$BMO.TO

High Tide to Buy Northern Helm; Secures Credit Approval for C$40 Million of Senior Secured Credit Facilities

High Tide (HITI.V, HITI) agreed to buy 100% of the equity interest of J. Supply Holdings Inc., operating as Northern Helm, resulting in the company's acquisition of four of the six retail cannabis stores currently operated by Northern Helm in Ontario for $7.74 million, it said on Monday.These acquisitions will bring High Tide's total store count to 228 Canna Cabana locations across Canada and 103 in the province of Ontario, it said. The consideration for the 100% of equity interests acquired will be about $3.2 million in assumed debt with a 2% interest rate, with 40% of the remaining amount paid in cash, and the remaining 60% paid in common shares of High Tide on closing on the basis, subject to some terms.In another press release, the company also said it secured credit approval for a loan agreement with Bank of Montreal (BMO.TO, BMO) in respect of new senior secured credit facilities in the principal amount of C$40 million. Closing of the new credit facilities remains subject to some conditions.The new credit facilities will replace its existing senior credit facility, upon closing.U.S.-listed shares of High Tide were last seen up 0.4% at US$2.32 in pre-market trading.

Bank of Montreal Remains Only Canadian Bank Rated Outperformer at CIBC

CIBC Capital Markets made minor revisions to its forward estimates for the Canadian banks following Q2 earnings, and said Bank of Montreal (BMO.TO) is the only stock ranked Outperformer."...We like that call following what we think was the best quarter in the group," analyst Paul Holden said in a note to clients.Holden maintained a price target of $244 on BMO shares."While consensus estimates are moving higher, there is still room to move higher based on BMO's 15% ROE target," the analyst said."The company is showing good execution based on efficiency gains, credit trends, share buybacks (i.e., capital deployment) and now US loan growth," Holden said."We think the upside surprise with US commercial loan growth (+4% Q/Q) plus solid growth in Canada commercial (+2% Q/Q) is exactly what the stock needed to turn sentiment."

BMO Launches New Loyalty Program Blue Rewards

Bank of Montreal (BMO.TO) has launched a new suite of products under the Blue Rewards loyalty program brand, the bank said on Tuesday.The new line, which includes Mastercard credit cards, a chequing account, and commercial cards, is a transition from the Air Miles program and will continue to be operated by a BMO subsidiary a statement said. Existing Reward Miles are automatically converted to Blue Points, with no loss of value, the bank said.Members can earn and redeem Blue Points from brands across Canada, with additional partner earning opportunities and features to be announced throughout the year.BMO shares were last seen up $4.20, to $229.42, on the Toronto Stock Exchange.Price: $229.22, Change: $+4.04, Percent Change: +1.79%

TSX Closer: The Index Closes Higher For The First Time Since Monday's Record Close

