Financial Results
Q1 F2024 Non-Interest Expense
Executing expense efficiency initiatives
.
•
Adjusted¹ expenses up 16% Y/Y (reported
up 23%)
Driven by acquisitions partially offset by
operational efficiencies as well as $84MM
for the impact of the consolidation of
certain U.S. retirement benefit plans
Achieved US$800MM run rate Bank of the
West cost synergies
Adjusted¹ expenses down 4% Q/Q (reported
down 5%)
Stock-based compensation for employees
eligible to retire and seasonality of benefits
contributed a combined 6% to Q/Q expense
growth
Offset by:
Realization of Bank of the West cost
synergies and enterprise operational
efficiency initiatives reduced expenses 3%
Q/Q
Prior quarter charge related to the
consolidation of BMO real estate
•
Adjusted¹ efficiency ratio 60.9%
(reported 70.2%)
Employee Compensation
Premises
Reported
Adjusted¹
($MM)
Q1 24
Y/Y
Q/Q
Q1 24
Y/Y
Q/Q
Salaries
1,471
21%
(13)%
1,437
23%
(3)%
Performance-based compensation
1,029
5%
10%
1,017
4%
10%
Employee benefits
370
5%
34%
370
5%
34%
2,870
12%
(1)%
2,824
13%
6%
277
21%
(28)%
277
21%
(28)%
699
(3)%
(34)%
673
11%
(14)%
279
72%
(2)%
167
8%
2%
Advertising & business development
191
37%
(26)%
181
34%
(20)%
Communications
101
38%
(6)%
101
39%
0%
Professional fees
207
(10)%
(35)%
204
11%
(23)%
Other
765
181%
107%
356
37%
(5)%
Total Non-Interest Expense
5,389 23% (5)%
4,783
16%
(4)%
Computer and equipment
Amort. software and intangibles
Delivering on our expense commitments
Run-rate
Starting Q2'24
Target
Bank of the West
US$800MM
Cost Synergies
US$800MM
(by February 2024)
Enterprise
Operational
Efficiencies
$325MM
$400MM
(by end of F2024)
On
Track
Prior period amounts have been reclassified to conform with the current period presentation, including the retrospective application of IFRS 17
1 Adjusted results and measures are non-GAAP. See slide 37 for more information and slide 41 for adjustments to reported results
BMOM
Financial Results ⚫ February 27, 2024
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