BMO's Third Quarter 2023 Report to Shareholders, including the unaudited interim consolidated financial statements for the period ended
Financial Results Highlights
Third Quarter 2023 Compared with Third Quarter 2022:
- Net income of
$1,454 million , compared with$1,365 million ; adjusted net income1,3 of$2,037 million , compared with$2,132 million - Reported earnings per share (EPS)2 of
$1.97 , compared with$1.95 ; adjusted EPS1,2,3 of$2.78 , compared with$3.09 - Provision for credit losses (PCL) of
$492 million , compared with$136 million - Return on equity (ROE) of 8.3%, compared with 8.8%; adjusted ROE1,3 of 11.7%, compared with 13.8%
- Common Equity Tier 1 (CET1) Ratio4 of 12.3%, compared with 15.8%
Year-to-Date 2023 Compared with Year-to-Date 2022:
- Net income of
$2,760 million , compared with$9,054 million ; adjusted net income1,3 of$6,525 million , compared with$6,903 million - Reported EPS2 of
$3.60 , compared with$13.45 ; adjusted EPS1,2,3 of$8.93 , compared with$10.20 - PCL of
$1,732 million , compared with$87 million ; adjusted PCL1,3 of$1,027 million , compared with$87 million - ROE of 5.1%, compared with 21.1%; adjusted ROE1,3 of 12.6%, compared with 16.0%
"We continue to deliver solid financial results reflecting the strength, diversity and active management of our businesses in an evolving environment. Record revenue in Canadian Personal and Commercial Banking and contribution from
"We're accelerating efficiency initiatives and remain focused on dynamically positioning the bank for long-term growth and sustained profitability through disciplined expense and risk management.
"We're confident in the power of our integrated North American franchise and our strategy to help our clients make real financial progress. We were recently ranked first in customer satisfaction with online banking in the
Concurrent with the release of results, BMO announced a fourth quarter 2023 dividend of $1.47 per common share, unchanged from the prior quarter and an increase of
Caution
The foregoing section contains forward-looking statements. Please refer to the Caution Regarding Forward-Looking Statements.
(1) | Results and measures in this document are presented on a generally accepted accounting principles (GAAP) basis. They are also presented on an adjusted basis that excludes the impact of certain specified items from reported results. Adjusted results and ratios are non-GAAP and are detailed for all reported periods in the Non-GAAP and Other Financial Measures section. For details on the composition of non-GAAP amounts, measures and ratios, as well as supplementary financial measures, refer to the Glossary of Financial Terms in our Third Quarter 2023 Report to Shareholders. |
(2) | All EPS measures in this document refer to diluted EPS, unless specified otherwise. |
(3) | Q3-2023 reported net income included acquisition and integration costs of |
(4) | The CET1 Ratio is disclosed in accordance with the Office of the Superintendent |
(5) | For more information, refer to www.jdpower.com/business. |
Note: All ratios and percentage changes in this document are based on unrounded numbers. |
Recent Acquisitions
On
On closing, we recognized purchase accounting fair value marks on
On
For more information on the acquisition of
Third Quarter 2023 Performance Review
Adjusted results and ratios in this section are on a non-GAAP basis. Refer to the Non-GAAP and Other Financial Measures section for further information on adjusting items. The order in which the impact on net income is discussed in this section follows the order of revenue, expenses and provision for credit losses, regardless of their relative impact.
Adjusted results in the current quarter and the prior year excluded the following items:
- Acquisition and integration costs of
$370 million ($497 million pre-tax) in the current quarter and$62 million ($84 million pre-tax) in the prior year, recorded in non-interest expense. The current quarter included$363 million ($487 million pre-tax) related toBank of the West . - Amortization of acquisition-related intangibles assets of
$85 million ($115 million pre-tax) in the current quarter and$5 million ($7 million pre-tax) in the prior year, recorded in non-interest expense. The current quarter included$76 million ($102 million pre-tax) related toBank of the West . - A charge of
$131 million ($160 million pre-tax) related to tax measures enacted by the Canadian government that amended the GST/HST definition for financial services, comprising$138 million pre-tax recorded in non-interest revenue and$22 million pre-tax recorded in non-interest expense. - A net recovery of
$3 million ($4 million pre-tax) related to a lawsuit associated with a predecessor bank,M&I Marshall and Ilsley Bank , comprising a$3 million pre-tax interest expense, net of a$7 million pre-tax adjustment to the provision recorded in non-interest expense. - A loss of
$694 million ($945 million pre-tax) in the prior year related to the management of the impact of interest rate changes between the announcement and closing of theBank of the West acquisition on its fair value and goodwill. - Expenses of
$6 million ($7 million pre-tax) in the prior year related to the sale of our EMEA andU.S. Asset Management business.
