Bank of Nova Scotia Acquires $920M Stake in Bank of Montreal

Key Facts

1Bank of Nova Scotia acquired 5,205,604 shares of Bank of Montreal worth approximately $920 million.

2Bank of Montreal reported strong quarterly earnings with an EPS of $2.68 and a 10.2% revenue increase.

3Bank of Montreal raised its quarterly dividend to $1.71 per share, reflecting a 3.9% annual yield.

In a move reflecting institutional confidence in the Canadian banking sector's stability, Bank of Nova Scotia acquired 5,205,604 shares of Bank of Montreal (BMO) for approximately $920 million. This significant acquisition follows BMO's report of strong quarterly financial results, featuring an earnings per share (EPS) of $2.68 and a 10.2% increase in revenue. The purchase has elevated BMO to the 14th largest holding in Bank of Nova Scotia's portfolio.

Per market data, this investment coincides with Bank of Montreal's efforts to enhance shareholder returns, as the bank raised its quarterly dividend to $1.71 per share, reflecting an annual yield of 3.9%. These figures, sourced from analyst reports, underscore the bank's capacity for robust cash flow generation, which has successfully attracted major institutional buy-in to strengthen positions in the stock.

BMO shares stood at $174.43 (at close August 21, 2026), having reached a day high of $176.14. Investors are now looking toward upcoming Canadian economic catalysts, including the annual Inflation Rate data, which recently printed at 3%, as these figures often dictate the broader momentum for financial sector instruments.

Sources:

MarketBeat