BMO Financial Group Reports Second Quarter 2024 Results
BMO Financial Group reported second quarter 2024 results with net income of $1,866 million, up from $1,029 million in the same period last year. Adjusted net income was $2,033 million, down from $2,186 million. Reported EPS rose to $2.36 from $1.26, while adjusted EPS decreased to $2.59 from $2.89. The provision for credit losses dropped to $705 million from $1,023 million. ROE increased to 9.9% from 5.5%, but adjusted ROE fell to 10.9% from 12.6%. The CET1 ratio improved to 13.1% from 12.2%. A quarterly dividend of $1.55 per common share was declared, up 5% from last year.
Year-to-date net income reached $3,158 million, compared to $1,162 million last year; adjusted net income was $3,926 million, down from $4,344 million. Reported EPS rose to $4.08 from $1.42, while adjusted EPS fell to $5.14 from $5.94. The provision for credit losses amounted to $1,332 million, up from $1,240 million. ROE increased to 8.5% from 3.0%, but adjusted ROE decreased to 10.7% from 12.8%.
CEO Darryl White emphasized strong earnings growth, good operating leverage, and a solid balance sheet, despite economic challenges. BMO was recognized by Fast Company as one of the World's Most Innovative Companies of 2024.
- Net income for Q2 2024 increased to $1,866 million from $1,029 million in Q2 2023.
- Reported EPS for Q2 2024 rose to $2.36 from $1.26 in Q2 2023.
- Provision for credit losses declined significantly to $705 million from $1,023 million.
- ROE for Q2 2024 improved to 9.9% from 5.5%.
- Common Equity Tier 1 (CET1) Ratio increased to 13.1% from 12.2%.
- Declared a quarterly dividend of $1.55 per share, up 5% year-over-year.
- Year-to-date net income climbed to $3,158 million from $1,162 million.
- Reported EPS year-to-date increased to $4.08 from $1.42.
- BMO was recognized among Fast Company's World's Most Innovative Companies of 2024.
- Adjusted net income for Q2 2024 decreased to $2,033 million from $2,186 million.
- Adjusted EPS for Q2 2024 fell to $2.59 from $2.89.
- Adjusted ROE for Q2 2024 dropped to 10.9% from 12.6%.
- Year-to-date adjusted net income decreased to $3,926 million from $4,344 million.
- Year-to-date adjusted EPS fell to $5.14 from $5.94.
- Provision for credit losses increased to $1,332 million year-to-date from $1,240 million.
- Year-to-date adjusted ROE decreased to 10.7% from 12.8%.
Insights
BMO Financial Group's second-quarter results show a significant improvement in net income, rising to
The Provision for Credit Losses (PCL) decreased to
The Common Equity Tier 1 (CET1) Ratio improved to 13.1%, showcasing a robust balance sheet and greater financial stability. The Return on Equity (ROE) also rose to 9.9% from 5.5%, although the adjusted ROE of 10.9% is slightly lower compared to last year's 12.6%. This means the company is making better use of its equity than before, but without adjustments, the performance might seem more resilient.
The dividend increase to
BMO Financial Group's focus on Canadian personal and commercial banking, along with strengthening performance in Capital Markets and wealth businesses, indicates a diversified revenue stream. CEO Darryl White highlighted the company's efforts to position itself for long-term growth, particularly in the U.S. market. This strategy appears to be paying off, as evidenced by the pre-provision, pre-tax earnings growth in the U.S. Segment.
The ranking among Fast Company's list of the World's Most Innovative Companies of 2024 is a noteworthy accolade, emphasizing the tangible benefits of BMO's investments in innovative technologies. This recognition could enhance the bank’s brand value and attract tech-savvy customers, giving it a competitive edge.
Nevertheless, investors should remain aware of external factors such as prolonged high interest rates and a slowing economy, which could affect BMO’s future performance and market conditions.
BMO's Second Quarter 2024 Report to Shareholders, including the unaudited interim consolidated financial statements for the period ended April 30, 2024 are available online at www.bmo.com/investorrelations and at www.sedarplus.ca.
