Investor Presentaiton
Q3 F2021 - Financial Highlights
Strong results with PPPT³ up 12% Y/Y and positive operating leverage
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Adjusted¹ EPS $3.44, up 86% Y/Y (reported $3.41, up 89%)
Adjusted¹ net income $2,292MM (reported $2,275MM)
Adjusted¹ ROE 17.6%, improved 90 bps Q/Q (reported
17.5%, improved 730 bps)
Adjusted¹ PPPT³ up 12% Y/Y (reported up 13%)
Net revenue² up 10% Y/Y, reflecting growth across all
operating groups
NIM excluding Trading up 14 bps Y/Y and 2 bps Q/Q
($MM)
Expenses
PPPT³
Total PCL
Net Income4
ROE (%)
Reported
Adjusted¹
Q3 21
Q2 21
Q3 20
Q3 21
Q2 21
Q3 20
Net interest income
Non-interest revenue, net²
Net Revenue²
3,521
3,057 2,904 2,465
6,578 6,359 6,000
3,684 4,409 3,444
2,894 1,950 2,556
(70)
60 1,054
2,275 1,303 1,232
3,455
3,535
3,521 3,455
3,057 2,875
6,578 6,330 6,000
3,662 3,583 3,407
2,916 2,747 2,593
(70) 60 1,054
3,535
2,465
2,292 2,095
1,259
Diluted EPS ($)
3.41
1.91
1.81
3.44
3.13
1.85
17.5
10.2
9.4
17.6
16.7
9.6
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Adjusted¹ expenses up 8% Y/Y (reported up 7%)
ROTCE (%)
19.8
11.8
11.1
19.8
19.1
11.1
CET1 Ratio (%)
13.4
13.0
11.6
Adjusted efficiency ratio² 55.7%, improved 110 bps Y/Y
(reported 56.0%, improved 140 bps)
NIM excluding Trading
1.67
1.65
1.53
1.67
1.65
1.53
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Adjusted¹ operating leverage² 2.1% (reported 2.6%)
Net Income¹ Trends
2,292
2,038
2,095
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Total recovery of credit losses was $70MM, compared with a
provision of $1,054MM in the prior year and $60MM in the
prior quarter
PCL on impaired loans $71MM or 6 bps; recovery on
performing loans $(141)MM
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Total recovery of credit losses ratio 6 bps
1,232
1,259
Q3'20
1,610
2,017
2,275
1,584
1,303
Q4'20
Q1'21
Q2'21
Q3'21
1 Adjusted measures are non-GAAP measures, see slide 2 for more information
Reported Net Income ($MM) Adjusted Net Income ($MM)
2 Net revenue and non-interest revenue, net is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB). Operating leverage and efficiency ratio are based on net revenue. Reported gross revenue: Q3'21
$7,562MM; Q2'21 $6,076MM; Q3'20 $7,189MM
3 Pre-Provision Pre-Tax earnings (PPPT) is the difference between net revenue and expenses
4 Q3'21 reported net income included expenses of $18MM ($24MM pre-tax) from the impact of divestitures related to the announced sale of our EMEA Asset Management business and the sale of our Private Banking business in Hong Kong
and Singapore, offset by a partial reversal of restructuring charges recorded in Q4'19 related to severance of $18MM ($24MM pre-tax); all recorded in non-interest expense, in Corporate Services
5 Return on Tangible Common Equity (ROTCE) is calculated as net income available to common shareholders adjusted for the amortization of acquisition-related intangible assets as a percentage of average tangible common equity
BMO Financial Group
Investor Presentation • October 2021
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