The inclusion of
Reported net income increased 7% from the prior year, primarily due to the prior-year loss related to fair value management actions, partially offset by higher acquisition-related costs and the impact of Canadian tax measures noted above. Adjusted net income decreased 4%, with higher revenue more than offset by higher expenses and higher provisions for credit losses. Reported net income increased in BMO Capital Markets and decreased in Canadian P&C and BMO Wealth Management.
The impact of the acquisition of
Reported | Adjusted (1) | ||||||
(Canadian $ in millions) | BMO ex. BOTW | BOTW | BMO | BMO ex. BOTW | BOTW | BMO | |
Q3-2023 Summary Income Statement | |||||||
Net interest income | 4,016 | 889 | 4,905 | 4,019 | 889 | 4,908 | |
Non-interest revenue | 2,862 | 162 | 3,024 | 3,000 | 162 | 3,162 | |
Revenue | 6,878 | 1,051 | 7,929 | 7,019 | 1,051 | 8,070 | |
Insurance claims, commissions and changes in policy benefit liabilities (CCPB) | 4 | - | 4 | 4 | - | 4 | |
Revenue, net of CCPB | 6,874 | 1,051 | 7,925 | 7,015 | 1,051 | 8,066 | |
Provision for credit losses on impaired loans | 313 | 20 | 333 | 313 | 20 | 333 | |
Provision for credit losses on performing loans | 81 | 78 | 159 | 81 | 78 | 159 | |
Total provision for credit losses | 394 | 98 | 492 | 394 | 98 | 492 | |
Non-interest expense | 4,300 | 1,338 | 5,638 | 4,262 | 749 | 5,011 | |
Provision for (recovery of) income taxes | 454 | (113) | 341 | 489 | 37 | 526 | |
Net income (loss) | 1,726 | (272) | 1,454 | 1,870 | 167 | 2,037 |
(1) | Adjusted results exclude certain items from reported results and are used to calculate our adjusted measures as presented in the above table. Management assesses performance on a reported basis and an adjusted basis, and considers both to be useful. Revenue, net of CCPB, and adjusted results in this table are non-GAAP. For further information, refer to the Non-GAAP and Other Financial Measures section, and for details on the composition of non-GAAP amounts, as well as supplementary financial measures, refer to the Glossary of Financial Terms in our Third Quarter 2023 Report to Shareholders. |
Canadian P&C
Reported net income was $915 million, a decrease of $50 million or 5% from the prior year, and adjusted net income was $923 million, a decrease of $42 million or 4%. Results reflected a 10% increase in revenue due to higher net interest income, driven by balance growth and higher margins, and higher non-interest revenue, more than offset by higher expenses and a higher provision for credit losses.
Reported net income was $576 million, an increase of $8 million or 1% from the prior year, and adjusted net income was $653 million, an increase of $84 million or 14%. The impact of the stronger U.S. dollar increased net income by 4% on a reported basis and 5% on an adjusted basis.
On a
BMO Wealth Management
Reported net income was $303 million and adjusted net income was $304 million, both a decrease of $21 million or 7% from the prior year. Wealth and Asset Management reported net income was $222 million and adjusted net income was $223 million, both a decrease of $41 million or 16%, as the inclusion of
Reported net income was $310 million, an increase of $48 million or 18% from the prior year, and adjusted net income was $316 million, an increase of $50 million or 18%. Results reflected revenue growth of 17%, with higher revenue in both Global Markets and Investment and Corporate Banking partially offset by higher expenses and a higher provision for credit losses.
Corporate Services
Reported net loss was $650 million, compared with reported net loss of $754 million in the prior year, and adjusted net loss was $159 million, compared with adjusted net income of $7 million. Reported results decreased, primarily due to the adjusting items noted above. Adjusted results decreased due to lower revenue and higher expenses.