Second Quarter 2024 compared with Second Quarter 2023:
- Net income of
$1,866 million $1,029 million $2 $2 - Reported earnings per share (EPS)3 of
$2.36 , compared with$1.26 ; adjusted EPS1, 2, 3 of$2.59 , compared with$2.89 - Provision for credit losses (PCL) of
$705 million , compared with$1 $318 million - Return on equity (ROE) of
9.9% , compared with5.5% ; adjusted ROE1, 2 of10.9% , compared with12.6% - Common Equity Tier 1 (CET1) Ratio4 of
13.1% , compared with12.2% - Declared a quarterly dividend of
$1.55 $0.08 5% from the prior year and$0.04 3% from the prior quarter
Year-to-Date 2024 compared with Year-to-Date 2023:
- Net income of
$3,158 million $1,162 million $3 $4 - Reported EPS3 of
$4.08 , compared with$1.42 ; adjusted EPS1,2,3 of$5.14 , compared with$5.94 - PCL of
$1 $1 $535 million - ROE of
8.5% , compared with3.0% ; adjusted ROE1,2 of10.7% , compared with12.8%
Adjusted1, 2 results in the current quarter and the prior year excluded the following items:
- Impact of an incremental
U.S. Federal Deposit Insurance Corporation (FDIC) special assessment of$50 million $67 million - Acquisition and integration costs of
$26 million $36 million $549 million $727 million - Amortization of acquisition-related intangible assets of
$79 million $107 million $85 million $115 million - Impact of a lawsuit associated with a predecessor bank, M&I Marshall and Ilsley Bank, of
$12 million $15 million $6 million $7 million - Initial provision for credit losses of
$517 million $705 million
"This quarter, we achieved strong pre-provision, pre-tax earnings growth and positive operating leverage, driven by continued momentum in Canadian personal and commercial banking and strengthening performance in our Capital Markets and wealth businesses. We've delivered on our commitments with expenses down, compared with last year and last quarter. Our balance sheet strength is evident in a CET1 ratio above
"We continue to position the bank for long-term growth. Our
The foregoing section contains forward-looking statements. Please refer to the Caution Regarding Forward-Looking Statements.
(1) | Results and measures in this document are presented on a generally accepted accounting principles (GAAP) basis. They are also presented on an adjusted basis that excludes the impact of certain specified items from reported results. Adjusted results and ratios are non-GAAP and are detailed for all reported periods in the Non-GAAP and Other Financial Measures section. For details on the composition of non-GAAP amounts, measures and ratios, as well as supplementary financial measures, refer to the Glossary of Financial Terms in our Second Quarter 2024 Report to Shareholders. |
(2) | Effective the first quarter of 2024, the bank adopted IFRS 17, Insurance Contracts (IFRS 17), and retrospectively applied it to fiscal 2023 results and opening retained earnings as at November 1, 2022. For further information, refer to the Changes in Accounting Policies section in our Second Quarter 2024 Report to Shareholders. |
(3) | All EPS measures in this document refer to diluted EPS, unless specified otherwise. |
(4) | The CET1 Ratio is disclosed in accordance with the Capital Adequacy Requirements (CAR) Guideline, as set out by the Office of the Superintendent of Financial Institutions (OSFI), as applicable. |
Note: All ratios and percentage changes in this document are based on unrounded numbers. | |
Concurrent with the release of results, BMO announced a third quarter 2024 dividend of
Adjusted results and ratios in this section are on a non-GAAP basis. Refer to the Non-GAAP and Other Financial Measures section for further information on adjusting items. The order in which the impact on net income is discussed in this section follows the order of revenue, expenses and provision for credit losses, regardless of their relative impact.
Reported net income was
Reported net income was
On a
Reported net income was
Reported net income was
Reported net loss was
BMO's Common Equity Tier 1 Ratio was
Total provision for credit losses was
Refer to the Critical Accounting Estimates and Judgments section of BMO's 2023 Annual Report and Note 4 of our audited annual consolidated financial statements for further information on the allowance for credit losses as at October 31, 2023.
BMO's continuous disclosure materials, including interim filings, annual Management's Discussion and Analysis and audited annual consolidated financial statements, Annual Information Form and Notice of Annual Meeting of Shareholders and Proxy Circular, are available on our website at www.bmo.com/investorrelations, on the Canadian Securities Administrators' website at www.sedarplus.ca, and on the EDGAR section of the U.S. Securities and Exchange Commission's website at www.sec.gov. Information contained in or otherwise accessible through our website (www.bmo.com), or any third-party websites mentioned herein, does not form part of this document.