The Toronto Stock Exchange closed higher on Thursday, its first winning session since Monday's record close, with the resource-heavy index buoyed by improved commodity prices, a continuing belief among investors that equity market fundamentals are strong, bullish comments from Canada Prime Minister Mark Carney in New York and cautious positivity on the economy from the Bank of Canada.The S&P/TSX Composite Index closeds up 105.65, or 0.3%, to 34,517.70, having lost more than 400 points over the prior two days. Sectors were mixed, with Info Tech up near 2.6% and Base Metals up 2.3%, helped by a higher gold price. In contrast the Battery Metals Index was down 1.15%, Energy eased near 0.5% despite a modest rise in the oil price, and Financial lost 0.8% even as The Canadian Press reported the 'Big Six' banks see reasons for optimism while navigating a 'period of volatility'.Sluggish trade negotiations between Canada and the United States are finally showing faint signs of life as a milestone looms for renewal of their three-way trade deal with Mexico, CBC News reported on Thursday. The minister responsible for Canada-U.S. trade, Dominic LeBlanc, is planning to travel to Washington, D.C., for trade talks, although his spokespeople haven't confirmed a date, the report noted. Although the Canada-U.S.-Mexico Agreement (CUSMA) is due for its first-ever joint review on July 1, LeBlanc has held just one day of in-person talks over the past seven months with his Trump administration counterpart, U.S. Trade Representative Jamieson Greer, he also noted.That report came out as Prime Minister Mark Carney prepared to pitch Canada as an investment hub at New York's Economic Club at lunchtime today.Employing U.S. President Donald Trump's marquee slogan, PM Carney told a New York City business crowd "Canada strong will help make America great again", reported CTV News. It noted the P.M. detailed his economic diversification strategy, and his plans to recalibrate Canada's relationships and reputation. "We're focused on what we can control, and that means weaving a dense web of international partnerships abroad. That's making us a much stronger, more resilient, more independent country," Carney told the business crowd.Meanwhile, the Bank of Canada on Thursday said Canada's financial system has functioned well through a challenging year as households and businesses remain in stable financial condition, and banks have strengthened their capacity to absorb shocks.However, vulnerabilities have increased in some parts of the system, noted the central bank in its annual Financial Stability Report (FSR). Stock and corporate debt valuations have risen and are high relative to historical norms, the central bank said, adding this makes markets more vulnerable to a sharp correction.The Canadian Press is reporting that Canada's major banks say they're cautiously optimistic as their latest earnings beat expectations, with executives confident they're well equipped to handle potential risks in the Canadian economy. The Big Six grew their profits in the second quarter compared with the same three-month period a year ago, while also posting results above analysts' forecasts, the report noted. Five of those; Toronto-Dominion Bank (TD.TO), Royal Bank of Canada (RY.TO), Bank of Nova Scotia (BNS.TO), Bank of Montreal (BMO.TO) and National Bank of Canada (NA.TO) each hiked their quarterly dividend, it also noted.And while executives expressed confidence in their ability to withstand economic challenges ahead, they also acknowledged macroeconomic concerns that could shift their outlooks, according to the report. Those include the U.S.-Iran war that continues to drag on, pushing international oil prices and inflation higher. High unemployment in Canada and ongoing uncertainty over trade with the United States also cloud the outlook, they said.Of commodities, West Texas Intermediate crude oil closed with a small gain, but fell off early highs following reports the U.S. and Iran agreed to extend their ceasefire even as they earlier traded strikes. WTI crude oil for July delivery closed up US$0.22 to settle at $US$88.90 per barrel after earlier touching US$92.52. July Brent oil was down US$0.64 to US$93.65.Gold was higher midafternoon Thursday, rising off its early lows as the dollar and yields fell after reports the United States and Iran have agreed to extend a ceasefire for 60 days, lowering oil prices and easing inflation worries even a key U.S. inflation measure rose in April. Gold for July delivery was up US$52.50 to US$4,4,534.00 per ounce, after earlier touching US$4,395.60.

Bank of Montreal Price Target Raised to $244 at CIBC

CIBC Capital Markets raised its price target on Bank of Montreal (BMO.TO) to $244 from $226.Analyst Paul Holden maintained an Outperformer rating on shares of the Canadian bank following its quarterly results."FQ2 results should strengthen confidence that BMO can achieve its 15% ROE target in F2028, supported by growth in US Banking, improving expense efficiency, and share buybacks," Holden said in a note to clients."We estimate that there is ~5% upside to F2028 consensus EPS if BMO achieves the 15% ROE," the analyst said."Our F2027 EPS estimate increases slightly on higher assumed loan growth," Holden said.

Bank of Montreal Price Target Raised to $230 at RBC

RBC Capital Markets raised its price target on Bank of Montreal (BMO.TO) to $230 from $205 on Thursday.Analyst Darko Mihelic maintained a Sector Perform rating on shares of the Canadian bank following its quarterly results."BMO's Q2/26 results were stronger than expected across most segments, except for Canada," Mihelic said in a note to clients. "We see solid US results and model for better revenue/PPPT growth in that segment.""BMO maintained its stage 3 (impaired) provision for credit loss (PCL) ratio guidance of mid-40s bps for the next few quarters and expects its impaired PCL ratio to improve to mid-30s bps by the end of 2027," the analyst said."We decrease our impaired PCL ratio estimates in 2027 to get closer to this guide as BMO's PCL was better than expected this quarter."