Capital
BMO's Common Equity Tier 1 (CET1) Ratio was 12.3% as at
Credit Quality
Total provision for credit losses was $492 million, compared with a provision of $136 million in the prior year. The total provision for credit losses as a percentage of average net loans and acceptances ratio was 30 basis points, compared with 10 basis points in the prior year. The provision for credit losses on impaired loans was $333 million, an increase of $229 million from the prior year. The provision for credit losses on impaired loans as a percentage of average net loans and acceptances ratio was 21 basis points, compared with 8 basis points in the prior year. The provision for credit losses on performing loans was $159 million, an increase of $127 million from the prior year. The $159 million provision for credit losses on performing loans in the current quarter primarily reflected portfolio credit migration. The $32 million provision for credit losses in the prior year reflected a deteriorating economic outlook and balance growth, largely offset by continued reduction in pandemic uncertainty and positive portfolio migration.
Refer to the Critical Accounting Estimates and Judgments section of BMO's 2022 Annual Report and Note 4 of our audited annual consolidated financial statements for further information on the allowance for credit losses as at
Supporting a Sustainable and Inclusive Future
BMO has a deep sense of purpose – to be a champion for progress and a catalyst for change. We are leveraging our position as a leading financial services provider to create opportunities for our stakeholders and communities to make positive, sustainable change, because we believe that success can and must be mutual. In support of our customers, communities and employees, we:
- Provided an innovative new Sustainability-Linked Deposit (SLD) product to Zurn Elkay Water Solutions, a leading engineered water solutions client, linking the interest paid on a deposit account to a client's achievement of defined sustainability targets. This product is a unique addition to BMO's suite of sustainable and liquidity management offerings and demonstrates our ambition to be our clients' lead partner in the transition to a net-zero world.
- Announced a strategic relationship with Immigrant Services Calgary to provide specialized guidance and resources to Canadian newcomers, with on-site support at the BMO branch located inside the Gateway Newcomer Centre.
- Continued to drive progress for mental health treatment with a
$2 million donation toThe Royal Ottawa Health Care Group (The Royal) to support the newly-establishedBMO Innovative Clinic for Depression , providing increased treatment opportunities to people living with depression.
In addition, BMO's leadership continues to be acknowledged, including:
- Awarded #1 in Customer Satisfaction with Online Banking in the
J.D. Power (1) 2023 Canada Online Banking Satisfaction Study, demonstrating our continued commitment to meeting our customers where they are with human and digital experiences that help them make real financial progress. - Received a top score on the Disability Equality Index (DEI) for the eighth consecutive year and was named among the Best Places to Work for Disability Inclusion by Disability:IN
and The American Association of People with Disabilities (AAPD), a testament to our continued focus and progress to building an inclusive society for our employees and the communities we serve. - Included in
Corporate Knights ' listing ofCanada's Best 50 Corporate Citizens with top-quartile scores in board gender diversity and executive racial diversity, the only Canadian bank named to this listing. In addition, we also received a top-quartile Sustainable Revenue score, reflecting our commitment to sustainable financing and responsible investing.
(1) For more information, refer to www.jdpower.com/business. |
Caution
The foregoing sections contain forward-looking statements. Please refer to the Caution Regarding Forward-Looking Statements.
Regulatory Filings
BMO's continuous disclosure materials, including interim filings, annual Management's Discussion and Analysis and audited annual consolidated financial statements, Annual Information Form and Notice of Annual Meeting of Shareholders and Proxy Circular, are available on our website at www.bmo.com/investorrelations, on the Canadian Securities Administrators' website at www.sedarplus.ca, and on the EDGAR section of the
Non-GAAP and Other Financial Measures
Results and measures in this document are presented on a GAAP basis. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from our audited annual consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS). References to GAAP mean IFRS. We use a number of financial measures to assess our performance, as well as the performance of our operating segments, including amounts, measures and ratios that are presented on a non‑GAAP basis, as described below. We believe that these non‑GAAP amounts, measures and ratios, read together with our GAAP results, provide readers with a better understanding of how management assesses results.
Non-GAAP amounts, measures and ratios do not have standardized meanings under GAAP. They are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, or as a substitute for, GAAP results.
Certain information contained in BMO's Management's Discussion and Analysis dated
Our non-GAAP measures broadly fall into the following categories:
Adjusted measures and ratios
Management considers both reported and adjusted results and measures to be useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non-interest expense, provision for credit losses and income taxes, as detailed in the following table. Adjusted results and measures presented in this document are non-GAAP. Presenting results on both a reported basis and an adjusted basis permits readers to assess the impact of certain items on results for the periods presented, and to better assess results excluding those items that may not be reflective of ongoing business performance. As such, the presentation may facilitate readers' analysis of trends. Except as otherwise noted, management's discussion of changes in reported results in this document applies equally to changes in the corresponding adjusted results.
