Financial Results
BMO Capital Markets
Client activity gaining momentum after muted start to quarter
Adjusted¹ net income down 17% Y/Y (reported
•
down 19%)
•
•
Adjusted¹ PPPT³ down 20% Y/Y (reported
down 22%)
Revenue² down 6% Y/Y:
Global Markets down 13% primarily due to
lower trading revenue, including the impact of
the proposed elimination of the tax
deductibility of certain Canadian dividends
Investment and Corporate Banking up 5% due
to higher underwriting and advisory revenue,
partially offset by lower securities gains
Adjusted¹ expenses up 1% Y/Y (reported up 2%)
driven by higher technology costs, partially
offset by lower performance-based
compensation
Total recovery for credit losses of $(22)MM
(impaired provision of $11MM and recovery on
performing loans of $(33)MM)
Reported
Adjusted¹
($MM)
Q1 24
Y/Y
Q/Q
Q1 24
Y/Y
Q/Q
Global Markets
952
(13)%
1%
952 (13)% 1%
I&CB
637
5%
(10)%
637
5%
(10)%
Revenue (teb)²
Expenses
PPPT³
1,589 (6)%
1,116
473
(4)%
1,589
(6)%
(4)%
2%
6%
1,095
1%
5%
Total PCL (recovery)
(22)
$(12)
(22)% (21)%
$(23)
494 (20)%
(18)%
(22)
$(12)
$(23)
Net Income
U.S. Net Income ($US)
Efficiency Ratio (%)
131
393 (19)% (17)%
35%
408
(17)%
(14)%
10%
138
38%
16 %
70.2
600 bps 650 bps
69.0
530 bps
550 bps
ROE (%)
11.6
(410) bps (360) bps
12.0
(390) bps (330) bps
Net Income¹ Trends
488
495
370 378
295
301
472
475
393
408
Q1'23
Q2'23
Reported Net Income ($MM)
Q3'23
Q4'23
■Adjusted Net Income ($MM)
Q1'24
Prior period amounts have been reclassified to conform with the current period presentation
1 Adjusted results and measures are non-GAAP. See slide 37 and 42 for more information and slide 38 for adjustments to reported results
2 Operating group revenue and income taxes are stated on a taxable equivalent basis (teb). This teb adjustment (Q1'24 $19MM, Q4'23 $86MM, Q1'23 $70MM) is offset in Corporate Services. Efficiency ratio is calculated
based on revenue (teb). Beginning January 1, 2024, we did not take the deduction for certain Canadian dividends due to the proposed legislation, and as a result, we no longer report this revenue on a taxable
equivalent basis. For further information, refer to the Other Regulatory Developments section in BMO's First Quarter 2024 Report to Shareholders
3 Reported and adjusted pre-provision pre-tax earnings (PPPT) are non-GAAP measures. See slide 37 for more information and slide 40 for calculation of PPPT
BMOM
.
Financial Results ⚫ February 27, 2024
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