Bank of Montreal uses a unified branding approach that links all of the organization's member companies. Bank of Montreal, together with its subsidiaries, is known as BMO Financial Group. In this document, the names BMO and BMO Financial Group, as well as the words "bank", "we" and "our", mean Bank of Montreal, together with its subsidiaries. |
Bank of Montreal's public communications often include written or oral forward-looking statements. Statements of this type are included in this document and may be included in other filings with Canadian securities regulators or the
By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that our assumptions may not be correct, and that actual results may differ materially from such predictions, forecasts, conclusions or projections. We caution readers of this document not to place undue reliance on our forward-looking statements, as a number of factors – many of which are beyond our control and the effects of which can be difficult to predict – could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.
The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: general economic and market conditions in the countries in which we operate, including labour challenges; the anticipated benefits from acquisitions, including Bank of the West, are not realized; changes to our credit ratings; the emergence or continuation of widespread health emergencies or pandemics, and their impact on local, national or international economies, as well as their heightening of certain risks that may affect our future results; cyber and cloud security, including the threat of data breaches, hacking, identity theft and corporate espionage, as well as the possibility of denial of service resulting from efforts targeted at causing system failure and service disruption; technology resiliency; failure of third parties to comply with their obligations to us; political conditions, including changes relating to, or affecting, economic or trade matters; climate change and other environmental and social risks; the Canadian housing market and consumer leverage; inflationary pressures; global supply-chain disruptions; technological innovation and competition; changes in monetary, fiscal or economic policy; changes in laws, including tax legislation and interpretation, or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs and capital requirements; weak, volatile or illiquid capital or credit markets; the level of competition in the geographic and business areas in which we operate; exposure to, and the resolution of, significant litigation or regulatory matters, our ability to successfully appeal adverse outcomes of such matters and the timing, determination and recovery of amounts related to such matters; the accuracy and completeness of the information we obtain with respect to our customers and counterparties; our ability to execute our strategic plans, complete proposed acquisitions or dispositions and integrate acquisitions, including obtaining regulatory approvals; critical accounting estimates and judgments, and the effects of changes in accounting standards, rules and interpretations on these estimates; operational and infrastructure risks, including with respect to reliance on third parties; global capital markets activities; the possible effects on our business of war or terrorist activities; natural disasters and disruptions to public infrastructure, such as transportation, communications, power or water supply; and our ability to anticipate and effectively manage risks arising from all of the foregoing factors.
We caution that the foregoing list is not exhaustive of all possible factors. Other factors and risks could adversely affect our results. For more information, please refer to the discussion in the Risks That May Affect Future Results section, and the sections related to credit and counterparty, market, insurance, liquidity and funding, operational non-financial, legal and regulatory, strategic, environmental and social, and reputation risk, in the Enterprise-Wide Risk Management section of BMO's 2023 Annual Report, and the Risk Management section in in our Second Quarter 2024 Report to Shareholders, all of which outline certain key factors and risks that may affect our future results. Investors and others should carefully consider these factors and risks, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. We do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by the organization or on its behalf, except as required by law. The forward-looking information contained in this document is presented for the purpose of assisting shareholders and analysts in understanding our financial position as at and for the periods ended on the dates presented, as well as our strategic priorities and objectives, and may not be appropriate for other purposes.
Material economic assumptions underlying the forward-looking statements contained in this document include those set out in the Economic Developments and Outlook section of BMO's 2023 Annual Report, as updated in the Economic Developments and Outlook section and the Risk Management - Update on General Economic Conditions section in our Second Quarter 2024 Report to Shareholders, as well as in the Allowance for Credit Losses section of BMO's 2023 Annual Report, as updated in the Allowance for Credit Losses section in our Second Quarter 2024 Report to Shareholders. Assumptions about the performance of the Canadian and
Results and measures in this document are presented on a generally accepted accounting principles (GAAP) basis. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from our audited annual consolidated financial statements and our unaudited interim consolidated financial statements, prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board. References to GAAP mean IFRS. We use a number of financial measures to assess our performance, as well as the performance of our operating segments, including amounts, measures and ratios that are presented on a non‑GAAP basis, as described below. We believe that these non‑GAAP amounts, measures and ratios, read together with our GAAP results, provide readers with a better understanding of how management assesses results.
Non-GAAP amounts, measures and ratios do not have standardized meanings under GAAP. They are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, or as a substitute for, GAAP results.