Measures net of insurance claims, commissions and changes in policy benefit liabilities (CCPB)
We also present reported and adjusted revenue on a basis that is net of insurance claims, commissions and changes in policy benefit liabilities (CCPB), and our efficiency ratio and operating leverage are calculated on a similar basis. Measures and ratios presented on a basis net of CCPB are non-GAAP. Insurance revenue can experience variability arising from fluctuations in the fair value of insurance assets, caused by movements in interest rates and equity markets. The investments that support policy benefit liabilities are predominantly fixed income assets recorded at fair value, with changes in fair value recorded in insurance revenue in the Consolidated Statement of Income. These fair value changes are largely offset by changes in the fair value of policy benefit liabilities, the impact of which is reflected in CCPB. The presentation and discussion of revenue, efficiency ratios and operating leverage on a net basis reduces this variability, which allows for a better assessment of operating results. For more information refer to the Insurance Claims, Commissions and Changes in Policy Benefit Liabilities section in our Third Quarter 2023 Report to Shareholders.
Tangible common equity and return on tangible common equity
Tangible common equity is calculated as common shareholders' equity less goodwill and acquisition-related intangible assets, net of related deferred tax liabilities. Return on tangible common equity is commonly used in the North American banking industry and is meaningful because it measures the performance of businesses consistently, whether they were acquired or developed organically.
Caution
This Non-GAAP and Other Financial Measures section contains forward-looking statements. Please refer to the Caution Regarding Forward-Looking Statements.
Non-GAAP and Other Financial Measures
(Canadian $ in millions, except as noted) | Q3-2023 | Q2-2023 | Q3-2022 | YTD-2023 | YTD-2022 |
Reported Results | |||||
Net interest income | 4,905 | 4,814 | 4,197 | 13,740 | 12,118 |
Non-interest revenue | 3,024 | 3,626 | 1,902 | 9,099 | 11,022 |
Revenue | 7,929 | 8,440 | 6,099 | 22,839 | 23,140 |
Insurance claims, commissions and changes in policy benefit liabilities (CCPB) | (4) | (591) | (413) | (1,788) | 314 |
Revenue, net of CCPB | 7,925 | 7,849 | 5,686 | 21,051 | 23,454 |
Provision for credit losses | (492) | (1,023) | (136) | (1,732) | (87) |
Non-interest expense | (5,638) | (5,573) | (3,859) | (15,632) | (11,418) |
Income before income taxes | 1,795 | 1,253 | 1,691 | 3,687 | 11,949 |
Provision for income taxes | (341) | (194) | (326) | (927) | (2,895) |
Net income | 1,454 | 1,059 | 1,365 | 2,760 | 9,054 |
Diluted EPS ($) | 1.97 | 1.30 | 1.95 | 3.60 | 13.45 |
Adjusting Items Impacting Revenue (Pre-tax) | |||||
Impact of divestitures (1) | - | - | - | - | (21) |
Management of fair value changes on the purchase of | - | - | (945) | (2,011) | 3,172 |
Legal provision (3) | (3) | (7) | - | (16) | - |
Impact of Canadian tax measures (4) | (138) | - | - | (138) | - |
Impact of adjusting items on revenue (pre-tax) | (141) | (7) | (945) | (2,165) | 3,151 |
Adjusting Items Impacting Provision for Credit Losses (Pre-tax) | |||||
Initial provision for credit losses on purchased performing loans (pre-tax) (5) | - | (705) | - | (705) | - |
Adjusting Items Impacting Non-Interest Expense (Pre-tax) | |||||
Acquisition and integration costs (6) | (497) | (727) | (84) | (1,463) | (133) |
Amortization of acquisition-related intangible assets (7) | (115) | (115) | (7) | (238) | (23) |
Impact of divestitures (1) | - | - | (7) | - | (22) |
Legal provision (3) | 7 | - | - | 5 | - |
Impact of Canadian tax measures (4) | (22) | - | - | (22) | - |
Impact of adjusting items on non-interest expense (pre-tax) | (627) | (842) | (98) | (1,718) | (178) |
Impact of adjusting items on reported net income (pre-tax) | (768) | (1,554) | (1,043) | (4,588) | 2,973 |
Adjusting Items Impacting Revenue (After-tax) | |||||
Impact of divestitures (1) | - | - | - | - | (23) |
Management of fair value changes on the purchase of | - | - | (694) | (1,461) | 2,331 |
