Canadian Personal & Commercial Banking - Financial Results slide image

Canadian Personal & Commercial Banking - Financial Results

Q3'23 Non-Interest Expense Improving underlying trends from dynamic expense management • Adjusted¹ expenses up 33% Y/Y Y/Y Change in Non-Interest Expense ($MM) 46% Reported 33% Adjusted¹ (reported up 46%) Acquisitions³ contributed 21% to the increase in adjusted¹ expenses (reported 36%) Higher severance contributed 5% to adjusted¹ expense growth (reported 4%) Investments in sales force, technology and business development to drive revenue Adjusted¹ expenses up 6% Q/Q (reported up 1%) Growth primarily due to impact of severance costs and more days in the current quarter Reported 3,859 Adjusted¹ 3,761 2% 1% 2% Reported 4% Adjusted¹ 5,638 Reported 5% 21% 5,523 4,821 2% 1% 1% 5,011 Adjusted¹ Q3'22 FX Impact Perf. Based Compensation Acquisitions Severance Salary & Benefits Technology All Other Q3'23 Efficiency Ratio 1,2 (%) Trend 62.1 60.2 60.8 BMO ex BOTW 57.2 57.2 • Adjusted¹ efficiency ratio² 62.1% (reported 71.1%) or 60.8% excluding BOTW (reported 62.6%) Adjusted¹ 56.7 58.6 83.8 71.0 71.1 67.9 Reported Q3'22 43.7 Q4'22 Q1'23 62.6 BMO ex BOTW 58.9 Q2'23 Q3'23 1 Adjusted results and measures are non-GAAP, see slide 37 for more information and slide 38 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 37 for more information and slide 40 for calculation of Net Revenue 3 Acquisitions include Bank of the West, AIR MILES and Radicle BMOM Financial Results ⚫ August 29, 2023 14
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