Certain information contained in BMO's Management's Discussion and Analysis dated May 29, 2024 for the period ended April 30, 2024 (Second Quarter 2024 Report to Shareholders) is incorporated by reference into this document. For further details on the composition of non-GAAP amounts, measures and ratios, including supplementary financial measures, please refer to the Glossary of Financial Terms section in our Second Quarter 2024 Report to Shareholders which is available at www.sedarplus.ca.
Our non‑GAAP measures broadly fall into the following categories:
Management considers both reported and adjusted results and measures to be useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non‑interest expense, provision for credit losses and income taxes, as detailed in the following table. Adjusted results and measures presented in this document are non‑GAAP. Presenting results on both a reported basis and an adjusted basis permits readers to assess the impact of certain items on results for the periods presented, and to better assess results excluding those items that may not be reflective of ongoing business performance. As such, the presentation may facilitate readers' analysis of trends. Except as otherwise noted, management's discussion of changes in reported results in this document applies equally to changes in the corresponding adjusted results.
Tangible common equity is calculated as common shareholders' equity, less goodwill and acquisition-related intangible assets, net of related deferred tax liabilities. Return on tangible common equity is commonly used in the North American banking industry and is meaningful because it measures the performance of businesses consistently, whether they were acquired or developed organically.
For periods prior to November 1, 2022, we presented adjusted revenue on a basis that is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB), and our efficiency ratio and operating leverage were calculated on a similar basis. Measures and ratios presented on a basis net of CCPB are non-GAAP amounts. For more information, refer to the Insurance Claims, Commissions and Changes in Policy Benefit Liabilities section of the 2023 Annual MD&A. Beginning the first quarter of 2023, we no longer report CCPB given the adoption and retrospective application of IFRS 17, Insurance Contracts (IFRS 17).
This Non-GAAP and Other Financial Measures section contains forward-looking statements. Please refer to the Caution Regarding Forward-Looking Statements.
Non-GAAP and Other Financial Measures
(Canadian $ in millions, except as noted) | Q2-2024 | Q1-2024 | Q2-2023 | YTD-2024 | YTD-2023 |
Reported Results | |||||
Net interest income | 4,515 | 4,721 | 4,814 | 9,236 | 8,835 |
Non-interest revenue | 3,459 | 2,951 | 2,975 | 6,410 | 4,053 |
Revenue | 7,974 | 7,672 | 7,789 | 15,646 | 12,888 |
Provision for credit losses | (705) | (627) | (1,023) | (1,332) | (1,240) |
Non-interest expense | (4,844) | (5,389) | (5,501) | (10,233) | (9,883) |
Income before income taxes | 2,425 | 1,656 | 1,265 | 4,081 | 1,765 |
Provision for income taxes | (559) | (364) | (236) | (923) | (603) |
Net income | 1,866 | 1,292 | 1,029 | 3,158 | 1,162 |
Diluted EPS ($) | 2.36 | 1.73 | 1.26 | 4.08 | 1.42 |
Adjusting Items Impacting Revenue (Pre-tax) | |||||
Management of fair value changes on the purchase of Bank of the West (1) | - | - | - | - | (2,011) |
Legal provision (recorded in revenue) (2) | (14) | (14) | (7) | (28) | (13) |
Impact of loan portfolio sale (3) | - | (164) | - | (164) | - |
Impact of adjusting items on revenue (pre-tax) | (14) | (178) | (7) | (192) | (2,024) |
Adjusting Items Impacting Provision for Credit Losses (Pre-tax) | |||||
Initial provision for credit losses on purchased performing loans (pre-tax) (4) | - | - | (705) | - | (705) |
Adjusting Items Impacting Non-Interest Expense (Pre-tax) | |||||
