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
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