Q2 F2023 - Bank of the West Contribution & Financial Results
Canadian Personal & Commercial Banking
Good Revenue and PPPT2 performance with positive operating leverage
•
Adjusted¹ and reported net income down 8% Y/Y due to
higher PCL
($MM)
.
Adjusted¹ and reported PPPT2 up 7% Y/Y
•
Revenue up 7% Y/Y
Reported
Adjusted¹
Net interest income
Non-interest revenue
Q2 23 Q1 23
1,983 2,030
563 599
Q2 22
Q2 23
Q1 23
Q2 22
1,763
1,983 2,030
1,763
622
2 5
563
599
622
Revenue
2,546 2,629 2,385
1,126 1,117 1,060
1,420 1,512 1,325
228 164
54
2,546 2,629 2,385
228
Income before Taxes
1,192 1,348 1,271
1,196
1,122 1,117 1,059
1,424 1,512 1,326
164
1,348 1,272
54
Net Income
861
980
940
864
980
941
Efficiency Ratio (%)
ROE (%)
44.2
42.5
44.5
44.1
42.5
44.5
25.1
30.7
32.5
25.2
30.7
32.6
NII up 12% Y/Y with strong balance growth and higher
margins
NIM flat Q/Q and up 4 bps Y/Y
NIR down 9% Y/Y due to lower gains on investments in
our Commercial Banking business and lower mutual fund
distribution fee revenue
Adjusted¹ and reported expenses up 6% Y/Y reflecting
higher employee-related expenses, including expanded
sales force and higher salaries, as well as higher
technology costs
Adjusted¹ operating leverage 0.8% (reported 0.6%)
provision of $173MM and performing provision of $55MM)
Expenses
PPPT²
Total PCL
•
Total provision for credit losses $228MM (Impaired
Net Income and NIM Trends
2.66
2.72
2.66
2.70
2.70
•
Average loans up 10% Y/Y and 1% Q/Q
Personal and Business Banking up 8% Y/Y and flat Q/Q
Cards up 22% Y/Y and 2% Q/Q
940
965
917
980
861
Commercial³ up 12% Y/Y and 2% Q/Q
Average deposits up 13% Y/Y and 3% Q/Q
Q2'22
Q3'22
Q4'22
Q1'23
Q2'23
Reported Net Income ($MM)
NIM (%)
1 Adjusted results and measures are non-GAAP, see slide 40 for more information and slide 42 for adjustments to reported results
2 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
3 Commercial loan growth excludes corporate cards and small business cards
BMOM
Financial Results May 24, 2023
•
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