Adjusted earnings hit $3.23 a share, topping forecasts.

Executives at BMO Financial Group say the economic outlook in Canada and the U.S. is becoming steadier, but the bank is still bracing for trade and geopolitical fluctuations in the months ahead.

“Early this year, my uncertainty meter was very high and today it’s less high. It doesn’t mean there’s no uncertainty,” chief executive Darryl White told.

“The confidence in the outlook today is one that’s just a little easier to call than it was six months ago.”

He said trade risks in North America have eased, as most industries are compliant with the Canada-U.S.-Mexico trade agreement and sheltered from U.S. President Donald Trump’s tariffs.

Government support for tariff-affected industries is rolling out and consumer spending has been resilient, White added.

Earlier, BMO said its third-quarter profit rose from a year ago as its provision for credit losses fell.

Net income was $2.33 billion, or $3.14 per diluted share, for the quarter ended July 31, up from $1.87 billion, or $2.48 per diluted share, a year earlier.

Earnings were $3.23 per diluted share on an adjusted basis, up from $2.64 a year earlier.

The average analyst estimate had been for earnings of $2.95 per share, according to LSEG Data & Analytics.

Quarterly revenue totalled $8.99 billion, up from $8.19 billion.

BMO’s provision for credit losses amounted to $797 million for the quarter, compared with $906 million a year earlier.

“Our impaired provisions have been trending down this year in line with our expectations. At the same time, we remain cautious as the full impacts from the current tariff announcements have yet to flow through the economy and the policy environment remains evolving,” chief risk officer Piyush Agrawal said.

BMO Wealth Management had $406 billion in assets under administration as of July 31, up 13% compared to the same time last year, driven by global markets. Assets under management also rose 13%, to $464 billion, primarily from global markets and higher net assets.

BMO’s insurance revenue was $145 million, a 50% increase compared to the third quarter of 2024, primarily due to the sale of a portfolio of insurance contracts during the quarter.

For BMO Capital Markets, total revenue was $1.78 billion for the third quarter, up 7% from the prior year. Global markets revenue rose by $53 million, reflecting higher debt and equity issuances and higher trading revenue. Investment and corporate banking revenue increased $57 million, primarily from gains in underwriting and advisory fee revenue.