Canadian Personal & Commercial Banking - Financial Results
U.S. Personal & Commercial Banking
Solid performance including contribution from Bank of the West in evolving market conditions
Figures that follow are in U.S. dollars:
Reported
Adjusted¹
•
Adjusted net income up $43MM or 10% Y/Y (reported
down $14MM or 3%)
(US$MM)²
Q3 23
Q2 23
Q3 22
Q3 23
Q2 23
Q3 22
•
•
•
Adjusted¹ PPPT³ up $136MM or 22% Y/Y (reported up
$59MM or 10%), primarily due to the impact of BOTW
Revenue² up $630MM or 51% Y/Y due to inclusion of
BOTW; down $50MM Q/Q
NII² up 55% Y/Y, down 3% Q/Q due to lower margins and
balances consistent with industry trends
NIM² down 16 bps Q/Q; up 10 bps Y/Y
Adjusted¹ expenses up 82% Y/Y (reported up 94%) due to
impact of BOTW; up 4% Q/Q (reported up 3%) due to
severance and higher advertising costs
Revenue (teb)
Expenses
PPPT³
Net Interest Income (teb)
Non-Interest Revenue
1,550
314
1,589
1,001
1,550
1,589
1,001
325
1,864 1,914 1,234
233
314
325
233
1,864 1,914 1,234
1,175 1,134 604
1,097 1,056 603
689
780
630
767
858
631
Total PCL (recovery)
153
51
53
153
51
53
Income before Taxes
536
729
577
614
807
578
Net Income
431
581
445
489
638
446
Net Income (CDE$)
576
789
568
653
866
569
Efficiency Ratio (%)
63.0
59.3
49.0
58.8
55.2
48.9
Total provision for credit losses $153MM (impaired
ROE (%)
6.9
9.6
16.5
7.9
10.6
16.6
provision $89MM and performing provision of $64MM)
•
Average loans up 53% Y/Y due to Bank of the West and
down 1% Q/Q
Net Income¹ and NIM² Trends
3.88
3.92
3.70
3.96
3.80
Average deposits up 41% Y/Y due to Bank of the West and
down 3% Q/Q
638
581
488
489
520 521
489
445 446
431
Q3'22
Q4'22
Q1'23
Q2'23
Q3'23
■Reported Net Income ($MM)
■Adjusted Net Income ($MM)
-NIM (%)
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, NII, income taxes and Net Interest Margin are stated on a taxable equivalent basis (teb). This teb adjustment (Q3'23 $6MM, Q2'23 $6MM, Q3'22 $5MM) 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 US$20MM pre-tax, US$15MM after-tax (CDE$$26MM pre-tax, CDE $19MM after-tax)
BMOM
Financial Results ⚫ August 29, 2023
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