Financial Results slide image

Financial Results

Canadian Personal & Commercial Banking Record PPPT² performance and strong volume growth Adjusted¹ and reported net income up 5% Y/Y • Adjusted¹ and reported PPPT² up 13% Y/Y Reported Adjusted¹ ($MM) Q4 23 Q3 23 Q4 22 Q4 23 Q3 23 Q4 22 Net interest income Non-interest revenue 2,166 2,129 1,961 701 656 586 2,867 2,785 2,547 1,271 1,256 1,131 1,596 1,529 1,416 269 269 174 2,166 2,129 701 656 2,867 2,785 2,547 1,265 1,245 1,131 1,602 1,540 1,416 1,961 586 269 269 174 Income before Taxes Net Income 1,327 1,260 1,242 1,333 1,271 1,242 962 915 917 966 923 917 Efficiency Ratio (%) ROE (%) 44.3 45.1 44.4 44.1 44.7 44.4 26.6 25.6 29.4 26.7 25.8 29.4 . • • Revenue up 13% Y/Y NII up 10% Y/Y with strong balance growth and higher margins NIM flat Q/Q and up 11 bps Y/Y NIR up 20% Y/Y due to the inclusion of AIR MILES and higher card-related revenue Adjusted¹ and reported expenses up 12% Y/Y reflecting the inclusion of AIR MILES and higher employee-related costs Adjusted¹ operating leverage 0.8% (reported 0.2%) Total provision for credit losses $269MM (impaired provision of $248MM and performing provision of $21MM) Revenue Expenses PPPT² Total PCL • Average loans up 6% Y/Y and 2% Q/Q 2.70 - Personal & Business Banking up 5% Y/Y and 2% Q/Q 2.66 - Cards up 20% Y/Y and 5% Q/Q Commercial³ up 5% Y/Y and 1% Q/Q Average deposits up 12% Y/Y and 3% Q/Q Net Income¹ and NIM Trends 2.70 2.77 2.77 980 917 917 980 923 966 861 864 915 962 Q4'22 Q1'23 Reported Net Income ($MM) 1 Adjusted results and measures are non-GAAP. See slide 39 for more information and slide 40 for adjustments to reported results 2 Reported and adjusted pre-provision pre-tax earnings (PPPT) are non-GAAP measures. See slide 39 for more information and slide 43 for calculation of PPPT 3 Commercial loan growth excludes corporate cards and small business cards BMOM Q2'23 Q3'23 Q4'23 ■ Adjusted Net Income ($MM) --NIM (%) Financial Results ⚫ December 1, 2023 17
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