Legal provision (3) | (2) | (6) | - | (13) | - |
Impact of Canadian tax measures (4) | (115) | - | - | (115) | - |
Impact of adjusting items on revenue (after-tax) | (117) | (6) | (694) | (1,589) | 2,308 |
Adjusting Items Impacting Provision for Credit Losses (After-tax) | |||||
Initial provision for credit losses on purchased performing loans (after-tax) (5) | - | (517) | - | (517) | - |
Adjusting Items Impacting Non-Interest Expense (After-tax) | |||||
Acquisition and integration costs (6) | (370) | (549) | (62) | (1,100) | (100) |
Amortization of acquisition-related intangible assets (7) | (85) | (85) | (5) | (176) | (17) |
Impact of divestitures (1) | - | - | (6) | - | (40) |
Legal provision (3) | 5 | - | - | 4 | - |
Impact of Canadian tax measures (4) | (16) | - | - | (16) | - |
Impact of adjusting items on non-interest expense (after-tax) | (466) | (634) | (73) | (1,288) | (157) |
Adjusting Items Impacting Provision for Income Taxes | |||||
Impact of Canadian tax measures (4) | - | - | - | (371) | - |
Impact of adjusting items on reported net income (after-tax) | (583) | (1,157) | (767) | (3,765) | 2,151 |
Impact on diluted EPS ($) | (0.81) | (1.63) | (1.14) | (5.33) | 3.25 |
Adjusted Results | |||||
Net interest income | 4,908 | 4,821 | 4,159 | 14,139 | 11,913 |
Non-interest revenue | 3,162 | 3,626 | 2,885 | 10,865 | 8,076 |
Revenue | 8,070 | 8,447 | 7,044 | 25,004 | 19,989 |
Insurance claims, commissions and changes in policy benefit liabilities (CCPB) | (4) | (591) | (413) | (1,788) | 314 |
Revenue, net of CCPB | 8,066 | 7,856 | 6,631 | 23,216 | 20,303 |
Provision for credit losses | (492) | (318) | (136) | (1,027) | (87) |
Non-interest expense | (5,011) | (4,731) | (3,761) | (13,914) | (11,240) |
Income before income taxes | 2,563 | 2,807 | 2,734 | 8,275 | 8,976 |
Provision for income taxes | (526) | (591) | (602) | (1,750) | (2,073) |
Net income | 2,037 | 2,216 | 2,132 | 6,525 | 6,903 |
Diluted EPS ($) | 2.78 | 2.93 | 3.09 | 8.93 | 10.20 |
(1) | Reported net income included the impact of divestitures of our EMEA and |
(2) | Reported net income included revenue (losses) related to the acquisition of |
(3) | Q3-2023 reported net income included a net recovery of |
(4) | Reported net income included the impact of certain tax measures enacted by the Canadian government. Q3-2023 included a charge of |
(5) | Q2-2023 reported net income included an initial provision for credit losses of |
(6) | Reported net income included acquisition and integration costs recorded in non-interest expense. Costs related to the acquisition of |
(7) | Reported net income included amortization of acquisition-related intangible assets recorded in non-interest expense in the related operating group: Q3-2023 and Q2-2023 both included |
Summary of Reported and Adjusted Results by
BMO Wealth | Corporate | |||||||
(Canadian $ in millions, except as noted) | Canadian P&C | Total P&C | Management | Markets | Services | (US $ in millions) | ||
Q3-2023 | ||||||||
Reported net income (loss) | 915 | 576 | 1,491 | 303 | 310 | (650) | 1,454 | 364 |
Acquisition and integration costs | 6 | - | 6 | - | 1 | 363 | 370 | 275 |
Amortization of acquisition-related intangible assets | 2 | 77 | 79 | 1 | 5 | - | 85 | 60 |
Impact of Canadian tax measures | - | - | - | - | - | 131 | 131 | - |
Legal provision | - | - | - | - | - | (3) | (3) | (2) |
Adjusted net income (loss) | 923 | 653 | 1,576 | 304 | 316 | (159) | 2,037 | 697 |
Q2-2023 | ||||||||
Reported net income (loss) | 861 | 789 | 1,650 | 284 | 380 | (1,255) | 1,059 | (104) |
Acquisition and integration costs | 2 | - | 2 | - | 2 | 545 | 549 | 400 |
Amortization of acquisition-related intangible assets | 1 | 77 | 78 | 1 | 6 | - | 85 | 61 |
Legal provision | - | - | - | - | - | 6 | 6 | 4 |
Initial provision for credit losses on purchased | ||||||||
performing loans | - | - | - | - | - | 517 | 517 | 379 |
Adjusted net income (loss) | 864 | 866 | 1,730 | 285 | 388 | (187) | 2,216 | 740 |
Q3-2022 | ||||||||
Reported net income (loss) | 965 | 568 | 1,533 | 324 | 262 | (754) | 1,365 | (28) |
Acquisition and integration costs | - | - | - | - | 1 | 61 | 62 | 49 |
