Financial Results
F2023 Non-Interest Expense
Dynamic expense management leading to improving trends
Adjusted¹ expenses up 24% Y/Y
(reported up 31%)
Acquisitions³ contributed 15% to the
increase in adjusted¹ expenses
(reported 27%)
Y/Y Change in Non-Interest Expense ($MM)
31% Reported
24% Adjusted¹
0% Reported
4% Adjusted¹
21,219 Reported
15.0%
1.4%
21,195
18,029
2.0%
0.9%
0.8%
0.6%
18,798 Adjusted¹
•
Investments in sales force, technology
and business development to drive
Reported 16,194
Adjusted¹ 15,194
1.6%
0.6%
revenue
Adjusted efficiency ratio² 59.8%
(reported 72.5%)
Adjusted¹ expenses up 1% Q/Q
(reported up 2%) mainly due to higher
premises costs, including a $51MM
charge related to the consolidation of
BMO real estate, higher professional
fees, an additional month of AIR MILES
and the impact of the stronger U.S.
dollar, largely offset by severance in the
prior quarter
•
Improving underlying quarterly trends
including salaries and computer &
equipment costs
F2022
FX Impact
Perf.
Based
Compensation
Acquisitions Severance &
CRE Charge
Salary &
Benefits
Technology
Advert. &
Business
Development
All Other
F2023
Non-Interest Expense Growth Trend (Y/Y %)
28%
32%
26%
Adjusted¹
9%
9%
7%
5%
4%
Underlying³
Q1'23
Q2'23
Q3'23
Q4'23
Reported Non-Interest
Expense Growth
14%
49%
45%
19%
1 Adjusted results and measures are non-GAAP. See slide 39 for more information and slide 40 for adjustments to reported results
2 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).
Efficiency ratio is calculated based on net revenue and is also a non-GAAP measure. See slide 39 for more information and slide 42 for calculation of net revenue
3 Underlying expenses exclude the impact of the stronger U.S. dollar, performance-based compensation in 2022 and 2023, severance in Q3'22 and Q3'23, the charge related to the consolidation of BMO Real Estate in
Q4'23, and acquisitions (Bank of the West, AIR MILES and Radicle) in 2023. See the Recent Acquisitions section of BMO's 2023 Annual MD&A for more information
BMOM
Financial Results December 1, 2023
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