BMO Financial Group Reports Fourth Quarter and Fiscal 2020 Results
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Financial Results Highlights
Fourth Quarter 2020 Compared With Fourth Quarter 2019:
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Net income4 of $1,584 million, up 33%; adjusted net income1 of $1,610 million, up $3 million from the prior year
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Reported EPS2 of $2.37, up 33%; adjusted EPS1,2 of $2.41, compared with $2.43 in the prior year
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Revenue, net of CCPB3, of $5,986 million, up 4%
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Provision for credit losses (PCL) of $432 million, compared with $253 million; current quarter includes PCL on performing loans of $93 million
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ROE of 12.4%, up from 9.9%; adjusted ROE1 of 12.6%, compared with 13.5%
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Common Equity Tier 1 Ratio of 11.9%, up from 11.4% in the prior year
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Dividend of $1.06, unchanged from the prior quarter and the prior year
Fiscal 2020 Compared With Fiscal 2019:
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Net income4 of $5,097 million, compared with $5,758 million; adjusted net income1 of $5,201 million, compared with $6,249 million
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Reported EPS2 of $7.55, compared with $8.66; adjusted EPS1,2 of $7.71, compared with $9.43
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Revenue, net of CCPB3, of $23,478 million, up 3%
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Provision for credit losses of $2,953 million, compared with $872 million, including PCL on performing loans of $1,431 million
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ROE of 10.1%, compared with 12.6%; adjusted ROE1 of 10.3%, compared with 13.7%
TORONTO, Dec. 1, 2020 /CNW/ - For the fourth quarter ended October 31, 2020, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $1,584 million or $2.37 per share on a reported basis, and net income of $1,610 million or $2.41 per share on an adjusted basis.
"BMO continued to demonstrate strong operating momentum this quarter, delivering adjusted earnings of $1.6 billion and adjusted earnings per share of $2.41, with pre-provision, pre-tax earnings up 7% from last year, good operating leverage and an efficiency ratio of 58.7%," said Darryl White, Chief Executive Officer, BMO Financial Group.
"We entered the year in a strong position with good momentum across our businesses. Throughout the challenges brought on by the pandemic we have been on the front line of the economic recovery, supporting our customers, communities and employees through uncertainty and hardship. Our results for the year are a testament to the resilience and diversification of our businesses and our ability to quickly adapt to the evolving environment, while actively delivering against our strategic priorities. In 2020, adjusted earnings per share were $7.71, having appropriately provisioned for loan losses. Adjusted pre-provision, pre-tax earnings increased 7%, as we held expenses stable to last year, delivered above-target positive operating leverage of 2.7%, improved our efficiency by 160 basis points from last year and maintained strong capital and liquidity positions."
"As we look ahead to 2021, we are continuing to accelerate the execution of our strategy and our Purpose, to Boldly Grow the Good in business and life. We are recognized as a global leader in sustainability, including being the highest rated bank and placing 15th overall among the 5,500 companies reviewed by the Wall Street Journal in its recent ranking of the Most Sustainably Managed Companies in the World, and scoring in the top 10% of banks on the Dow Jones Sustainability Indices. We're positioning our businesses for profitable growth, providing unwavering support for our customers and championing an inclusive recovery for our communities. We are focused on sustaining our momentum and competitive strengths, leveraging strong client loyalty and a winning culture to continue to build a digitally enabled, highly efficient and future ready bank," concluded Mr. White.
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Financial Results Highlights
Fourth Quarter 2020 Compared With Fourth Quarter 2019:
-
Net income4 of $1,584 million, up 33%; adjusted net income1 of $1,610 million, up $3 million from the prior year
-
Reported EPS2 of $2.37, up 33%; adjusted EPS1,2 of $2.41, compared with $2.43 in the prior year
-
Revenue, net of CCPB3, of $5,986 million, up 4%
-
Provision for credit losses (PCL) of $432 million, compared with $253 million; current quarter includes PCL on performing loans of $93 million
-
ROE of 12.4%, up from 9.9%; adjusted ROE1 of 12.6%, compared with 13.5%
-
Common Equity Tier 1 Ratio of 11.9%, up from 11.4% in the prior year
-
Dividend of $1.06, unchanged from the prior quarter and the prior year
Fiscal 2020 Compared With Fiscal 2019:
-
Net income4 of $5,097 million, compared with $5,758 million; adjusted net income1 of $5,201 million, compared with $6,249 million
-
Reported EPS2 of $7.55, compared with $8.66; adjusted EPS1,2 of $7.71, compared with $9.43
-
Revenue, net of CCPB3, of $23,478 million, up 3%
-
Provision for credit losses of $2,953 million, compared with $872 million, including PCL on performing loans of $1,431 million
-
ROE of 10.1%, compared with 12.6%; adjusted ROE1 of 10.3%, compared with 13.7%
TORONTO, Dec. 1, 2020 /CNW/ - For the fourth quarter ended October 31, 2020, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $1,584 million or $2.37 per share on a reported basis, and net income of $1,610 million or $2.41 per share on an adjusted basis.
"BMO continued to demonstrate strong operating momentum this quarter, delivering adjusted earnings of $1.6 billion and adjusted earnings per share of $2.41, with pre-provision, pre-tax earnings up 7% from last year, good operating leverage and an efficiency ratio of 58.7%," said Darryl White, Chief Executive Officer, BMO Financial Group.
"We entered the year in a strong position with good momentum across our businesses. Throughout the challenges brought on by the pandemic we have been on the front line of the economic recovery, supporting our customers, communities and employees through uncertainty and hardship. Our results for the year are a testament to the resilience and diversification of our businesses and our ability to quickly adapt to the evolving environment, while actively delivering against our strategic priorities. In 2020, adjusted earnings per share were $7.71, having appropriately provisioned for loan losses. Adjusted pre-provision, pre-tax earnings increased 7%, as we held expenses stable to last year, delivered above-target positive operating leverage of 2.7%, improved our efficiency by 160 basis points from last year and maintained strong capital and liquidity positions."
"As we look ahead to 2021, we are continuing to accelerate the execution of our strategy and our Purpose, to Boldly Grow the Good in business and life. We are recognized as a global leader in sustainability, including being the highest rated bank and placing 15th overall among the 5,500 companies reviewed by the Wall Street Journal in its recent ranking of the Most Sustainably Managed Companies in the World, and scoring in the top 10% of banks on the Dow Jones Sustainability Indices. We're positioning our businesses for profitable growth, providing unwavering support for our customers and championing an inclusive recovery for our communities. We are focused on sustaining our momentum and competitive strengths, leveraging strong client loyalty and a winning culture to continue to build a digitally enabled, highly efficient and future ready bank," concluded Mr. White.
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