BMO Financial Group Reports Fourth Quarter and Fiscal 2023 Results
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BMO's 2023 audited annual consolidated financial statements and accompanying Management Discussion and Analysis (MD&A) are available online at www.bmo.com/investorrelations and at www.sedarplus.ca.
Financial Results Highlights
Fourth Quarter 2023 Compared with Fourth Quarter 2022:
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Net income of $1,617 million, compared with $4,483 million; adjusted net income 1, 3 of $2,150 million, compared with $2,136 million
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Reported earnings per share (EPS) 2 of $2.06, compared with $6.51; adjusted EPS 1, 2, 3 of $2.81, compared with $3.04
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Provision for credit losses (PCL) of $446 million, compared with $226 million
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Return on equity (ROE) of 8.6%, compared with 27.6%; adjusted ROE 1, 3 of 11.7%, compared with 12.9%
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Common Equity Tier 1 (CET1) Ratio 4 of 12.5%, compared with 16.7%
Fiscal 2023 Compared with Fiscal 2022:
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Net income of $4,377 million, compared with $13,537 million; adjusted net income 1, 3 of $8,675 million, compared with $9,039 million
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Reported EPS 2 of $5.68, compared with $19.99; adjusted EPS 1, 2, 3 of $11.73, compared with $13.23
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PCL of $2,178 million, compared with $313 million; adjusted PCL 1, 3 of $1,473 million, compared with $313 million
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ROE of 6.0%, compared with 22.9%; adjusted ROE 1, 3 of 12.3%, compared with 15.2%
Adjusted 1, 3 results in the current quarter and the prior year excluded the following items:
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Acquisition and integration costs of $433 million ($582 million pre-tax) in the current quarter, and $145 million ($193 million pre-tax) in the prior year.
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Amortization of acquisition-related intangible assets of $88 million ($119 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 $12 million ($16 million pre-tax) in the current quarter and $846 million ($1,142 million pre-tax) in the prior year.
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Revenue of $3,336 million ($4,541 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 recovery of $8 million ($6 million pre-tax) in the prior year related to the sale of our EMEA and U.S. Asset Management businesses.
TORONTO, Dec. 1, 2023 /CNW/ - For the fourth quarter ended October 31, 2023, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $1,617 million or $2.06 per share on a reported basis, and net income of $2,150 million or $2.81 per share on an adjusted basis.
"Our results this year reflect the fundamental strength and diversification of our businesses. Driven by record revenue and ongoing momentum in Canadian Personal and Commercial Banking and the contribution of Bank of the West, we delivered strong performance in a challenging economic backdrop," said Darryl White, Chief Executive Officer, BMO Financial Group.
"This year, we made significant progress against our strategic priorities to continue to grow and strengthen our bank, completing three notable acquisitions, advancing our Digital First capabilities and delivering interconnected One Client experiences. With the successful conversion of Bank of the West, BMO is the most integrated north-south bank on the continent. Our relentless focus on putting customers first and supporting their financial goals with innovative digital experiences and expert guidance continues to be recognized, including being ranked first by J.D. Power 5 for Personal Banking Customer Satisfaction among the Big 5 Banks in its 2023 Canada Retail Banking Satisfaction Study.
"Looking to 2024, we have proactively positioned the bank for future growth and are confident that our dynamic expense and capital management actions and ongoing targeted investments will drive consistent and differentiated performance. At BMO we are leveraging our position as a leading financial services provider to put our Purpose into action and help our clients and communities make progress for a thriving economy, sustainable future and an inclusive society," concluded Mr. White.
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BMO's 2023 audited annual consolidated financial statements and accompanying Management Discussion and Analysis (MD&A) are available online at www.bmo.com/investorrelations and at www.sedarplus.ca.
Financial Results Highlights
Fourth Quarter 2023 Compared with Fourth Quarter 2022:
-
Net income of $1,617 million, compared with $4,483 million; adjusted net income 1, 3 of $2,150 million, compared with $2,136 million
-
Reported earnings per share (EPS) 2 of $2.06, compared with $6.51; adjusted EPS 1, 2, 3 of $2.81, compared with $3.04
-
Provision for credit losses (PCL) of $446 million, compared with $226 million
-
Return on equity (ROE) of 8.6%, compared with 27.6%; adjusted ROE 1, 3 of 11.7%, compared with 12.9%
-
Common Equity Tier 1 (CET1) Ratio 4 of 12.5%, compared with 16.7%
Fiscal 2023 Compared with Fiscal 2022:
-
Net income of $4,377 million, compared with $13,537 million; adjusted net income 1, 3 of $8,675 million, compared with $9,039 million
-
Reported EPS 2 of $5.68, compared with $19.99; adjusted EPS 1, 2, 3 of $11.73, compared with $13.23
-
PCL of $2,178 million, compared with $313 million; adjusted PCL 1, 3 of $1,473 million, compared with $313 million
-
ROE of 6.0%, compared with 22.9%; adjusted ROE 1, 3 of 12.3%, compared with 15.2%
Adjusted 1, 3 results in the current quarter and the prior year excluded the following items:
-
Acquisition and integration costs of $433 million ($582 million pre-tax) in the current quarter, and $145 million ($193 million pre-tax) in the prior year.
-
Amortization of acquisition-related intangible assets of $88 million ($119 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 $12 million ($16 million pre-tax) in the current quarter and $846 million ($1,142 million pre-tax) in the prior year.
-
Revenue of $3,336 million ($4,541 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 recovery of $8 million ($6 million pre-tax) in the prior year related to the sale of our EMEA and U.S. Asset Management businesses.
TORONTO, Dec. 1, 2023 /CNW/ - For the fourth quarter ended October 31, 2023, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $1,617 million or $2.06 per share on a reported basis, and net income of $2,150 million or $2.81 per share on an adjusted basis.
"Our results this year reflect the fundamental strength and diversification of our businesses. Driven by record revenue and ongoing momentum in Canadian Personal and Commercial Banking and the contribution of Bank of the West, we delivered strong performance in a challenging economic backdrop," said Darryl White, Chief Executive Officer, BMO Financial Group.
"This year, we made significant progress against our strategic priorities to continue to grow and strengthen our bank, completing three notable acquisitions, advancing our Digital First capabilities and delivering interconnected One Client experiences. With the successful conversion of Bank of the West, BMO is the most integrated north-south bank on the continent. Our relentless focus on putting customers first and supporting their financial goals with innovative digital experiences and expert guidance continues to be recognized, including being ranked first by J.D. Power 5 for Personal Banking Customer Satisfaction among the Big 5 Banks in its 2023 Canada Retail Banking Satisfaction Study.
"Looking to 2024, we have proactively positioned the bank for future growth and are confident that our dynamic expense and capital management actions and ongoing targeted investments will drive consistent and differentiated performance. At BMO we are leveraging our position as a leading financial services provider to put our Purpose into action and help our clients and communities make progress for a thriving economy, sustainable future and an inclusive society," concluded Mr. White.
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