Acquisition and integration costs (5) | (36) | (76) | (727) | (112) | (966) |
Amortization of acquisition-related intangible assets (6) | (107) | (112) | (115) | (219) | (123) |
Legal provision (including legal fees) (2) | (1) | (1) | - | (2) | (2) |
FDIC special assessment (7) | (67) | (417) | - | (484) | - |
Impact of adjusting items on non-interest expense (pre-tax) | (211) | (606) | (842) | (817) | (1,091) |
Impact of adjusting items on reported net income (pre-tax) | (225) | (784) | (1,554) | (1,009) | (3,820) |
Adjusting Items Impacting Revenue (After-tax) | |||||
Management of fair value changes on the purchase of Bank of the West (1) | - | - | - | - | (1,461) |
Legal provision (including related interest expense and legal fees) (2) | (11) | (10) | (6) | (21) | (11) |
Impact of loan portfolio sale (3) | - | (136) | - | (136) | - |
Impact of adjusting items on revenue (after-tax) | (11) | (146) | (6) | (157) | (1,472) |
Adjusting Items Impacting Provision for Credit Losses (After-tax) | |||||
Initial provision for credit losses on purchased performing loans (after-tax) (4) | - | - | (517) | - | (517) |
Adjusting Items Impacting Non-Interest Expense (After-tax) | |||||
Acquisition and integration costs (5) | (26) | (57) | (549) | (83) | (730) |
Amortization of acquisition-related intangible assets (6) | (79) | (84) | (85) | (163) | (91) |
Legal provision (including related interest expense and legal fees) (2) | (1) | (1) | - | (2) | (1) |
FDIC special assessment (7) | (50) | (313) | - | (363) | - |
Impact of adjusting items on non-interest expense (after-tax) | (156) | (455) | (634) | (611) | (822) |
Adjusting Items Impacting Provision for Income Taxes (After-tax) | |||||
Impact of Canadian tax measures (8) | - | - | - | - | (371) |
Impact of adjusting items on reported net income (after-tax) | (167) | (601) | (1,157) | (768) | (3,182) |
Impact on diluted EPS ($) | (0.23) | (0.83) | (1.63) | (1.06) | (4.52) |
Adjusted Results | |||||
Net interest income | 4,529 | 4,735 | 4,821 | 9,264 | 9,231 |
Non-interest revenue | 3,459 | 3,115 | 2,975 | 6,574 | 5,681 |
Revenue | 7,988 | 7,850 | 7,796 | 15,838 | 14,912 |
Provision for credit losses | (705) | (627) | (318) | (1,332) | (535) |
Non-interest expense | (4,633) | (4,783) | (4,659) | (9,416) | (8,792) |
Income before income taxes | 2,650 | 2,440 | 2,819 | 5,090 | 5,585 |
Provision for income taxes | (617) | (547) | (633) | (1,164) | (1,241) |
Net income | 2,033 | 1,893 | 2,186 | 3,926 | 4,344 |
Diluted EPS ($) | 2.59 | 2.56 | 2.89 | 5.14 | 5.94 |
(1) | Reported net income in Q1-2023 included losses of |
(2) | Reported net income included the impact of a lawsuit associated with a predecessor bank, M&I Marshall and Ilsley Bank: Q2-2024 included |
(3) | Reported net income in Q1-2024 included a net accounting loss on the sale of a portfolio of recreational vehicle loans related to balance sheet optimization of |
(4) | Reported net income in Q2-2023 included an initial provision for credit losses of |
(5) | Reported net income included acquisition and integration costs, recorded in non-interest expense. Costs related to the acquisition of Bank of the West were recorded in Corporate Services: Q2-2024 included |
(6) | Reported net income included amortization of acquisition-related intangible assets recorded in non-interest expense in the related operating group: Q2-2024 included |
(7) | Reported net income included the impact of a |
(8) | Reported net income in Q1-2023 included a one-time tax expense of |
Certain comparative figures have been reclassified to conform with the current period's presentation. | |
Summary of Reported and Adjusted Results by Operating Segment
BMO Wealth | BMO Capital | Corporate | ||||||
(Canadian $ in millions, except as noted) | Canadian P&C | Total P&C | Management | Markets | Services | Total Bank | (US$ in millions) | |
Q2-2024 | ||||||||
