Q2 F2023 - Bank of the West Contribution & Financial Results slide image

Q2 F2023 - Bank of the West Contribution & Financial Results

Q2 F2023 - Bank of the West Contribution • Bank of the West (BOTW) contributed $1,072MM revenue, $755MM to adjusted¹ expenses (reported $1,581MM) and $230MM to adjusted¹ net income (reported net loss of $909MM) Revenue includes $103MM accretion of the fair value mark on loans, deposits and securities, net of the negative carry on the rate mark hedge, all recorded in Corporate Services Remain on track to complete system conversion and BMO Net Revenue³ Expenses PPPT² Total PCL Income (Loss) before Taxes Reported Adjusted¹ ($MM) BMO ex. BOTW BMO ex. BOTW BMO BOTW BMO BOTW Gross Revenue 7,368 1,072 8,440 7,375 1,072 8,447 Less: CCPB³ 591 591 591 591 6,777 1,072 7,849 6,784 1,072 7,856 3,992 1,581 5,573 3,976 755 4,731 2,785 (509) 2,276 2,808 317 3,125 293 730 1,023 293 25 318 2,492 (1,239) 1,253 2,515 292 2,807 Net Income (Loss) 1,968 (909) 1,059 1,986 230 2,216 Net Income (Loss) U.S. Segment US$ 563 (667) (104) 571 169 740 brand unification on Labour Day weekend Average Gross Loans and Acceptances 567,361 78,715 646,076 567,361 78,715 646,076 Executing our plan to achieve run rate expense synergies of US$670MM pre-tax by the start of Q2'24 Efficiency Ratio³ (%) NIM ex. Trading Average Deposits 792,947 90,279 883,226 792,947 90,279 883,226 58.9 1.68 147.5 71.0 58.6 70.4 60.2 3.48 1.88 1.69 3.48 1.88 This slide contains forward-looking statements, please refer to the caution on slide 2 1 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 41 for adjustments to reported results 2 Reported and adjusted Pre-Provision Pre-Tax earnings (PPPT) are non-GAAP measures. See slide 40 for more information and slide 44 for calculation of PPPT 3 Reported and adjusted net revenue and measures calculated based on net revenue are non-GAAP measures. Net revenue is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB). Efficiency ratio is calculated based on net revenue and is also a non-GAAP measure. See slide 40 for more information and slide 43 for calculation of net revenue 4 See the Significant Events section of BMO's Second Quarter 2023 MD&A and slide 23 for more information, and slide 39 for results in USD BMOM Financial Results May 24, 2023 • 11
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