Amortization of acquisition-related intangible assets | - | 1 | 1 | 1 | 3 | - | 5 | 5 |
Impact of divestitures | - | - | - | - | - | 6 | 6 | - |
Management of fair value changes on the purchase of | ||||||||
- | - | - | - | - | 694 | 694 | 545 | |
Adjusted net income (loss) | 965 | 569 | 1,534 | 325 | 266 | 7 | 2,132 | 571 |
YTD-2023 | ||||||||
Reported net income (loss) | 2,756 | 2,063 | 4,819 | 864 | 1,193 | (4,116) | 2,760 | (298) |
Acquisition and integration costs | 8 | - | 8 | - | 6 | 1,086 | 1,100 | 807 |
Amortization of acquisition-related intangible assets | 3 | 155 | 158 | 3 | 15 | - | 176 | 125 |
Management of fair value changes on the purchase of | ||||||||
- | - | - | - | - | 1,461 | 1,461 | 1,093 | |
Legal provision | - | - | - | - | - | 9 | 9 | 7 |
Impact of Canadian tax measures | - | - | - | - | - | 502 | 502 | - |
Initial provision for credit losses on purchased | ||||||||
performing loans | - | - | - | - | - | 517 | 517 | 379 |
Adjusted net income (loss) | 2,767 | 2,218 | 4,985 | 867 | 1,214 | (541) | 6,525 | 2,113 |
YTD-2022 | ||||||||
Reported net income (loss) | 2,909 | 1,837 | 4,746 | 953 | 1,415 | 1,940 | 9,054 | 3,773 |
Acquisition and integration costs | - | - | - | - | 6 | 94 | 100 | 79 |
Amortization of acquisition-related intangible assets | 1 | 3 | 4 | 3 | 10 | - | 17 | 13 |
Impact of divestitures | - | - | - | - | - | 63 | 63 | (42) |
Management of fair value changes on the purchase of | ||||||||
- | - | - | - | - | (2,331) | (2,331) | (1,842) | |
Adjusted net income (loss) | 2,910 | 1,840 | 4,750 | 956 | 1,431 | (234) | 6,903 | 1,981 |
(1) | |
Refer to footnotes (1) to (7) in the Non-GAAP and Other Financial Measures table for details on adjusting items. |
Return on Equity and Return on Tangible Common Equity
(Canadian $ in millions, except as noted) | Q3-2023 | Q2-2023 | Q3-2022 | YTD-2023 | YTD-2022 |
Reported net income | 1,454 | 1,059 | 1,365 | 2,760 | 9,054 |
Net income attributable to non-controlling interest in subsidiaries | 2 | 3 | - | 5 | - |
Net income attributable to bank shareholders | 1,452 | 1,056 | 1,365 | 2,755 | 9,054 |
Dividends on preferred shares and distributions on other equity instruments | (41) | (127) | (47) | (206) | (154) |
Net income available to common shareholders (A) | 1,411 | 929 | 1,318 | 2,549 | 8,900 |
After-tax amortization of acquisition-related intangible assets | 85 | 85 | 5 | 176 | 17 |
Net income available to common shareholders after adjusting for amortization of | |||||
acquisition-related intangible assets (B) | 1,496 | 1,014 | 1,323 | 2,725 | 8,917 |
After-tax impact of other adjusting items (1) | 498 | 1,072 | 762 | 3,589 | (2,168) |
Adjusted net income available to common shareholders (C) | 1,994 | 2,086 | 2,085 | 6,314 | 6,749 |
Average common shareholders' equity (D) | 67,823 | 67,792 | 59,707 | 67,204 | 56,304 |
Return on equity (%) (= A/D) (2) | 8.3 | 5.6 | 8.8 | 5.1 | 21.1 |
Adjusted return on equity (%) (= C/D) (2) | 11.7 | 12.6 | 13.8 | 12.6 | 16.0 |
Average tangible common equity (E) (3) | 49,915 | 49,818 | 54,846 | 53,579 | 51,437 |
Return on tangible common equity (%) (= B/E) (2) | 11.9 | 8.4 | 9.6 | 6.8 | 23.2 |
Adjusted return on tangible common equity (%) (= | 15.8 | 17.2 | 15.1 | 15.8 | 17.5 |
(1) | Refer to footnotes (1) to (7) in the Non-GAAP and Other Financial Measures table for details on adjusting items. |
(2) | Quarterly calculations are on an annualized basis. |
(3) | Average tangible common equity is average common shareholders' equity (D above) adjusted for goodwill of |
Caution Regarding Forward-Looking Statements
By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, both general and specific in nature. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that our assumptions may not be correct, and that actual results may differ materially from such predictions, forecasts, conclusions or projections. We caution readers of this document not to place undue reliance on our forward-looking statements, as a number of factors – many of which are beyond our control and the effects of which can be difficult to predict – could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.