Bank of Montreal Keeps Sector Perform, Target Raised To C$236 From $223 at National Bk After Q2; Notes "Capital Markets Drives the Quarter, But Other Elements Impress"

TSX Closer: The Index Falls for a Second Day After Monday's Record Close Amid Rise In Canadian Credit Stress

The Toronto Stock Exchange closed lower on Wednesday, falling for a second session following Monday's record close, on more profit taking and weak commodity prices, while one analyst said Bank of Nova Scotia's (BNS.TO) credit outlook "becomes more cautious" after it reported fiscal second-quarter earnings and a pair of economists noted credit stress is "rising, not breaking" in Canada.The resources-heavy S&P/TSX Composite Index closed down 241.82 points, or 0.7%, to 34,412.05, adding to the near 170 points lost Tuesday. Most sectors were lower, led by Energy, down 2.35% on lower oil. Base Metals eased about 0.2%, not helped by a drop in the gold price. Among gainers, both Industrials and Telecom rose by about 0.7%, respectively.The Financial sector lost near 0.3% on a day when the trio of Scotiabank, Bank of Montreal (BMO.TO) and National Bank (NA.TO) each reported their respective fiscal Q2 results. Canadian Imperial Bank of Commerce (CM.TO), Royal Bank of Canada (RY.TO) and Toronto-Dominion Bank (TD.TO) will each report theirs Thursday.On Scotiabank, National Bank noted it reported Q2 core cash EPS of $2.02 versus a National Bank estimate of $1.87 and consensus of $1.93. Among key takeaways, National Bank said although Scotiabank beat its, and consensus, expectations, it has a "mixed view" of the quarter. On the positive side, National Bank said the Canadian P&C business delivered its best quarter in a long time, an important "deliverable" vis-a-vis Scotiabank's double-digit EPS growth target for the year. But on the negative side, National Bank said Capital Markets results missed consensus expectations and the bank's guidance range. More importantly, it added, credit losses were higher than expected, which resulted in the adoption of more conservative second half credit performance guidance. National Bank has kept a sector-perform rating and C$106 target on Scotiabank's shares.Still on credit stress in Canada, the National Bank Economics and Strategy Group noted total debt in insolvency reached its highest level since the 2009 financial crisis in the first quarter, according to data from Equifax. Economists Daren King and Matthieu Arseneau said this increase may seem alarming and raises concerns about the financial health of Canadian households. But, they asked, is the situation really as concerning as it seems?To gain a clearer picture, the National Bank duo analyzed data from the Office of the Superintendent of Bankruptcy, which tracks the total number of insolvency filings (bankruptcies and consumer proposals) across the country. They noted this data also shows that the number of insolvencies reached its highest level since the financial crisis in the first quarter. However, King and Arseneau said, two adjustments are necessary to correctly interpret the trend in insolvencies. The first concerns seasonality, since the first half of the year is historically associated with a higher volume of insolvencies. The second involves accounting for the strong population growth observed since 2009, as the Canadian population has increased by approximately 25% over this period.According to the pair, once the data is seasonally adjusted and expressed on a per capita basis, the insolvency rate remains well below the peak reached in the wake of the financial crisis and is even below its pre-pandemic level of 2019. They said the upward trend observed since 2022 therefore reflects a normalization from an exceptionally low pandemic trough rather than a widespread breakdown in household credit. This does not mean, however, that the situation should be downplayed, they added."The rise in the insolvency rate over the past year reflects a more fragile labour market, high interest rates, and a still-high cost of living, particularly for housing, food, and energy, which continue to put pressure on many households. However, the data does not support the narrative of systemic credit risk suggested by some media headlines. The most accurate interpretation remains more nuanced: financial strains are increasing, but their magnitude remains moderate by historical standards for now," King and Arseneau said.Of commodities, West Texas Intermediate crude oil plunged 5.6% on expectations the United States and Iran are nearing a deal to reopen the Strait of Hormuz and end the largest-ever energy supply shock. WTI crude oil for July delivery closed down US$5.21 to settle at US$88.68 per barrel, the lowest since April 20, while July Brent oil was down US$5.30 to US$94.28.Also, gold fell to a two-month low, even as the dollar dipped and oil prices weakened ahead of an expected peace deal to end the war on Iran, easing inflation worries. Gold for July delivery was down US$52.60 to US$4,482.40 per ounce, the lowest since March 26.

National Bank In Q2 First Look At BMO Notes Capital Markets "Drives the Beat" and U.S. Loan Book Rebounds; National Bk Has Sector Perform, $223 Target on BMO

Update: BMO Jumps Premarket After Q2 Adjusted Earnings Beat, Lower Credit Losses, Dividend Increase