Reported net income (loss) | 872 | 543 | 1,415 | 320 | 459 | (328) | 1,866 | 559 |
Acquisition and integration costs | 2 | - | 2 | - | 2 | 22 | 26 | 17 |
Amortization of acquisition-related intangible assets | 3 | 69 | 72 | 2 | 5 | - | 79 | 54 |
Legal provision (including related interest expense | - | - | - | - | - | 12 | 12 | 9 |
Impact of FDIC special assessment | - | - | - | - | - | 50 | 50 | 37 |
Adjusted net income (loss) (2) | 877 | 612 | 1,489 | 322 | 466 | (244) | 2,033 | 676 |
Q1-2024 | ||||||||
Reported net income (loss) | 921 | 560 | 1,481 | 240 | 393 | (822) | 1,292 | 184 |
Acquisition and integration costs | 1 | - | 1 | - | 10 | 46 | 57 | 39 |
Amortization of acquisition-related intangible assets | 3 | 75 | 78 | 1 | 5 | - | 84 | 59 |
Legal provision (including related interest expense | - | - | - | - | - | 11 | 11 | 8 |
Impact of loan portfolio sale | - | - | - | - | - | 136 | 136 | 102 |
Impact of FDIC special assessment | - | - | - | - | - | 313 | 313 | 231 |
Adjusted net income (loss) (2) | 925 | 635 | 1,560 | 241 | 408 | (316) | 1,893 | 623 |
Q2-2023 | ||||||||
Reported net income (loss) | 819 | 731 | 1,550 | 240 | 370 | (1,131) | 1,029 | (119) |
Acquisition and integration costs | 2 | - | 2 | - | 2 | 545 | 549 | 400 |
Amortization of acquisition-related intangible assets | 1 | 77 | 78 | 1 | 6 | - | 85 | 61 |
Legal provision (including related interest expense | - | - | - | - | - | 6 | 6 | 4 |
Initial provision for credit losses on purchased | - | - | - | - | - | 517 | 517 | 379 |
Adjusted net income (loss) (2) | 822 | 808 | 1,630 | 241 | 378 | (63) | 2,186 | 725 |
YTD-2024 | ||||||||
Reported net income (loss) | 1,793 | 1,103 | 2,896 | 560 | 852 | (1,150) | 3,158 | 743 |
Acquisition and integration costs | 3 | - | 3 | - | 12 | 68 | 83 | 56 |
Amortization of acquisition-related intangible assets | 6 | 144 | 150 | 3 | 10 | - | 163 | 113 |
Legal provision (including related interest expense | - | - | - | - | - | 23 | 23 | 17 |
Impact of loan portfolio sale | - | - | - | - | - | 136 | 136 | 102 |
Impact of FDIC special assessment | - | - | - | - | - | 363 | 363 | 268 |
Adjusted net income (loss) (2) | 1,802 | 1,247 | 3,049 | 563 | 874 | (560) | 3,926 | 1,299 |
YTD-2023 | ||||||||
Reported net income | 1,770 | 1,396 | 3,166 | 399 | 858 | (3,261) | 1,162 | (692) |
Acquisition and integration costs | 2 | - | 2 | - | 5 | 723 | 730 | 532 |
Amortization of acquisition-related intangible assets | 1 | 78 | 79 | 2 | 10 | - | 91 | 65 |
Management of fair value changes on the purchase | - | - | - | - | - | 1,461 | 1,461 | 1,093 |
Legal provision (including related interest expense | - | - | - | - | - | 12 | 12 | 9 |
Impact of Canadian tax measures | - | - | - | - | - | 371 | 371 | - |
Initial provision for credit losses on purchased | - | - | - | - | - | 517 | 517 | 379 |
Adjusted net income (loss) (2) | 1,773 | 1,474 | 3,247 | 401 | 873 | (177) | 4,344 | 1,386 |
(1) | |
(2) | Refer to footnotes (1) to (8) in the Non-GAAP and Other Financial Measures table for details on adjusting items. |
Certain comparative figures have been reclassified to conform with the current period's presentation. | |
Return on Equity and Return on Tangible Common Equity
(Canadian $ in millions, except as noted) | Q2-2024 | Q1-2024 | Q2-2023 | YTD-2024 | YTD-2023 |
Reported net income | 1,866 | 1,292 | 1,029 | 3,158 | 1,162 |
Net income attributable to non-controlling interest in subsidiaries | 4 | 2 | 3 | 6 | 3 |
Net income attributable to bank shareholders | 1,862 | 1,290 | 1,026 | 3,152 | 1,159 |
Dividends on preferred shares and distributions on other equity instruments | 143 | 40 | 127 | 183 | 165 |
Net income available to common shareholders (A) | 1,719 | 1,250 | 899 | 2,969 | 994 |
After-tax amortization of acquisition-related intangible assets | 79 | 84 | 85 | 163 | 91 |
Net income available to common shareholders after adjusting for amortization of | 1,798 | 1,334 | 984 | 3,132 | 1,085 |