The future outcomes that relate to forward-looking statements may be influenced by many factors, including, but not limited to: general economic and market conditions in the countries in which we operate, including labour challenges; the impact of adverse developments affecting the
We caution that the foregoing list is not exhaustive of all possible factors. Other factors and risks could adversely affect our results. For more information, please refer to the discussion in the Risks That May Affect Future Results section, and the sections related to credit and counterparty, market, insurance, liquidity and funding, operational non-financial, legal and regulatory, strategic, environmental and social, and reputation risk, in the Enterprise-Wide Risk Management section of BMO's 2022 Annual Report, and the Risk Management section in our Third Quarter 2023 Report to Shareholders, all of which outline certain key factors and risks that may affect our future results. Investors and others should carefully consider these factors and risks, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. We do not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by the organization or on its behalf, except as required by law. The forward-looking information contained in our Third Quarter 2023 Report to Shareholders is presented for the purpose of assisting shareholders and analysts in understanding our financial position as at and for the periods ended on the dates presented, as well as our strategic priorities and objectives, and may not be appropriate for other purposes.
Material economic assumptions underlying the forward-looking statements contained in this document include those set out in the Economic Developments and Outlook section of BMO's 2022 Annual Report, as updated in the Economic Developments and Outlook section in our Third Quarter 2023 Report to Shareholders, as well as in the Allowance for Credit Losses section of BMO's 2022 Annual Report, as updated in the Allowance for Credit Losses section in our Third Quarter 2023 Report to Shareholders. Assumptions about the performance of the Canadian and
In determining our expectations for economic growth, we primarily consider historical economic data, past relationships between economic and financial variables, changes in government policies, and the risks to the domestic and global economy.
INVESTOR AND MEDIA INFORMATION
Investor Presentation Materials
Interested parties are invited to visit BMO's website at www.bmo.com/investorrelations to review the 2022 Annual MD&A and audited annual consolidated financial statements, quarterly presentation materials and supplementary financial and regulatory information package.
Quarterly Conference Call and Webcast Presentations
Interested parties are also invited to listen to our quarterly conference call on
A live webcast of the call can be accessed on our website at www.bmo.com/investorrelations. A replay can also be accessed on the website.
Shareholder Dividend Reinvestment and Share Purchase Plan (DRIP) Average market price as defined under DRIP
For dividend information, change in shareholder address or to advise of duplicate mailings, please contact Telephone: 1-800-340-5021 ( Telephone: (514) 982-7800 (international) Fax: 1-888-453-0330 ( Fax: (416) 263-9394 (international) E-mail: service@computershare.com | For other shareholder information, please contact Shareholder Services Corporate Secretary's Department One Telephone: (416) 867-6785 E-mail: corp.secretary@bmo.com
For further information on this document, please contact Investor Relations Department P.O. Box 1,
To review financial results and regulatory filings and |
BMO's 2022 Annual MD&A, audited consolidated financial statements, annual information form and annual report on Form 40-F (filed with the U.S. Securities and Exchange Commission) are available online at www.bmo.com/investorrelations and at www.sedarplus.ca. Printed copies of the bank's complete 2022 audited consolidated financial statements are available free of charge upon request at 416-867-6785 or corp.secretary@bmo.com.
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