(with update on performance of different units from paragraph 11)Bank of Montreal (BMO.TO, BMO) was last seen up 3.2% in New York premarket trading Wednesday as it increased its dividend while reporting an adjusted earnings beat for the second-quarter, reflecting increased earnings in most of its operating segments, while the bank said provision for credit losses was lower.For Q2, BMO reported adjusted EPS of $3.67, an increase of 40% from $2.62. FactSet estimated EPS to reach $3.45. It had adjusted net income of $2,733 million, an increase of 34% from $2,046 million.The bank reported net income of $2,630 million, an annual increase of 34% from $1,962 million in the same period last year.BMO had revenues of $9,567 million compared to $8,679 million. FactSet had forecast $9,485.7 million.Among other highlights, it had total provisions for credit losses (PCL) of $739 million, compared with $1,054 million. The PCL on impaired loans was $734 million, a decrease of $31 million, primarily due to lower provisions in capital markets and the U.S. banking. While the PCL on performing loans was $5 million, compared with $289 million in the prior year."The performing provision in the current quarter was primarily driven by the net impact of model changes, largely offset by portfolio credit migration and lower portfolio balances, while the prior year reflected changes in the macroeconomic environment," the bank said.BMO reported return on equity (ROE) of 13%, compared with 9.4%, and adjusted ROE of 13.5%, compared with 9.8%.The bank also declared a quarterly dividend of $1.71 per common share, an increase of $0.08 or 5% from the prior year and $0.04 or 2% from the prior quarter."Our second quarter results continued to demonstrate meaningful progress and momentum against these commitments. We once again strengthened ROE and delivered strong EPS growth, driven by robust fee revenue across Capital Markets, Wealth Management and Treasury and Payments. We delivered solid sequential commercial banking loan growth in both Canada and the United States, reflecting improving client activity and the strength of our bankers. These outcomes are driven by our focus on deepening client relationships, innovating to drive business value, and optimizing performance," said Darryl White, CEO of BMO Financial Group."Our value-driven approach to human- and AI-powered client experiences is delivering tangible benefits. To continue to advance our innovation strategy, we recently established the BMO Institute for Applied Artificial Intelligence & Quantum, dedicated to the responsible application, governance and oversight of AI at scale, and support our clients as they integrate AI into their companies and households. Disciplined investment, capital and risk management continue to strengthen our earnings quality, creating sustainable long-term value for our shareholders," added White.On operations, BMO said its Canadian Personal and Commercial banking unit reported net income was $884 million, an increase of $120 million or 15% from the prior year, and adjusted net income was $887 million, an increase of $119 million or 15%, primarily due to a 5% increase in revenue, as well as a lower provision for credit losses, partially offset by higher expenses.Revenue growth was driven by "increases in net interest income, primarily due to higher net interest margin, and non-interest revenue due to higher card-related and mutual fund distribution fees, partially offset by lower deposit fee revenue", the bank said.Its U.S. Banking reported net income was $790 million, an increase of $189 million or 32% from the prior year, and adjusted net income was $847 million, an increase of $172 million or 25%. The impact of the weaker U.S. dollar decreased net income by 5%, revenue by 4% and expenses by 3%, BMO said.While the Wealth Management unit reported net income was $428 million, an increase of $108 million or 34% from the prior year, and adjusted net income was $444 million, an increase of $124 million or 39%.Capital Markets reported net income of $638 million, an increase of $204 million or 47% from the prior year, and adjusted net income was $641 million, an increase of $204 million or 46%. It reflected higher revenue in Global Markets and Investment and Corporate Banking, and a lower provision for credit losses, partially offset by higher expenses, BMO noted.However, Corporate Services sector reported net loss was $110 million, compared with a reported net loss of $157 million in the prior year, and adjusted net loss was $86 million, compared with an adjusted net loss of $154 million, with "changes driven by higher treasury-related revenue".Shares of the bank were last up US$5.15 at US$166.99 on the NYSE on Thursday. They closed down C$0.89 at C$233.64 in Toronto on Tuesday.

BMO Jumps Near 5% Premarket After Q2 Adjusted Earnings Beat, Lower Credit Losses, Dividend Increase

