Financial Results slide image

Financial Results

BMO Capital Markets Strong revenue² and PPPT³ performance reflect improved market conditions • Adjusted¹ net income up 36% Y/Y (reported up 37%) Reported Adjusted¹ • • • Adjusted¹ PPPT³ up 39% Y/Y (reported up 40%) Revenue² up 19% Y/Y: Global Markets up 12% primarily due to higher equities trading revenue Investment and Corporate Banking up 29% due to higher M&A and underwriting activity Adjusted¹ and reported expenses up 9% Y/Y driven by higher performance-based compensation, higher technology and transaction-based costs Total provision for credit losses of $1MM (impaired provision of $11MM and recovery on performing loans of $10MM) ($MM)² Q4 23 Q3 23 Q4 22 Q4 23 Q3 23 Q4 22 Global Markets 951 870 851 951 870 851 I&CB 717 608 554 717 608 554 Revenue (teb) 1,668 1,478 1,405 1,668 1,478 1,405 Expenses 1,052 1,076 965 1,048 1,067 958 PPPT³ 616 402 440 620 411 447 Total PCL (recovery) 1 10 (18) 1 10 (18) Income before Taxes 615 392 458 619 401 465 Net Income 489 310 357 492 316 363 U.S. Net Income ($US) 127 71 11 127 74 14 Efficiency Ratio (%) 63.1 72.8 68.8 62.8 72.2 68.3 ROE (%) 15.8 10.2 11.3 15.9 10.4 11.5 Net Income¹ Trends 503 510 489 492 357 363 380 388 310 316 Q4'22 Q1'23 Reported Net Income ($MM) Q2'23 Q3'23 ■Adjusted Net Income ($MM) Q4'23 1 Adjusted results and measures are non-GAAP. See slide 39 for more information and slide 40 for adjustments to reported results 2 Operating group revenue, income before taxes and income taxes are stated on a taxable equivalent basis (teb). This teb adjustment (Q4'23 $86MM, Q3'23 $81MM, Q4'22 $61MM) is offset in Corporate Services. Efficiency ratio is calculated based on revenue (teb) 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 20
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