Financial Results slide image

Financial Results

U.S. Personal & Commercial Banking Results reflect muted U.S. banking environment, offset by contribution from Bank of the West Amounts that follow are in U.S. dollars: • Adjusted¹ net income up $54MM or 11% Y/Y (reported down $2MM or 1%) Adjusted¹ PPPT² up $120MM or 18% Y/Y (reported up $45MM or 6%), mainly due to the inclusion of BOTW, up 4% Q/Q Revenue³ up $574MM or 44% Y/Y, up $7MM Q/Q NII³ up 45% Y/Y, up 1% Q/Q NIM³ down 1 bp Y/Y, up 7 bps Q/Q, primarily due to higher net interest income in the current quarter that was offset in Corporate Services, and changes in balance sheet mix NIR up 40% Y/Y mainly due to the inclusion of BOTW, down 4% Q/Q, due to lower operating lease revenue and deposit fees Adjusted¹ expenses up 74% Y/Y (reported up 86%), down 3% Q/Q (reported down 2%), primarily due to lower technology and employee-related costs, including severance in the prior quarter Total provision for credit losses $129MM (impaired (US$MM)³ Q4 23 Net interest income (teb)³ Non-interest revenue Revenue (teb) ³ 3 Reported Q3 23 Q4 22 Q4 23 1,570 1,550 1,082 1,570 301 314 215 1,871 1,864 1,297 Adjusted¹ Q3 23 Q4 22 1,550 1,082 301 1,871 314 1,864 1,297 215 Expenses 1,146 1,175 617 1,070 1,097 616 PPPT² 725 689 680 801 767 681 Total PCL (recovery) 129 153 46 129 153 46 Income before Taxes 596 536 634 672 614 635 Net Income 486 431 488 543 489 489 Net Income (CDE$) 661 576 660 740 653 662 Efficiency Ratio (%) 61.3 63.0 47.6 57.1 58.8 47.5 ROE (%) 7.9 6.9 17.9 8.8 7.9 18.0 3.88 3.92 Net Income² and NIM³ Trends 3.96 3.87 3.80 provision of $109MM and performing provision of $20MM) 638 581 • Average loans & acceptances up 48% Y/Y, mainly due to Bank of the West and flat Q/Q 488 489 520 521 543 489 486 431 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Average deposits up 43% Y/Y and flat Q/Q -NIM (%) Reported Net Income ($MM) Adjusted Net Income ($MM) 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 pre-provision pre-tax earnings (PPPT) are non-GAAP measures. See slide 39 for more information and slide 43 for calculation of PPPT 3 Operating group revenue, NII, income taxes, income before taxes and net interest margin are stated on a taxable equivalent basis (teb). The teb adjustment (Q4'23 $7MM, Q3'23 $6MM, Q4'22 $6MM) is offset in Corporate Services. Efficiency ratio is calculated based on revenue (teb) BMOM Financial Results ⚫ December 1, 2023 18
View entire presentation