Canadian Personal & Commercial Banking - Financial Results slide image

Canadian Personal & Commercial Banking - Financial Results

BMO Capital Markets Solid revenue performance reflecting diversified businesses . • • Adjusted¹ and reported net income up 18% Y/Y Adjusted¹ PPPT³ up 17% Y/Y (reported up 16%) Revenue² up 17% Y/Y: Global Markets revenue up 7% due to higher trading activity Investment and Corporate Banking revenue up 35% reflecting prior-year markdowns on loan underwriting commitments, as well as higher corporate banking-related revenue Adjusted¹ and reported expenses up 17% Y/Y due to higher performance-based compensation, legal provisions and technology costs Total provision for credit losses of $10MM ($1MM provision on impaired loans and $9MM provision on performing loans) Reported Adjusted¹ ($MM)² Q3 23 Q2 23 Q3 22 Q3 23 Q2 23 Q3 22 Global Markets 870 935 813 870 935 813 I&CB Revenue (teb) Expenses PPPT³ 608 651 451 608 651 451 1,478 1,586 1,264 1,478 1,586 1,264 1,076 1,060 920 1,067 1,050 913 402 526 344 411 536 351 Total PCL (recovery) 10 17 (7) 10 17 (7) Income before Taxes 392 509 351 401 519 358 Net Income 310 380 262 316 388 266 U.S. Net Income ($US) 71 9 24 74 12 28 Efficiency Ratio (%) ROE (%) 72.8 66.8 72.7 72.2 66.1 72.2 10.2 13.3 8.5 10.4 13.6 8.7 Net Income¹ Trends 503 510 357 363 380 388 310 316 262 266 Q3'22 Q4'22 Reported Net Income ($MM) Q1'23 Q2'23 ■Adjusted Net Income ($MM) Q3'23 1 Adjusted results and measures are non-GAAP, see slide 37 for more information and slide 39 for adjustments to reported results 2 Operating group revenue and income taxes are stated on a taxable equivalent basis (teb). This teb adjustment (Q3'23 $81MM, Q2'23 $84MM, Q3'22 $61MM) is offset in Corporate Services. Efficiency ratio is calculated based on revenue (teb). 3 Reported and Adjusted Pre-Provision Pre-Tax earnings (PPPT) are non-GAAP measures. See slide 37 for more information and slide 41 for calculation of PPPT 4 Q3'23 severance costs $37MM pre-tax, $27MM after-tax; Q3'22 severance costs $49MM pre-tax, $37MM after-tax BMOM Financial Results ⚫ August 29, 2023 19
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