Question · Q4 2025
Darko Mihalik asked for clarification on the corporate segment's better-than-typical performance in the quarter and whether any unique actions or factoring impacted it. He also inquired about the Nonbank Financial Institutions (NBFI) portfolio, specifically if there were losses in parts other than equity subscription loans and if NBFI lending contributed to higher losses in 2024 and 2025.
Answer
Darryl White, CEO of BMO Financial Group, stated that no unique actions or triggers, such as ladder investments, caused the corporate segment's outperformance, attributing it to good management of liquidity and low-yielding assets. Piyush Agrawal, Chief Risk Officer, described the NBFI portfolio as highly profitable and well-diversified, with equity subscription lines (50% of the portfolio) having no losses over 30 years. He noted that the overall NBFI loss rate over 10 years was one basis point, with some losses from the insurance sector disclosed two years prior, emphasizing its well-secured, high-performing nature.
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