BMO Financial Group Reports First Quarter 2024 Results
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BMO's First Quarter 2024 Report to Shareholders, including the unaudited interim consolidated financial statements for the period ended January 31, 2024 are available online at www.bmo.com/investorrelations and at www.sedarplus.ca.
Financial Results Highlights
First Quarter 2024 Compared with First Quarter 2023:
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Net income of $1,292 million, compared with $133 million; adjusted net income1, 2 of $1,893 million, compared with $2,158 million
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Reported earnings per share (EPS)3 of $1.73, compared with $0.14; adjusted EPS1, 2, 3 of $2.56, compared with $3.06
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Provision for credit losses (PCL) of $627 million, compared with $217 million
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Return on equity (ROE) of 7.2%, compared with 0.6%; adjusted ROE1, 2 of 10.6%, compared with 12.9%
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Common Equity Tier 1 (CET1) Ratio4 of 12.8%, compared with 18.2%
Adjusted1, 2 results in the current quarter and the prior year excluded the following items:
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Impact of a U.S. Federal Deposit Insurance Corporation (FDIC) special assessment of $313 million ($417 million pre-tax) in the current quarter.
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A net accounting loss of $136 million ($164 million pre-tax) on the sale of a $9.6 billion (US$7.2 billion) portfolio of recreational vehicle loans related to balance sheet optimization in the current quarter.
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Acquisition and integration costs of $57 million ($76 million pre-tax) in the current quarter, and $181 million ($239 million pre-tax) in the prior year.
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Amortization of acquisition-related intangible assets of $84 million ($112 million pre-tax) in the current quarter, and $6 million ($8 million pre-tax) in the prior year.
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Impact of a lawsuit associated with a predecessor bank, M&I Marshall and Ilsley Bank, of $11 million ($15 million pre-tax) in the current quarter, and $6 million ($8 million pre-tax) in the prior year.
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Loss of $1,461 million ($2,011 million pre-tax) in the prior year related to the management of the impact of interest rate changes between the announcement and closing of the Bank of the West acquisition on its fair value and goodwill.
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A one-time tax expense of $371 million in the prior year related to certain tax measures enacted by the Canadian government.
TORONTO, Feb. 27, 2024 /CNW/ - For the first quarter ended January 31, 2024, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $1,292 million or $1.73 per share on a reported basis, and net income of $1,893 million or $2.56 per share on an adjusted basis.
"Against an uncertain economic outlook, we continued to demonstrate the strength and resilience of our diversified businesses and the benefit of strategic acquisitions. Although the environment has constrained revenue growth in market sensitive businesses in the near term, with the strength of our personal and commercial businesses and our sharp focus on positioning the bank effectively for long-term success by reducing expenses, optimizing our balance sheet, and growing customer relationships, we are poised to create significant value for our shareholders," said Darryl White, Chief Executive Officer, BMO Financial Group.
"With the integration of Bank of the West complete, we have achieved 100% of the US$800 million run-rate cost synergies to start the second quarter, and we're delivering incremental operational efficiencies across the enterprise, resulting in a sequential decline in our expense base. We further strengthened our capital position, with a CET1 ratio of 12.8%. Credit quality remains well-managed and in line with our expectations, underpinned by strong underwriting and a proven track record of superior risk management through the cycle.
"BMO's leadership in supporting a sustainable and inclusive future continued to be acknowledged, including ranking among the most sustainable companies on the Dow Jones Sustainability Indices. We are moving forward with a relentless focus on execution to drive continued client and revenue growth, bolstered by the full size and scale of our North American bank. Guided by our purpose and anchored by the strong foundation of our $1.3 trillion balance sheet, we are driving real financial progress for our customers and the communities we serve," concluded Mr. White.
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BMO's First Quarter 2024 Report to Shareholders, including the unaudited interim consolidated financial statements for the period ended January 31, 2024 are available online at www.bmo.com/investorrelations and at www.sedarplus.ca.
Financial Results Highlights
First Quarter 2024 Compared with First Quarter 2023:
-
Net income of $1,292 million, compared with $133 million; adjusted net income1, 2 of $1,893 million, compared with $2,158 million
-
Reported earnings per share (EPS)3 of $1.73, compared with $0.14; adjusted EPS1, 2, 3 of $2.56, compared with $3.06
-
Provision for credit losses (PCL) of $627 million, compared with $217 million
-
Return on equity (ROE) of 7.2%, compared with 0.6%; adjusted ROE1, 2 of 10.6%, compared with 12.9%
-
Common Equity Tier 1 (CET1) Ratio4 of 12.8%, compared with 18.2%
Adjusted1, 2 results in the current quarter and the prior year excluded the following items:
-
Impact of a U.S. Federal Deposit Insurance Corporation (FDIC) special assessment of $313 million ($417 million pre-tax) in the current quarter.
-
A net accounting loss of $136 million ($164 million pre-tax) on the sale of a $9.6 billion (US$7.2 billion) portfolio of recreational vehicle loans related to balance sheet optimization in the current quarter.
-
Acquisition and integration costs of $57 million ($76 million pre-tax) in the current quarter, and $181 million ($239 million pre-tax) in the prior year.
-
Amortization of acquisition-related intangible assets of $84 million ($112 million pre-tax) in the current quarter, and $6 million ($8 million pre-tax) in the prior year.
-
Impact of a lawsuit associated with a predecessor bank, M&I Marshall and Ilsley Bank, of $11 million ($15 million pre-tax) in the current quarter, and $6 million ($8 million pre-tax) in the prior year.
-
Loss of $1,461 million ($2,011 million pre-tax) in the prior year related to the management of the impact of interest rate changes between the announcement and closing of the Bank of the West acquisition on its fair value and goodwill.
-
A one-time tax expense of $371 million in the prior year related to certain tax measures enacted by the Canadian government.
TORONTO, Feb. 27, 2024 /CNW/ - For the first quarter ended January 31, 2024, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $1,292 million or $1.73 per share on a reported basis, and net income of $1,893 million or $2.56 per share on an adjusted basis.
"Against an uncertain economic outlook, we continued to demonstrate the strength and resilience of our diversified businesses and the benefit of strategic acquisitions. Although the environment has constrained revenue growth in market sensitive businesses in the near term, with the strength of our personal and commercial businesses and our sharp focus on positioning the bank effectively for long-term success by reducing expenses, optimizing our balance sheet, and growing customer relationships, we are poised to create significant value for our shareholders," said Darryl White, Chief Executive Officer, BMO Financial Group.
"With the integration of Bank of the West complete, we have achieved 100% of the US$800 million run-rate cost synergies to start the second quarter, and we're delivering incremental operational efficiencies across the enterprise, resulting in a sequential decline in our expense base. We further strengthened our capital position, with a CET1 ratio of 12.8%. Credit quality remains well-managed and in line with our expectations, underpinned by strong underwriting and a proven track record of superior risk management through the cycle.
"BMO's leadership in supporting a sustainable and inclusive future continued to be acknowledged, including ranking among the most sustainable companies on the Dow Jones Sustainability Indices. We are moving forward with a relentless focus on execution to drive continued client and revenue growth, bolstered by the full size and scale of our North American bank. Guided by our purpose and anchored by the strong foundation of our $1.3 trillion balance sheet, we are driving real financial progress for our customers and the communities we serve," concluded Mr. White.
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