO) has announced plans to repurchase and cancel up to 20 million common shares through a normal course issuer bid, pending regulatory approvals. The proposed repurchase represents approximately 2.7% of BMO's public float as of November 30, 2024.
The share buyback will be conducted through the Toronto Stock Exchange (TSX) and other designated exchanges, with various purchase methods including automatic purchase plans and block purchases. The program will run for up to one year after TSX acceptance. As of November 30, 2024, BMO had 729,664,893 common shares outstanding, with a public float of 729,409,604 shares.
BMO Financial Group has announced a dividend increase for Q1 2025. The quarterly dividend on common shares will be $1.59 per share, representing a 4-cent (3%) increase from the previous quarter and a 5% increase year-over-year. The bank also declared dividends of $0.190875 per share on Class B Preferred Shares Series 33 and $0.426 per share on Class B Preferred Shares Series 44.
Common share dividends will be payable on February 26, 2025, to shareholders of record on January 30, 2025. Preferred share dividends will be paid on February 25, 2025. Shareholders can participate in the Dividend Reinvestment and Share Purchase Plan, with enrollment forms due by February 3, 2025.
BMO Financial Group reported Q4 2024 net income of $2,304 million ($2.94 per share), compared to $1,710 million in Q4 2023. Adjusted net income was $1,542 million ($1.90 per share), down from $2,243 million year-over-year. The bank's Common Equity Tier 1 (CET1) Ratio strengthened to 13.6% from 12.5%.
Key highlights include a provision for credit losses of $1,523 million, customer deposit growth of $61 billion (9% increase), and a quarterly dividend increase to $1.59 per share (5% year-over-year). BMO announced plans for a normal course issuer bid for up to 20 million common shares, subject to regulatory approval.
For fiscal 2024, BMO achieved net income of $7,327 million ($9.51 per share), compared to $4,437 million in 2023, while delivering positive operating leverage across all operating groups.
BMO has launched its annual Wrap the Good campaign for the 2024 holiday season, featuring gift ideas from businesses owned by traditionally underrepresented communities. The campaign introduces a new augmented reality experience called Unwrap the Good, allowing shoppers to scan and reveal promotional codes through their phones at BMOWrapTheGood.com. Featured businesses include Sḵwálwen Botanicals and Niffy Signature from Canada, and Sol Sister Sport and Not Just Cookies Wholesale Bakery from the United States. The initiative includes complimentary holiday wrapping paper with QR codes in select BMO branches across North America.
Bank of Montreal (BMO) has announced the appointment of two new members to its Board of Directors: Diane Cooper and Brian McManus. Cooper, formerly President and CEO of GE Capital's Commercial Distribution business, brings extensive financial services experience and currently serves on several boards including BMO Financial Corp. McManus, currently Executive Chair of Polycor Inc., brings leadership experience from roles including Executive Chair and CEO of Uni-Select and CEO of Stella-Jones. Both directors bring significant industry expertise and leadership experience to BMO's board.
BMO has announced support for customers and communities impacted by Hurricane Milton. The bank is offering disaster relief options and financial assistance to affected customers. BMO supports the American Red Cross with an annual corporate donation for ongoing relief and resiliency work, including response to communities affected by the hurricane.
Financial relief for BMO personal banking customers includes waiving monthly maintenance fees, non-BMO ATM transaction fees, and overdraft fees. The bank is also extending payment due dates for mortgages, loans, and lines of credit, as well as offering reduced credit card payment amounts. Additionally, BMO is providing low-interest rate loans to qualified consumers in impacted areas within the BMO footprint.
Darrel Hackett, President & CEO of BMO Bank, expressed the bank's commitment to supporting customers, colleagues, and communities in recovering from the devastating storm. BMO encourages those wishing to support relief efforts to do so through organizations such as Direct Relief, United Way Suncoast, and the American Red Cross.
BMO has appointed Kristin Milchanowski as its new Chief Artificial Intelligence and Data Officer, effective October 15, 2024. Kristin will lead BMO's strategies in AI, data, analytics, and robotics, focusing on optimizing business value and enhancing data management across the organization. With over 20 years of experience, primarily in the financial sector, Kristin joins BMO from EY, where she was a Global Innovation Partner / Principal specializing in AI and advanced technologies.
This appointment aligns with BMO's significant investments in AI, including recent recognitions for AI innovation and partnerships with organizations like the Vector Institute, Creative Destruction Lab, and NEXT AI. These collaborations aim to advance AI-enabled solutions, support the AI ecosystem, and foster growth in AI and data science businesses.
BMO has announced a reduction in its US$ prime lending rate from 8.50 percent to 8.00 percent. This 0.50 percentage point decrease will take effect on September 19, 2024. The prime lending rate is a important benchmark used by banks to set interest rates for various financial products, including loans and credit lines. This change could potentially impact borrowing costs for BMO's customers and the bank's overall lending business.
BMO Financial Group (TSX: BMO) (NYSE: BMO) announced a significant legal victory as the U.S. Court of Appeals for the Eighth Circuit overturned a previous jury verdict related to the Petters Ponzi scheme. The court instructed the district court to enter judgment in favor of BMO's U.S. subsidiary, BMO Bank National Association. This ruling is expected to result in a reversal of BMO's current provision of CAD$1,190 million, including accrued interest. The bank anticipates an after-tax recovery of CAD$875 million to be recorded in the fourth quarter in the Corporate Services segment, treated as an adjusting item. This outcome represents a substantial financial benefit for BMO, potentially improving its financial position and shareholder value.
Bronstein, Gewirtz & Grossman, is investigating potential claims against Bank Of Montreal (NYSE:BMO) on behalf of investors. The investigation follows BMO's Q3 2024 financial results, which revealed:
- Adjusted earnings per share of C$2.64 (US$1.96), missing consensus estimates for the third consecutive quarter
- Increased provision for credit losses to C$906 million, up from C$492 million in the same period last year
- A stock price drop of $5.47 per share (6.16%) to $83.30 on August 27, 2024
Jefferies downgraded BMO's stock to Hold from Buy following the news. Investors who purchased BMO securities are encouraged to assist the investigation.
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