After-tax impact of other adjusting items (1) | 88 | 517 | 1,072 | 605 | 3,091 |
Adjusted net income available to common shareholders (C) | 1,886 | 1,851 | 2,056 | 3,737 | 4,176 |
Average common shareholders' equity (D) | 70,551 | 69,391 | 66,685 | 69,965 | 65,820 |
Goodwill | (16,431) | (16,158) | (16,203) | (16,293) | (10,653) |
Acquisition-related intangible assets | (2,694) | (2,745) | (2,824) | (2,720) | (1,447) |
Net of related deferred tax liabilities | 978 | 1,007 | 1,054 | 992 | 653 |
Average tangible common equity (E) | 52,404 | 51,494 | 48,712 | 51,944 | 54,373 |
Return on equity (%) (= A/D) (2) | 9.9 | 7.2 | 5.5 | 8.5 | 3.0 |
Adjusted return on equity (%) (= C/D) (2) | 10.9 | 10.6 | 12.6 | 10.7 | 12.8 |
Return on tangible common equity (%) (= B/E) (2) | 14.0 | 10.3 | 8.3 | 12.1 | 4.0 |
Adjusted return on tangible common equity (%) (= C/E) (2) | 14.6 | 14.3 | 17.3 | 14.5 | 15.5 |
(1) | Refer to footnotes (1) to (8) in the Non-GAAP and Other Financial Measures table for details on adjusting items. |
(2) | Quarterly calculations are on an annualized basis. |
Return on Equity by Operating Segment (1)
Q2-2024 | ||||||||
BMO Wealth | BMO Capital | Corporate | ||||||
(Canadian $ in millions, except as noted) | Canadian P&C | Total P&C | Management | Markets | Services | Total Bank | (US$ in millions) | |
Reported | ||||||||
Net income available to common shareholders | 861 | 526 | 1,387 | 318 | 450 | (436) | 1,719 | 554 |
Total average common equity | 15,750 | 33,078 | 48,828 | 4,736 | 13,008 | 3,979 | 70,551 | 31,544 |
Return on equity (%) | 22.3 | 6.5 | 11.6 | 27.2 | 14.1 | na | 9.9 | 7.1 |
Adjusted (3) | ||||||||
Net income available to common shareholders | 866 | 595 | 1,461 | 320 | 457 | (352) | 1,886 | 671 |
Total average common equity | 15,750 | 33,078 | 48,828 | 4,736 | 13,008 | 3,979 | 70,551 | 31,544 |
Return on equity (%) | 22.4 | 7.3 | 12.2 | 27.4 | 14.3 | na | 10.9 | 8.6 |
Q1-2024 | ||||||||
BMO Wealth | BMO Capital | Corporate | ||||||
(Canadian $ in millions, except as noted) | Canadian P&C | Total P&C | Management | Markets | Services | Total Bank | (US$ in millions) | |
Reported | ||||||||
Net income available to common shareholders | 911 | 547 | 1,458 | 238 | 384 | (830) | 1,250 | 175 |
Total average common equity | 15,847 | 33,246 | 49,093 | 4,679 | 13,202 | 2,417 | 69,391 | 32,059 |
Return on equity (%) | 22.8 | 6.5 | 11.8 | 20.3 | 11.6 | na | 7.2 | 2.2 |
Adjusted (3) | ||||||||
Net income available to common shareholders | 915 | 622 | 1,537 | 239 | 399 | (324) | 1,851 | 614 |
Total average common equity | 15,847 | 33,246 | 49,093 | 4,679 | 13,202 | 2,417 | 69,391 | 32,059 |
Return on equity (%) | 23.0 | 7.4 | 12.4 | 20.4 | 12.0 | na | 10.6 | 7.6 |
Q2-2023 | ||||||||
BMO Wealth | BMO Capital | Corporate | ||||||
(Canadian $ in millions, except as noted) | Canadian P&C | Total P&C | Management | Markets | Services | Total Bank | (US$ in millions) | |
Reported | ||||||||
Net income available to common shareholders | 809 | 719 | 1,528 | 238 | 362 | (1,229) | 899 | (128) |
Total average common equity | 13,486 | 32,689 | 46,175 | 4,747 | 11,490 | 4,273 | 66,685 | 30,896 |
Return on equity (%) | 24.6 | 9.0 | 13.6 | 20.6 | 13.0 | na | 5.5 | (1.7) |
Adjusted (3) | ||||||||
Net income available to common shareholders | 812 | 796 | 1,608 | 239 | 370 | (161) | 2,056 | 716 |
Total average common equity | 13,486 | 32,689 | 46,175 | 4,747 | 11,490 | 4,273 | 66,685 | 30,896 |
Return on equity (%) | 24.7 | 10.0 | 14.3 | 20.7 | 13.2 | na | 12.6 | 9.5 |
YTD-2024 | ||||||||
BMO Wealth | BMO Capital | Corporate | ||||||
(Canadian $ in millions, except as noted) | Canadian P&C | Total P&C | Management | Markets | Services | Total Bank | (US $ in millions) | |
Reported | ||||||||
Net income available to common shareholders | 1,772 | 1,073 | 2,845 | 556 | 834 | (1,266) | 2,969 | 728 |
