Q2 F2023 - Bank of the West Contribution & Financial Results
Q2'23 Non-Interest Expense
Y/Y growth includes impact of BOTW and prior year investments to drive higher revenue growth
•
Adjusted¹ expenses up 30% Y/Y
(reported up 50%)
BOTW contributed 21% to the
increase in adjusted¹ expenses
(reported 43%)
Higher expense includes impact from
prior year investments in sales force
and technology
Y/Y Change in Non-Interest Expense ($MM)
5,573 Reported
21%
5,332
4,441
3%
4,731 Adjusted¹
2%
1%
1%
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Reported 3,713
Adjusted¹ 3,650
3%
(2)%
Current quarter includes one-time
expense items contributing ~2%
to Y/Y expense growth
•
Adjusted¹ expenses up 13% Q/Q
(reported up 26%)
BOTW contributed 18% to the
increase in adjusted¹ expenses
(reported 36%)
BMO underlying down 5%, driven by
lower employee-related costs, due to
seasonal expenses in the prior quarter
and fewer days in the current quarter
•
Adjusted¹ efficiency ratio² 60.2%
(reported 71.0%) or 58.6% excluding
BOTW (reported 58.9%)
Q2'22
FX Impact Performance
Based
Compensation
BOTW
Salary &
Benefits
incl. sales
Technology Advertising & All Other
Q2'23
Business
Development
force
expansion
56.7
55.6
Adjusted¹
Efficiency Ratio 1,2 (%) Trend
57.2
67.9
Reported
36.7
43.7
60.2
57.2
58.6 BMO ex BOTW
83.8
71.0
58.9 BMO ex BOTW
Q2'22
Q3'22
Q4'22
Q1'23
Q2'23
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 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
BMOM
Financial Results May 24, 2023
•
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