Bank of Montreal (BMO.TO, BMO) was last seen up 4.9% in New York premarket trading Wednesday as it increased its dividend while reporting an adjusted earnings beat for the second-quarter, reflecting increased earnings in most of its operating segments, while the bank said provision for credit losses was lower.For Q2, BMO reported adjusted EPS of $3.67, an increase of 40% from $2.62. FactSet estimated EPS to reach $3.45. It had adjusted net income of $2,733 million, an increase of 34% from $2,046 million.The bank reported net income of $2,630 million, an annual increase of 34% from $1,962 million in the same period last year.BMO had revenues of $9,567 million compared to $8,679 million. FactSet had forecast $9,485.7 million.Among other highlights, it had total provisions for credit losses (PCL) of $739 million, compared with $1,054 million. The PCL on impaired loans was $734 million, a decrease of $31 million, primarily due to lower provisions in capital markets and the U.S. banking. While the PCL on performing loans was $5 million, compared with $289 million in the prior year."The performing provision in the current quarter was primarily driven by the net impact of model changes, largely offset by portfolio credit migration and lower portfolio balances, while the prior year reflected changes in the macroeconomic environment," the bank said.BMO reported return on equity (ROE) of 13%, compared with 9.4%, and adjusted ROE of 13.5%, compared with 9.8%.The bank also declared a quarterly dividend of $1.71 per common share, an increase of $0.08 or 5% from the prior year and $0.04 or 2% from the prior quarter."Our second quarter results continued to demonstrate meaningful progress and momentum against these commitments. We once again strengthened ROE and delivered strong EPS growth, driven by robust fee revenue across Capital Markets, Wealth Management and Treasury and Payments. We delivered solid sequential commercial banking loan growth in both Canada and the United States, reflecting improving client activity and the strength of our bankers. These outcomes are driven by our focus on deepening client relationships, innovating to drive business value, and optimizing performance," said Darryl White, CEO of BMO Financial Group."Our value-driven approach to human- and AI-powered client experiences is delivering tangible benefits. To continue to advance our innovation strategy, we recently established the BMO Institute for Applied Artificial Intelligence & Quantum, dedicated to the responsible application, governance and oversight of AI at scale, and support our clients as they integrate AI into their companies and households. Disciplined investment, capital and risk management continue to strengthen our earnings quality, creating sustainable long-term value for our shareholders," added White.Shares of the bank were last up US$7.96 at US$169.80 on the NYSE on Thursday. They closed down C$0.89 at C$233.64 in Toronto on Tuesday.

Earnings Flash (BMO.TO) BMO Financial Group Reports Q2 Adjusted Net Income of $2,733M, Up 34% YoY

Bank of Montreal Q2 Common Equity Tier 1 Ratio of 13.0%, Compared With 13.5%

Bank of Montreal Q2 Declared a quarterly dividend of $1.71 per common share, an increase of $0.08 or 5% from the prior year

Bank of Montreal Q2 Provision for Credit Losses of $739M, a Decrease From $1,054M

Bank of Montreal Q2 adjusted EPS of $3.67, an increase of 40% from $2.62

TSX Closer: The Index Falls From a Record Close Ahead of Canada's Banks Earnings Season

The resources-heavy Toronto Stock Exchange closed lower on Tuesday, falling off the record high set a day earlier on some profit taking and weaker commodity prices, while nagging economic concerns continue to weigh, with Canada's big banks facing rising insolvencies amid a weak housing market and National Bank saying Ottawa's trade-diversification target has a scale problem.The S&P/TSX Composite Index fell 177.02 points, or 0.5%, to 34,653.87. Most sectors were higher, led by the Battery Metals Index, up 5.5%, and Base Metals, up 2%, despite a lower gold price. Decliners were led by Info Tech, down 1.6%, and Health Care, down 1.3%.Financials was also down 0.5% ahead of the start of bank earnings season on Wednesday.Profits at Canada's largest banks are expected to have increased despite trade tensions, the Middle East conflict and broader economic uncertainty, but now face tougher tests as more consumers struggle to pay debts and a subdued housing market weighs on their core domestic business, according to a Reuters preview.The big banks; Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO), Bank of Montreal (BMO.TO), Bank of Nova Scotia (BNS.TO), Canadian Imperial Bank of Commerce (CM.TO) and National Bank of Canada (NA.TO), which together control more than 90% of the market, are expected to report strong second-quarter earnings starting on Wednesday, helped by trading revenue and their capital markets businesses, Reuters said."Banks have been beating expectations consistently for the past two years, With credit losses stubbornly elevated and margin expansion potentially stalling this quarter, the onus falls on the capital markets business to deliver, yet again," National Bank analyst Gabriel Dechaine is cited as saying.On the economy, National Bank said Statistics Canada's 2025 goods exporter data underscore the scale problem embedded in Ottawa's ambition to double non-U.S. exports within the next decade. The bank cited a chart that shows Canada counts nearly 48,000 goods exporting enterprises, but 82% of them employ fewer than 50 workers despite accounting for only 14.3% of total goods exports, while firms with 500 or more employees represent a tiny fraction of exporters but close to 60% of export value."This is not a marginal complication. Diversification is not simply a matter of redirecting shipments away from the U.S. market; it requires financing, compliance capacity, distribution networks, foreign-market intelligence, currency-risk management and the ability to withstand a long sales cycle before new relationships become profitable," National Bank said."For smaller firms, the constraint is structural because many are embedded in North American supply chains built around proximity, recurring customer relationships, integrated logistics and production specifications that are not easily replicated overseas."National Bank added: "The irony is that Ottawa's target may be easier to meet in aggregate than in substance. Canada can raise non-U.S. export values through commodities and other scale-intensive sectors where global demand is deep and output is more readily redirected across markets. But that path does less for the employment-intensive parts of the export base, where supply-chain links are stickier and diversification costs are proportionally higher. The result is a policy tension that could be masked by headline GDP. A resource-led export pivot may improve the arithmetic of diversification while smaller exporters face higher costs, thinner margins and greater risk of lost capacity. If building scale is part of the desired outcome, then trade policy cannot be separated from the domestic incentives that shape firm size, including the small-business tax kink highlighted in our MCIA/RBI work."Of commodities, gold edged lower by midafternoon Tuesday even as the dollar and yields fell as fresh U.S. strikes on Iran heightened concerns over the progress of peace talks between the two countries. Gold for July delivery was down US$16.90 to US$4,539.50 per ounce.Also, West Texas Intermediate crude oil closed lower on uncertainty around geopolitical tensions across the Middle East. WTI crude oil for July delivery closed down US$2.71 to settle at US$93.89 per barrel, while July Brent oil was last seen up US$3.40 to US$99.54.

