Q2 F2023 - Bank of the West Contribution & Financial Results
U.S. Personal & Commercial
Strong performance including the addition from Bank of the West
Figures that follow are in U.S. dollars:
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Adjusted net income up $173MM or 37% Y/Y (reported up $117MM
or 25%)
BOTW contributed $663MM to revenue, $446MM to adjusted¹
expenses (reported $523MM) and $163MM to adjusted¹ net
income (reported $107MM)
Adjusted¹ PPPT² up $281MM or 48% Y/Y (reported up $205MM or
35%), mainly due to the impact of BOTW, adjusted¹ underlying
results up $63MM (reported up $64MM)
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Revenue³ up $767MM or 67% Y/Y
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•
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NII³ up $689MM or 77% Y/Y due to impact of BOTW and higher
underlying net interest margins
NIR up $78MM or 31% Y/Y due to impact of BOTW
NIM³ up 4 bps Q/Q and 46 bps Y/Y; BOTW increased Q/Q and Y/Y
NIM by 5 bps
Adjusted¹ expenses up $486MM or 85% Y/Y (reported up $562MM
or 98%) due to impact of BOTW and higher underlying employee-
related costs
Total provision for credit losses $51MM (impaired provision $48MM
and provision on performing $3MM)
Average loans up $58.9B or 58% Y/Y and up $51.7M or 48% Q/Q,
including $55.4B from BOTW
Average deposits up $49.2B or 43% Y/Y; up $52.5B or 47% Q/Q,
including $55.2B from BOTW
(US$MM) 3
Revenue (teb)
Expenses
PPPT²
Total PCL (recovery)
Reported
Q2'23 | Q1'23 | Q2'22
Net interest income (teb) 1,589 1,109 900
Non-interest revenue
325 225
1,914 1,334 1,147
1,134 621
780 713
247
325
Adjusted¹
Q2'23 Q1'23 Q2'22
1,589 1,109
225
900
247
1,914 1,334
1,147
572
1,056 620
570
575
858
714
577
51
46
(30)
51
46
(30)
Income before Taxes
729 667
605
807
668
607
Net Income
581
520
464
638
521
465
Net Income (CDE$)
789
698
588
866
699
589
Efficiency Ratio (%)
ROE (%)
59.3
46.5
49.8
55.2
46.4
49.7
9.6
19.2
17.3
10.6
19.2
17.3
Net Income¹ and NIM³ Trends
3.88
3.92
3.96
638
163
581
464 465
445 446
488 489
520 521
475
Q2'22
Q3'22
Q4'22
Q1'23
Reported Net Income ($MM)
Adjusted Net Income ($MM) ☐ BOTW
Q2'23
--NIM (%)
3.70
3.50
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 Operating group revenue, NII, income taxes and net interest margin are stated on a taxable equivalent basis (teb). This teb adjustment (Q2'23 US$6MM, Q1'23 US$6MM, Q2'22 US$4MM) is offset in Corporate Services.
Efficiency ratio is calculated based on revenue (teb)
BMOM
Financial Results May 24, 2023
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