Bank of Montreal
Big investors raise stakes in BMO

Canada's banking sector, led by five dominant lenders, is renowned globally for its stability. None of these banks requested a bailout during the 2008 financial crisis. Instead, they emerged stronger, including the Bank of Montreal (BMO).

Strong Earnings and Rising Investor Interest

BMO reported solid earnings growth in Q3 of fiscal 2025. But recent filings with the US Securities and Exchange Commission (SEC) reveal a notable increase in institutional interest. Hedge funds and large investors have raised their stakes in Canada's oldest bank, now valued at approximately $93.44 billion.

Major Players Increasing Stakes

Goldman Sachs led the charge among big investors in Q1 fiscal 2025. The Canada Pension Plan Investment Board (CPPIB), which manages the Canada Pension Plan, increased its holdings by 66.5% during the quarter. Vanguard Group and Cary Street Partners Investment Advisory LLC also boosted their positions.

Campbell & Co. Investment Adviser LLC acquired a new stake in Q2, making BMO its second-largest holding after purchasing 104,104 shares. The Bank of New York Mellon Corp increased its BMO holdings by 2.5%, bringing its total to 765,073 shares.

Other notable investors in Q2 included Princeton Global Asset Management LLC, Connor Clark & Lunn Investment Management Ltd, and Scheer Rowlett & Associates Investment Management Ltd. Currently, institutional investors and hedge funds own 45.82% of BMO shares.

Expansion in North America

BMO's growth has accelerated following its acquisition of Bank of the West from BNP Paribas in February 2023. This strategic move expanded its Western US presence and strengthened its Midwest operations.

The $16 billion deal added 500 branches, 1.8 million new customers, and enhanced its commercial and wealth management services. As a result, BMO is now the seventh-largest bank in North America.

Further expansion plans include the announced acquisition of Burgundy Asset Management Ltd. on 19 June 2025. This Toronto-based independent wealth manager will bolster BMO's wealth management and financial planning capabilities.

Impressive Financial Performance

For the first three quarters of fiscal 2025 (ending 31 July), BMO reported revenue of C$26.9 billion and net income of C$6.4 billion—up 13% and 28% year-over-year. In Q3 alone, revenue grew 9.7% to C$8.9 billion, with net income rising 24.9% to C$2.3 billion.

Provision for credit losses (PCL) declined 12% compared to Q3 of fiscal 2024, indicating improved credit quality.

Darryl White, CEO of BMO Financial Group, stated, 'BMO delivered another quarter of strong earnings growth, with solid revenue performance and good expense management. We continue to invest in sustainable growth, including our recent acquisition of Burgundy Asset Management. We're leveraging our strong balance sheet to support client growth while returning excess capital to shareholders."

Canada's Oldest Bank and Dividend Pioneer

Canada's Big Five banks have paid dividends for over 100 years. BMO, the country's oldest and third-largest bank, and the Toronto Stock Exchange's dividend pioneer—having paid dividends since 1829—boasts a track record of 196 years and counting.

BMO's reliable dividend history makes it attractive to long-term and income-focused investors alike. The bank's stability and strategic growth initiatives position it well for continued investor confidence.

Disclaimer: Our digital media content is for informational purposes only and does not constitute investment advice. Please conduct your own analysis or seek professional guidance before investing. Remember, investments are subject to market risks, and past performance does not guarantee future results.

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