BMO Financial Group Reports Fourth Quarter and Fiscal 2024 Results
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Fourth Quarter 2024 Earnings Release
BMO's 2024 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 2024 compared with Fourth Quarter 2023:
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Net income1 of $2,304 million, compared with $1,710 million; adjusted net income1, 2 of $1,542 million, compared with $2,243 million
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Reported earnings per share (EPS)1, 3 of $2.94, compared with $2.19; adjusted EPS1, 2, 3 of $1.90, compared with $2.93
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Provision for credit losses (PCL) of $1,523 million, compared with $446 million; current quarter included PCL on performing loans of $416 million
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Return on equity (ROE)1 of 11.4%, compared with 9.3%; adjusted ROE1, 2 of 7.4%, compared with 12.4%
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Common Equity Tier 1 (CET1) Ratio4 of 13.6%, compared with 12.5%
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Declared a quarterly dividend of $1.59 per common share, an increase of $0.08 or 5% from the prior year, and $0.04 or 3% from the prior quarter
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Announced our intention to establish a normal course issuer bid (NCIB) for up to 20 million common shares5
Fiscal 2024 compared with Fiscal 2023:
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Net income1 of $7,327 million, compared with $4,437 million; adjusted net income1, 2 of $7,449 million, compared with $8,735 million
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Reported EPS1, 3 of $9.51, compared with $5.76; adjusted EPS1, 2, 3 of $9.68, compared with $11.81
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Reported and adjusted PCL of $3,761 million, compared with $2,178 million on a reported basis and $1,473 million on an adjusted basis1
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ROE1 of 9.7%, compared with 6.2%; adjusted ROE1, 2 of 9.8%, compared with 12.6%
TORONTO, Dec. 5, 2024 /CNW/ - For the fourth quarter ended October 31, 2024, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $2,304 million or $2.94 per share on a reported basis, and net income of $1,542 million or $1.90 per share on an adjusted basis.
"In 2024, BMO delivered good pre-provision pre-tax earnings growth across all operating groups and we met our commitment to positive operating leverage in each of the last three quarters and for the full year. Our overall results were impacted by elevated provisions for credit losses, and we expect quarterly provisions to moderate through 2025 as the business environment improves," said Darryl White, Chief Executive Officer, BMO Financial Group.
"We're entering 2025 with a strong foundation and significant balance sheet capacity for growth. We grew customer deposits across our franchise by $61 billion, up 9% from last year. Our CET1 ratio strengthened meaningfully to 13.6%, creating capacity to support our clients and return excess capital to our shareholders. Our scale, investments in technology, talent and client solutions are driving strong loyalty and core customer growth, and we remain focused on helping customers navigate a complex economic and geopolitical environment. We are confident in the execution of our strategy to drive profitable growth and enhanced return on equity over the medium term."
"At BMO, employee engagement and winning culture are critical enablers to sustained business performance and advancing our Purpose, to Boldly Grow the Good in business and life, and we're proud to have been recognized as one of the Most Admired Corporate Cultures in Canada by Waterstone Human Capital in 2024, a testament to our focus on inclusiveness and empowerment," concluded Mr. White.
Concurrent with the release of results, BMO announced a first quarter 2025 dividend of $1.59 per common share, an increase of $0.08 or 5% from the prior year, and an increase of $0.04 or 3% from the prior quarter. The quarterly dividend of $1.59 per common share is equivalent to an annual dividend of $6.36 per common share.
On December 5, 2024, we announced our intention to establish a NCIB for up to 20 million common shares, subject to the approval of the Office of the Superintendent of Financial Institutions (OSFI) and the Toronto Stock Exchange. Once approvals are obtained, the NCIB will permit us to purchase common shares for the purpose of cancellation. The timing and amount of purchases under the NCIB are subject to regulatory approvals and to management discretion, based on factors such as market conditions and capital levels.
FULL REPORT
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Fourth Quarter 2024 Earnings Release
BMO's 2024 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 2024 compared with Fourth Quarter 2023:
-
Net income1 of $2,304 million, compared with $1,710 million; adjusted net income1, 2 of $1,542 million, compared with $2,243 million
-
Reported earnings per share (EPS)1, 3 of $2.94, compared with $2.19; adjusted EPS1, 2, 3 of $1.90, compared with $2.93
-
Provision for credit losses (PCL) of $1,523 million, compared with $446 million; current quarter included PCL on performing loans of $416 million
-
Return on equity (ROE)1 of 11.4%, compared with 9.3%; adjusted ROE1, 2 of 7.4%, compared with 12.4%
-
Common Equity Tier 1 (CET1) Ratio4 of 13.6%, compared with 12.5%
-
Declared a quarterly dividend of $1.59 per common share, an increase of $0.08 or 5% from the prior year, and $0.04 or 3% from the prior quarter
-
Announced our intention to establish a normal course issuer bid (NCIB) for up to 20 million common shares5
Fiscal 2024 compared with Fiscal 2023:
-
Net income1 of $7,327 million, compared with $4,437 million; adjusted net income1, 2 of $7,449 million, compared with $8,735 million
-
Reported EPS1, 3 of $9.51, compared with $5.76; adjusted EPS1, 2, 3 of $9.68, compared with $11.81
-
Reported and adjusted PCL of $3,761 million, compared with $2,178 million on a reported basis and $1,473 million on an adjusted basis1
-
ROE1 of 9.7%, compared with 6.2%; adjusted ROE1, 2 of 9.8%, compared with 12.6%
TORONTO, Dec. 5, 2024 /CNW/ - For the fourth quarter ended October 31, 2024, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $2,304 million or $2.94 per share on a reported basis, and net income of $1,542 million or $1.90 per share on an adjusted basis.
"In 2024, BMO delivered good pre-provision pre-tax earnings growth across all operating groups and we met our commitment to positive operating leverage in each of the last three quarters and for the full year. Our overall results were impacted by elevated provisions for credit losses, and we expect quarterly provisions to moderate through 2025 as the business environment improves," said Darryl White, Chief Executive Officer, BMO Financial Group.
"We're entering 2025 with a strong foundation and significant balance sheet capacity for growth. We grew customer deposits across our franchise by $61 billion, up 9% from last year. Our CET1 ratio strengthened meaningfully to 13.6%, creating capacity to support our clients and return excess capital to our shareholders. Our scale, investments in technology, talent and client solutions are driving strong loyalty and core customer growth, and we remain focused on helping customers navigate a complex economic and geopolitical environment. We are confident in the execution of our strategy to drive profitable growth and enhanced return on equity over the medium term."
"At BMO, employee engagement and winning culture are critical enablers to sustained business performance and advancing our Purpose, to Boldly Grow the Good in business and life, and we're proud to have been recognized as one of the Most Admired Corporate Cultures in Canada by Waterstone Human Capital in 2024, a testament to our focus on inclusiveness and empowerment," concluded Mr. White.
Concurrent with the release of results, BMO announced a first quarter 2025 dividend of $1.59 per common share, an increase of $0.08 or 5% from the prior year, and an increase of $0.04 or 3% from the prior quarter. The quarterly dividend of $1.59 per common share is equivalent to an annual dividend of $6.36 per common share.
On December 5, 2024, we announced our intention to establish a NCIB for up to 20 million common shares, subject to the approval of the Office of the Superintendent of Financial Institutions (OSFI) and the Toronto Stock Exchange. Once approvals are obtained, the NCIB will permit us to purchase common shares for the purpose of cancellation. The timing and amount of purchases under the NCIB are subject to regulatory approvals and to management discretion, based on factors such as market conditions and capital levels.
FULL REPORT
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