Canadian Personal & Commercial Banking - Financial Results
Q3 F2023 - Financial Highlights
Good PPPT1 growth driven by Canadian P&C and Bank of the West
•
•
.
Adjusted² EPS $2.78, down 10% Y/Y (reported $1.97, up 1%)
Adjusted² net income down 4% Y/Y (reported up 7%)
-
Bank of the West (BOTW) added $167MM to adjusted² net
income (reported net loss of $272MM)
Adjusted² net income excluded $370MM integration costs,
$85MM amortization of acquisition-related intangible assets
and a charge of $131MM related to tax measures enacted by
the Canadian government that amended the GST/HST
definition for financial services
Adjusted net income included severance costs of $162MM
and $83MM impact of legal provisions
Adjusted² PPPT¹ up 6% Y/Y (reported up 25%)
Adjusted² net revenue³ up 22% Y/Y (reported up 39%) reflecting
growth across all operating groups
($MM)
Gross Revenue
Less: CCPB³
Net Revenue³
Expenses
PPPT¹
Total PCL
Reported
Adjusted²
Q3 23
Q2 23
Q3 22
Q3 23
Q2 23
Q3 22
Income before Taxes
Net Income
7,929 8,440 6,099
4
591
413
7,925 7,849 5,686
5,638 5,573 3,859
2,287 2,276 1,827
492 1,023 136
1,795 1,253 1,691
1,454 1,059 1,365
8,070
8,447
7,044
4
591
413
8,066 7,856 6,631
5,011 4,731 3,761
3,055 3,125 2,870
492
318
136
2,563 2,807 2,734
2,037
2,216 2,132
U.S. Segment Net Income (US$)
Diluted EPS ($)
364
(104) (28)
697
740
571
1.97
1.30
1.95
2.78
2.93
3.09
Efficiency Ratio³ (%)
71.1
71.0
67.9
62.1
60.2
56.7
ROE (%)
8.3
5.6
8.8
11.7
12.6
13.8
ROTCE5 (%)
11.9
8.4
9.6
15.8
17.2
15.1
•
Adjusted² expenses up 33% Y/Y (reported up 46%)
CET1 Ratio (%)
12.3
12.2
15.8
12.3
12.2
15.8
•
Adjusted² operating leverage³ negative 11.6% (reported
negative 6.8%)
Net Income Trends
Total provision for credit losses $492MM
PCL on impaired loans $333MM or 21 bps; provision on
performing loans $159MM
4,483
2,132
2,136
2,272
2,216
2,037
•
U.S. segment contributed 46% to adjusted² earnings in the
quarter (34% on a reported basis)
1,365
1,454
1,059
247
Q3'22
Q4'22
Q1'23
Q2'23
Q3'23
Reported Net Income ($MM)
■Adjusted Net Income ($MM)
1 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
2 Adjusted results and measures are non-GAAP, see slide 37 for more information and slide 38 for adjustments to reported results
3 Reported and Adjusted Net Revenue and measures calculated based on Net Revenue are non-GAAP measures. Net Revenue is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB).
Operating Leverage and Efficiency Ratio are both calculated based on Net Revenue and are also non-GAAP measures. See slide 37 for more information and slide 40 for calculation of Net Revenue
4 Impaired PCL ratio is calculated as impaired provision for credit losses over average net loans and acceptances, expressed in basis points
5 Reported and Adjusted Return on Tangible Common Equity (ROTCE) are non-GAAP measures. See slide 37 and Non-GAAP and Other Financial Measures section of the Third Quarter 2023 MD&A for more information
6 The Common Equity Tier 1 (CET1) Ratio is disclosed in accordance with OSFI's Capital Adequacy Requirements (CAR) Guideline
BMOM
Financial Results ⚫ August 29, 2023
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