BMO Financial Group Reports Second Quarter 2024 Results
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BMO's Second Quarter 2024 Report to Shareholders, including the unaudited interim consolidated financial statements for the period ended April 30, 2024 are available online at www.bmo.com/investorrelations and at www.sedarplus.ca.
Financial Results Highlights
Second Quarter 2024 compared with Second Quarter 2023:
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Net income of $1,866 million, compared with $1,029 million; adjusted net income1, 2 of $2,033 million, compared with $2,186 million
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Reported earnings per share (EPS)3 of $2.36, compared with $1.26; adjusted EPS1, 2, 3 of $2.59, compared with $2.89
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Provision for credit losses (PCL) of $705 million, compared with $1,023 million on a reported basis and $318 million on an adjusted basis1
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Return on equity (ROE) of 9.9%, compared with 5.5%; adjusted ROE1, 2 of 10.9%, compared with 12.6%
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Common Equity Tier 1 (CET1) Ratio4 of 13.1%, compared with 12.2%
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Declared a quarterly dividend of $1.55 per common share, an increase of $0.08 or 5% from the prior year and $0.04 or 3% from the prior quarter
Year-to-Date 2024 compared with Year-to-Date 2023:
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Net income of $3,158 million, compared with $1,162 million; adjusted net income1,2 of $3,926 million, compared with $4,344 million
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Reported EPS3 of $4.08, compared with $1.42; adjusted EPS1,2,3 of $5.14, compared with $5.94
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PCL of $1,332 million, compared with $1,240 million on a reported basis and $535 million on an adjusted basis1
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ROE of 8.5%, compared with 3.0%; adjusted ROE1,2 of 10.7%, compared with 12.8%
Adjusted1, 2 results in the current quarter and the prior year excluded the following items:
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Impact of an incremental U.S. Federal Deposit Insurance Corporation (FDIC) special assessment of $50 million ($67 million pre-tax) in the current quarter.
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Acquisition and integration costs of $26 million ($36 million pre-tax) in the current quarter; $549 million ($727 million pre-tax) in the prior year.
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Amortization of acquisition-related intangible assets of $79 million ($107 million pre-tax) in the current quarter; $85 million ($115 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 ($15 million pre-tax) in the current quarter; $6 million ($7 million pre-tax) in the prior year.
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Initial provision for credit losses of $517 million ($705 million pre-tax) on the purchased Bank of the West performing loan portfolio in the prior year.
TORONTO, May 29, 2024 /CNW/ - For the second quarter ended April 30, 2024, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $1,866 million or $2.36 per share on a reported basis, and net income of $2,033 million or $2.59 per share on an adjusted basis.
"This quarter, we achieved strong pre-provision, pre-tax earnings growth and positive operating leverage, driven by continued momentum in Canadian personal and commercial banking and strengthening performance in our Capital Markets and wealth businesses. We've delivered on our commitments with expenses down, compared with last year and last quarter. Our balance sheet strength is evident in a CET1 ratio above 13%, robust customer deposit growth and appropriate provisioning for the credit environment, which continues to be impacted by prolonged high interest rates and a slowing economy," said Darryl White, Chief Executive Officer, BMO Financial Group.
"We continue to position the bank for long-term growth. Our U.S. Segment is delivering pre-provision, pre-tax earnings growth and we're executing against a proven U.S. growth strategy, including our One Client approach that brings the full scale of BMO to our customers. We're building on a powerful platform that delivers competitive and differentiated products, advice and digital tools across our North American footprint. This quarter, BMO was ranked among Fast Company's list of the World's Most Innovative Companies of 2024, the only Canadian and U.S. bank recognized out of more than 600 winning organizations – a recognition of the tangible outcomes of our investment in the innovative technologies that make banking easier for our customers," concluded Mr. White.
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BMO's Second Quarter 2024 Report to Shareholders, including the unaudited interim consolidated financial statements for the period ended April 30, 2024 are available online at www.bmo.com/investorrelations and at www.sedarplus.ca.
Financial Results Highlights
Second Quarter 2024 compared with Second Quarter 2023:
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Net income of $1,866 million, compared with $1,029 million; adjusted net income1, 2 of $2,033 million, compared with $2,186 million
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Reported earnings per share (EPS)3 of $2.36, compared with $1.26; adjusted EPS1, 2, 3 of $2.59, compared with $2.89
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Provision for credit losses (PCL) of $705 million, compared with $1,023 million on a reported basis and $318 million on an adjusted basis1
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Return on equity (ROE) of 9.9%, compared with 5.5%; adjusted ROE1, 2 of 10.9%, compared with 12.6%
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Common Equity Tier 1 (CET1) Ratio4 of 13.1%, compared with 12.2%
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Declared a quarterly dividend of $1.55 per common share, an increase of $0.08 or 5% from the prior year and $0.04 or 3% from the prior quarter
Year-to-Date 2024 compared with Year-to-Date 2023:
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Net income of $3,158 million, compared with $1,162 million; adjusted net income1,2 of $3,926 million, compared with $4,344 million
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Reported EPS3 of $4.08, compared with $1.42; adjusted EPS1,2,3 of $5.14, compared with $5.94
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PCL of $1,332 million, compared with $1,240 million on a reported basis and $535 million on an adjusted basis1
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ROE of 8.5%, compared with 3.0%; adjusted ROE1,2 of 10.7%, compared with 12.8%
Adjusted1, 2 results in the current quarter and the prior year excluded the following items:
-
Impact of an incremental U.S. Federal Deposit Insurance Corporation (FDIC) special assessment of $50 million ($67 million pre-tax) in the current quarter.
-
Acquisition and integration costs of $26 million ($36 million pre-tax) in the current quarter; $549 million ($727 million pre-tax) in the prior year.
-
Amortization of acquisition-related intangible assets of $79 million ($107 million pre-tax) in the current quarter; $85 million ($115 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 ($15 million pre-tax) in the current quarter; $6 million ($7 million pre-tax) in the prior year.
-
Initial provision for credit losses of $517 million ($705 million pre-tax) on the purchased Bank of the West performing loan portfolio in the prior year.
TORONTO, May 29, 2024 /CNW/ - For the second quarter ended April 30, 2024, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $1,866 million or $2.36 per share on a reported basis, and net income of $2,033 million or $2.59 per share on an adjusted basis.
"This quarter, we achieved strong pre-provision, pre-tax earnings growth and positive operating leverage, driven by continued momentum in Canadian personal and commercial banking and strengthening performance in our Capital Markets and wealth businesses. We've delivered on our commitments with expenses down, compared with last year and last quarter. Our balance sheet strength is evident in a CET1 ratio above 13%, robust customer deposit growth and appropriate provisioning for the credit environment, which continues to be impacted by prolonged high interest rates and a slowing economy," said Darryl White, Chief Executive Officer, BMO Financial Group.
"We continue to position the bank for long-term growth. Our U.S. Segment is delivering pre-provision, pre-tax earnings growth and we're executing against a proven U.S. growth strategy, including our One Client approach that brings the full scale of BMO to our customers. We're building on a powerful platform that delivers competitive and differentiated products, advice and digital tools across our North American footprint. This quarter, BMO was ranked among Fast Company's list of the World's Most Innovative Companies of 2024, the only Canadian and U.S. bank recognized out of more than 600 winning organizations – a recognition of the tangible outcomes of our investment in the innovative technologies that make banking easier for our customers," concluded Mr. White.
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