Q2 F2023 - Bank of the West Contribution & Financial Results
BMO Capital Markets
Results mainly impacted by slower underwriting environment
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Adjusted¹ net income and PPPT³ down 14% and 16% Y/Y,
respectively (reported down 15% and 17%)
Revenue² relatively unchanged Y/Y:
Global Markets revenue relatively unchanged as higher
foreign exchange and equities trading revenue were
offset by lower interest rate trading revenue and lower
issuance activity
Investment and Corporate Banking revenue was up 2%
due to higher corporate banking and advisory revenue,
partly offset by lower underwriting activity
Adjusted¹ and reported expenses up 14% Y/Y due to
impact of the stronger U.S. dollar, higher technology costs
and a legal provision
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Total provision for credit losses of $17MM (nil provisions
on impaired loans and performing loans $17MM)
Reported
Adjusted¹
($MM)²
Q2 23
Q1 23
Q2 22
Q2 23
Q1 23
Q2 22
Global Markets
935
1,100
928
935
1,100
928
I&CB
651
618
636
651
618
636
Revenue (teb)
1,586
1,718
1,564
1,586 1,718
1,564
Expenses
PPPT³
1,060
1,091
929
1,050 1,082 923
526
627
635
536
636
641
Total PCL (recovery)
17
(10)
33
17
(10)
33
Income before Taxes
509
637
602
519
646
608
Net Income
380
503
448
388
510
453
U.S. Net Income ($US)
9
104
119
12
107
124
Efficiency Ratio (%)
66.8
63.5
59.4
66.1
63.0
59.0
ROE (%)
13.3
16.2
15.9
13.6
16.4
16.1
Net Income¹ Trends
448 453
503 510
380
388
357 363
262
266
Q2'22
Q3'22
■Reported Net Income ($MM)
Q4'22
Q2'23
Q1'23
■Adjusted Net Income ($MM)
1 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 42 for adjustments to reported results
2 Operating group revenue and income taxes are stated on a taxable equivalent basis (teb). This teb adjustment (Q2'23 $84MM, Q1'23 $70MM, Q2'22 $60MM) 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 40 for more information and slide 44 for calculation of PPPT
BMOM
Financial Results May 24, 2023
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