Financial Results
BMO Wealth Management
Good growth in client assets offset by deposit migration and higher expenses
.
•
Adjusted¹ and reported net income down 12% Y/Y
Wealth and Asset Management adjusted¹ net income
down 3% Y/Y (reported down 4%)
Revenue up 8% due to BOTW; underlying performance
reflects growth in client assets, partially offset by lower
net interest income due to lower balances and margins
AUM down 2% and AUA down 4% Q/Q due to weaker
global markets and attrition of lower-yielding U.S.
institutional assets under administration, partially offset
by favourable foreign exchange movements
Insurance net income down 36% Y/Y due to unfavourable
market movements in the current year compared with
favourable movements in the prior year
Adjusted¹ and reported expenses up 12% Y/Y primarily
due to BOTW, and higher employee-related and
technology costs
($MM)
Gross Revenue
CCPB
Net Revenue²
Expenses
PPPT³
Reported
Adjusted¹
Q4 23
Q3 23
1,508 1,422
151
4
1,357 1,418
1,012
1,011
Q4 22
930
(369)
1,299
901
Q4 23
1,508 1,422
151
4
Q3 23
Q4 22
930
(369)
1,357 1,418 1,299
1,010 1,009 900
345
407
398
347
409
399
1
7
3
1
7
3
Income before Taxes
344
400
395
346
402
396
Net Income
262
303
298
263
304
298
Wealth and Asset Management NI
212
222
221
213
223
221
Insurance NI
50
81
77
50
81
77
AUM/AUA ($B)
749
773
730
749
773
730
Efficiency Ratio² (%)
74.6
71.4
69.3
74.4
71.2
69.2
ROE (%)
15.6
17.8
21.7
15.7
17.8
21.8
Total PCL (recovery)
Net Income¹ Trends
298 298
303
304
277
278
284 285
262 263
77 77
70
70
63
63
81
81
50 50
221 221
207 208
221 222
222 223
212 213
Reported Adjusted Reported Adjusted Reported Adjusted
Q4'22
Reported Adjusted Reported Adjusted
Q1'23
Q2'23
Wealth and Asset Management ($MM)
Q3'23
Q4'23
Insurance ($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 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 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
BMOM
Financial Results ⚫ December 1, 2023
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