Canadian Personal & Commercial Banking - Financial Results
Canadian Personal & Commercial Banking
Record revenue and PPPT2 with good deposit and loan growth
•
Adjusted net income down 4% Y/Y (reported down 5%)
Adjusted¹ PPPT² up 10% Y/Y (reported up 9%)
Revenue up 10% Y/Y
NII up 10% Y/Y with strong balance growth and higher
margins
NIM up 7 bps Q/Q and up 5 bps Y/Y
NIR up 11% Y/Y due to the inclusion of AIR MILES and
higher card related revenue
Adjusted¹ expenses up 10% Y/Y (reported up 11%)
reflecting higher employee-related expenses, including
severance4, technology costs and the inclusion of AIR
MILES
Total provision for credit losses $269MM (Impaired
provision of $209MM and performing provision of $60MM)
Average loans up 7% Y/Y and 1% Q/Q
($MM)
Reported
Adjusted¹
Q3 23
Q2 23
Q3 22
Q3 23
Q2 23 Q3 22
Net Interest Income
2,129
1,983
1,938
2,129
1,983
1,938
Non-Interest Revenue
656
563
591
656
563
591
Revenue
2,785 2,546 2,529 2,785 2,546
2,529
Expenses
Income before Taxes
Net Income
1,256 1,126 1,134
1,529 1,420 1,395
269 228
1,260 1,192
1,245 1,122
1,134
1,540
1,424
1,395
89
269
228
89
1,306
1,271
1,196 1,306
915
861
965
923
864
965
Efficiency Ratio (%)
ROE (%)
45.1
44.2
44.8
44.7
44.1
44.8
25.6 25.1
32.0
25.8
25.2
32.0
PPPT²
Total PCL
Net Income¹ and NIM Trends
-
-
Personal & Business Banking up 6% Y/Y and 1% Q/Q
Cards up 19% Y/Y and 7% Q/Q
2.72
2.66
Commercial³ up 7% Y/Y and flat Q/Q
•
Average deposits up 12% Y/Y and 3% Q/Q
2.70
2.70
2.77
965 965
917 917
980 980
861 864
915 923
Q3'22
Q4'22
Q1'23
Q2'23
Q3'23
Reported Net Income ($MM)
1 Adjusted results and measures are non-GAAP, see slide 37 for more information and slide 39 for adjustments to reported results
Adjusted Net Income ($MM) --NIM (%)
2 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
3 Commercial loan growth excludes corporate cards and small business cards
4 Q3'23 severance costs $60MM pre-tax, $43MM after-tax
BMOM
Financial Results ⚫ August 29, 2023
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