BMO.TO Stock Today: Q1 EPS +15%, PCL Down; Dividend Steady – February 25
The BMO stock price was near C$195 at the latest trade as Bank of Montreal (BMO.TO) posted Q1 2026 results on February 25. Adjusted EPS came in at $3.48, up 15% year over year, with provision for credit losses down to $746 million and adjusted ROE at 12.4%. The bank kept its $1.67 quarterly dividend, repurchased 6.0 million shares, and reported a CET1 ratio of 13.1%. We break down what this means for Canadian investors tracking the BMO stock price and near-term performance.
BMO stock price and trading setup
The BMO stock price hovered at C$195.06, trading between C$194.16 and C$195.82. It sits above the 50-day average of C$186.34 and the 200-day average of C$168.48, with a 52-week range of C$121.31 to C$204.57. Volume was 2.28 million versus a 2.60 million average, suggesting a steady reaction to earnings rather than a surge.
Momentum is constructive. RSI stands at 65.49 while MACD remains positive. The middle Bollinger band near C$193.69 is first support, with the lower band near C$186.08 as secondary. Resistance sits around the upper band at C$201.31 and the 52-week high at C$204.57. Year to date, the BMO stock price is up about 11.5%, and roughly 35.8% over one year.
BMO Q1 results: growth and credit quality
Adjusted EPS reached $3.48, up 15% year over year, driven by record segment revenues and firm cost control. Provision for credit losses fell to $746 million, easing pressure on net income. Adjusted ROE was 12.4%, a solid print for a Canadian bank in a mixed credit cycle. These metrics support the recent strength in the BMO stock price.
Management cited record revenues across key businesses. While line-by-line figures were not detailed here, the combination of lower credit costs and stable margins helped deliver the 12.4% adjusted ROE. We will watch fee income, loan growth, and deposit trends in Canada and the U.S. to gauge durability through 2026.
Capital strength, buybacks and BMO dividend
BMO’s CET1 ratio remained at 13.1%, offering a healthy buffer for growth and credit normalization. The bank repurchased 6.0 million shares in the quarter. With about 716.3 million shares outstanding, that is close to 0.8% of the float, which can modestly lift per-share metrics and support valuation over time.
The BMO dividend stays at $1.67 per quarter, implying $6.68 annualized. At a C$195.06 share price, that is an indicative yield near 3.4%. The reported TTM payout ratio is about 58%. Combined with a 13.1% CET1 ratio, the dividend profile looks well supported, though future moves will reflect earnings, credit, and regulatory guidance.
What to watch next for investors
From here, we focus on credit trends, expense discipline, and the Bank of Canada rate path. Loan growth, deposit mix, and non-interest income will shape earnings power. The BMO stock price could react to shifts in PCL, capital deployment, and any updates on buybacks or the BMO dividend policy as 2026 unfolds.
Market tone also depends on U.S. tech leadership and earnings revisions. For reference, recent moves around Workday show how analyst actions sway sentiment: see Investing.com coverage and TipRanks analysis. While unrelated to banks, these shifts can influence cross-asset flows and risk appetite.
Final Thoughts
BMO’s Q1 2026 print checks key boxes for Canadian bank investors. Adjusted EPS rose 15% to $3.48, provision for credit losses fell to $746 million, and adjusted ROE landed at 12.4%. Capital is strong at a 13.1% CET1 ratio, the $1.67 quarterly BMO dividend remains intact, and 6.0 million shares were repurchased. Technically, the BMO stock price trends above its 50-day and 200-day averages with momentum still positive, though indicators are nearing overbought levels. Our takeaways: watch credit costs through mid-year, track revenue mix and operating leverage, and monitor policy signals from the Bank of Canada. For positioning, consider staged entries near support and reassess at resistance around C$201 to C$205. As always, use position sizing and diversify.
FAQs
What moved the BMO stock price today?
The share price reflected Q1 2026 results: adjusted EPS of $3.48, up 15% year over year, lower provision for credit losses at $746 million, and adjusted ROE of 12.4%. The bank also maintained a $1.67 quarterly dividend, repurchased 6.0 million shares, and reported a 13.1% CET1 ratio, supporting sentiment.
Is the BMO dividend safe after Q1 2026?
The $1.67 quarterly dividend remains in place. With CET1 at 13.1% and a TTM payout ratio near 58%, coverage appears reasonable. Future decisions will depend on earnings, credit trends, and regulatory guidance. Income investors should revisit coverage if PCL rises or if operating leverage weakens later in the year.
How attractive is BMO’s valuation now?
At around C$195, BMO trades near 1.64 times book and roughly 17 to 18 times trailing earnings. That is not distressed, but it is supported by improving earnings and lower credit costs. Compare against Canadian bank peers and your required return. Use pullbacks toward key supports to manage entry risk.
What is BMO’s provision for credit losses trend?
For Q1 2026, provision for credit losses fell to $746 million. That reduction supported net income and ROE. The path from here depends on consumer health, commercial exposures, and rates. Track upcoming quarters for normalization and any sector-wide signals from peer Canadian banks reporting this season.
What are near-term expectations for the BMO stock price?
Models point to incremental upside if earnings momentum holds, with one scenario near C$196 over the next quarter and about C$219 over twelve months. That said, resistance sits around C$201 to C$205. Monitor credit costs, revenue mix, and the Bank of Canada rate path before chasing breakouts.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.