Financial Results
•
U.S. Personal & Commercial Banking
PPPT² up Q/Q as lower expenses offset environmental pressure on revenues
Amounts that follow are in U.S. dollars:
Reported
Adjusted¹
•
Adjusted net income down 4% Y/Y (reported 16%)
Adjusted¹ PPPT² up 19% Y/Y (reported 8%), primarily
due to the inclusion of Bank of the West (BOTW);
up 7% Q/Q (reported 8%)
(US$MM)
Q1 24
Y/Y
Q/Q
Q1 24
Y/Y
Q/Q
Net interest income (teb)³
1,537
44%
1%
1,537
44%
1%
Non-interest revenue
296
32%
(2)%
296
32%
(2)%
Revenue (teb) 3
1,833
42%
1%
1,833
42%
1%
-
Revenue³ up 42% Y/Y; up 1% Q/Q
NII³ up 44% Y/Y; up 1% Q/Q, primarily due to higher
deposit balances, partially offset by a Bank of the
West conversion adjustment in the prior quarter
NIM³ down 11 bps Y/Y; flat Q/Q, driven by lower
deposit margins as customers migrate to higher cost
deposits offset by favourable change in balance
sheet mix as deposits have grown faster than loans
NIR up 32% Y/Y; down 2% Q/Q
Adjusted¹ expenses up 68% Y/Y (reported up 80%);
down 4% Q/Q on an adjusted and reported basis,
primarily due to efficiency initiatives
Expenses
1,094
80%
(4)%
1,019
68%
(4)%
PPPT²
739
8%
8%
814
19%
7%
Total PCL (recovery)
217
$176
$88
217
$176
$88
Net Income
419
(16)%
(3)%
475
(4)%
(4)%
Net Income (CDE$)
560
(16)%
(5)%
635
(5)%
(5)%
Efficiency Ratio (%)
59.7
1,270 bps (270) bps
55.6
870 bps (260) bps
ROE (%)
6.5
(1,220) bps (60) bps
7.4
(1,130) bps (70) bps
Net Income¹ and NIM³ Trends
3.97
3.99
•
Total provision for credit losses $217MM (impaired
provision of $137MM and performing provision
of $80MM)
3.86
3.78
3.86
Average loans & acceptances up 48% Y/Y; down less
than 1% Q/Q (up 2% excluding sale of RV loan
portfolio)
Average deposits up 45% Y/Y and 2% Q/Q
Prior period amounts have been reclassified to conform with the current period presentation
596
539
495 496
490
475
434
433
419
376
Q1'23
Q2'23
Q3'23
Q4'23
Q1'24
Reported Net Income ($MM)
Adjusted Net Income ($MM)
-NIM (%)
1 Adjusted results and measures are non-GAAP. See slide 37 and 42 for more information and slide 38 for adjustments to reported results
2 Reported and adjusted pre-provision pre-tax earnings (PPPT) are non-GAAP measures. See slide 37 for more information and slide 40 for calculation of PPPT
3 Operating group revenue, NII, income taxes and net interest margin are stated on a taxable equivalent basis (teb). The teb adjustment (Q1'24 $7MM, Q4'23 $7MM, Q1'23 $6MM) is offset in Corporate Services.
Efficiency ratio is calculated based on revenue (teb)
BMOM
.
Financial Results ⚫ February 27, 2024
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