Investor Presentation
Q1 F2024 - Financial Highlights
Efficiency savings and the benefit of acquisitions offset by slower environment
Adjusted² EPS $2.56, down $0.50 Y/Y (reported $1.73,
up $1.59)
Adjusted² net income down 12% Y/Y (reported up +100%);
down 16% Q/Q (reported down 24%)
Q1'24 adjusted² net income excluded $313MM FDIC
special assessment, $136MM net accounting loss on the
sale of a portfolio of recreational vehicle (RV) loans,
$57MM integration costs and $84MM amortization of
acquisition-related intangible assets
Adjusted² PPPT¹ up 3% Y/Y (reported up +100%);
down 9% Q/Q (reported down 14%)
Adjusted² revenue up 10% Y/Y (reported up 50%)
primarily driven by acquisitions and higher Insurance
revenue
Adjusted² revenue down 6% Q/Q (reported down 8%)
Major drivers were weaker U.S. dollar, Corporate Services,
Insurance revenue and BMO Capital Markets
Adjusted² expenses up 16% Y/Y (reported up 23%);
down 4% Q/Q (reported down 5%)
($MM)
Revenue
Expenses
PPPT1
Total PCL
Reported
Adjusted²
Q1 24
Y/Y
Q/Q
Q1 24
Y/Y
Q/Q
7,672
50%
(8)%
7,850
10%
(6)%
5,389
23%
(5)%
4,783
16%
(4)%
2,283
+100% (14)%
3,067
3%
(9)%
627
$410
$181
627
$410
$181
Net Income
1,292
+100%
(24)%
1,893
(12)%
(16)%
U.S. Segment Net Income (US$)
184
+100%
(49)%
623
(6)%
(17)%
Diluted EPS ($)
1.73
$1.59
$(0.47)
2.56
$(0.50)
$(0.38)
Efficiency Ratio (%)
70.2
(1,570) bps
190 bps
60.9
280 bps
120 bps
ROE (%)
7.2
660 bps
(210) bps
10.6
(230) bps
(180) bps
ROTCE4 (%)
10.3
960 bps
(320) bps
14.3
30 bps
(280) bps
CET1 Ratio (%)
12.8
(540) bps
30 bps
12.8
(540) bps
30 bps
Net Income² Trends
Adjusted² operating leverage negative 5.4%
(reported 27.5%)
Total provision for credit losses $627MM
2,158
2,186
2,148
2,243
PCL on impaired loans $473MM or 29 bps³; provision on
performing loans $154MM
1,565
1,710
1,893
133
1,029
1,292
Q1'23
Q2'23
Q3'23
U.S. segment contributed 44% to adjusted² earnings in the
quarter (19% on a reported basis)
Q4'23
Q1'24
Reported Net Income ($MM)
Adjusted Net Income ($MM)
Prior period amounts have been reclassified to conform with the current period presentation, including the retrospective application of IFRS 17
1 Reported and adjusted pre-provision pre-tax earnings (PPPT) are non-GAAP measures. See slide 56 for more information and slide 59 for calculation of PPPT
2 Adjusted results and measures are non-GAAP. See slide 56 and 60 for more information and slide 57 for adjustments to reported results
3 Impaired PCL ratio is calculated as annualized impaired provision for credit losses over average net loans and acceptances, expressed in basis points
4 Reported and adjusted return on tangible common equity (ROTCE) are non-GAAP measures. See slide 56 and Non-GAAP and Other Financial Measures section of the First Quarter 2024 MD&A for more information
5 The Common Equity Tier 1 (CET1) Ratio is disclosed in accordance with Office Superintendent of Financial Institutions (OSFI) Capital Adequacy Requirements (CAR) Guideline
BMOM
Investor Presentation ⚫ February 2024
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