Total average common equity | 15,799 | 33,163 | 48,962 | 4,707 | 13,106 | 3,190 | 69,965 | 31,804 |
Return on equity (%) | 22.6 | 6.5 | 11.7 | 23.7 | 12.8 | na | 8.5 | 4.6 |
Adjusted (3) | ||||||||
Net income available to common shareholders | 1,781 | 1,217 | 2,998 | 559 | 856 | (676) | 3,737 | 1,284 |
Total average common equity | 15,799 | 33,163 | 48,962 | 4,707 | 13,106 | 3,190 | 69,965 | 31,804 |
Return on equity (%) | 22.7 | 7.4 | 12.3 | 23.9 | 13.1 | na | 10.7 | 8.1 |
YTD-2023 | ||||||||
BMO Wealth | BMO Capital | Corporate | ||||||
(Canadian $ in millions, except as noted) | Canadian P&C | Total P&C | Management | Markets | Services | Total Bank | (US $ in millions) | |
Reported | ||||||||
Net income available to common shareholders | 1,751 | 1,376 | 3,127 | 395 | 841 | (3,369) | 994 | (707) |
Total average common equity | 12,773 | 23,155 | 35,928 | 4,370 | 11,796 | 13,726 | 65,820 | 23,790 |
Return on equity (%) | 27.6 | 12.0 | 17.6 | 18.2 | 14.4 | na | 3.0 | (6.0) |
Adjusted (3) | ||||||||
Net income available to common shareholders | 1,754 | 1,454 | 3,208 | 397 | 856 | (285) | 4,176 | 1,371 |
Total average common equity | 12,773 | 23,155 | 35,928 | 4,370 | 11,796 | 13,726 | 65,820 | 23,790 |
Return on equity (%) | 27.7 | 12.7 | 18.0 | 18.3 | 14.6 | na | 12.8 | 11.6 |
(1) | Return on equity is based on allocated capital. For further information, refer to the How BMO Reports Operating Group Results section. |
(2) | |
(3) | Refer to footnotes (1) to (8) in the Non-GAAP and Other Financial Measures table for details on adjusting items. |
na - not applicable | |
Capital is allocated to the operating segments based on the amount of regulatory capital required to support business activities. Effective the first quarter of fiscal 2024, our capital allocation rate increased to
Interested parties are invited to visit BMO's website at www.bmo.com/investorrelations to review the 2023 Annual MD&A and audited annual consolidated financial statements, quarterly presentation materials and supplementary financial and regulatory information package.
Interested parties are also invited to listen to our quarterly conference call on Wednesday, May 29, 2024, at 8.00 a.m. (ET). The call may be accessed by telephone at 416-340-2217 (from within
A live webcast of the call can be accessed on our website at www.bmo.com/investorrelations. A replay can also be accessed on the website.
Shareholder Dividend Reinvestment and Share Purchase Plan (DRIP) Common shareholders may elect to have their cash dividends reinvested in
For dividend information, change in shareholder address or to advise of duplicate mailings, please contact Computershare Trust Company of 100 University Avenue, 8th Floor Telephone: 1-800-340-5021 ( Telephone: (514) 982-7800 (international) Fax: 1-888-453-0330 ( Fax: (416) 263-9394 (international) E-mail: service@computershare.com | For other shareholder information, please contact Bank of Montreal Shareholder Services Corporate Secretary's Department One First Canadian Place, 21st Floor Telephone: (416) 867-6785 E-mail: corp.secretary@bmo.com
For further information on this document, please contact Bank of Montreal Investor Relations Department P.O. Box 1, One First Canadian Place, 37th Floor
To review financial results and regulatory filings and |
BMO's 2023 Annual MD&A, audited consolidated financial statements, annual information form and annual report on Form 40-F (filed with the U.S. Securities and Exchange Commission) are available online at www.bmo.com/investorrelations and at www.sedarplus.ca. Printed copies of the bank's complete 2023 audited consolidated financial statements are available free of charge upon request at 416-867-6785 or corp.secretary@bmo.com.
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SOURCE BMO Financial Group
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