Canadian Banks Still Priced For Positive EPS Surprises, National Bank Says in a Q2 Preview

Bank stocks are up 13% so far this year, outperforming the S&P/TSX by 550 basis points, notes National Bank in its second-quarter earnings preview of the sector.Analyst Gabriel Dechaine writes that since the end of the first-quarter reporting season, Canadian banks have outperformed the market by 800 bps."Betting against the banks has been unwise, with them consistently beating expectations over the past two years," he warns, adding that, trading at 14x on forward EPS, the group is priced for positive EPS surprises or revisions. Barring a margin or credit surprise, the onus falls on the Capital Markets to deliver this outcome, which isn't impossible considering several favorable market conditions.Dechaine's top picks are Royal Bank of Canada (RY.TO) and Toronto-Dominion Bank (TD.TO).The U.S. loan growth factor would also be supportive of BMO (BMO.TO), considering the importance of its U.S. P&C segment's top-line expansion towards achieving the 12% ROE mark sometime in 2027, Dechaine adds.Price: $251.72, Change: $-0.71, Percent Change: -0.28%

CIBC Says Strong Earnings From Banks Due to Capital Markets in Q2 Preview, Downgrades National Bank

CIBC recommends investors rotate money out of banks into lifecos, even as it expects a strong second-quarter earnings from the sector when it starts reporting on May 27. Analyst Paul Holden, who notes that the strong earnings will be predominately based on capital markets activity, has also downgraded National Bank (NA.TO) to neutral.Holden says the credit outlook is incrementally worse and he is getting more cautious on credit losses given the weakness in Canadian unemployment, a soft housing market in the GTA, and industry credit metrics. Loan growth is expected to remain muted and net interest margin is also likely to be less of a tailwind this quarter. "We would not be surprised to see the banks report EPS beats again this quarter, but perhaps like the U.S. banks, capital markets-driven beats will no longer be good enough to drive the stocks higher."National Bank is downgraded to neutral from outperform, with Holden pointing out that "two years' worth of returns were delivered in three months". The stock is up ~20% in the past three months and is now trading at the highest multiple in the group (9% premium on F2027 consensus). Fiscal 2028 consensus estimates are giving full credit for ROE expansion, Holden adds.BMO (BMO.TO) is Holden's only outperformer-rated bank as there is still upside potential to consensus estimates relative to its 15% ROE target. "With the recovery in U.S. commercial loan growth, there is also a possibility that U.S. balance sheet growth comes in higher than expected. We also think the relative skew to the U.S. can help with impaired PCLs in the near term."BMO is trading at a 5% discount to the group average P/E and a strong quarter that demonstrates continued progress towards ROE targets should help the stock.Price: $203.95, Change: $-0.69, Percent Change: -0.34%

Brookfield Corporation Distributable Earnings Before Realizations US$0.59 and After $0.66