BMO Financial Group Reports Third Quarter 2020 Results
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Financial Results Highlights
Third Quarter 2020 Compared With Third Quarter 2019:
- Net income of $1,232 million, compared with $1,557 million; adjusted net income1 of $1,259 million, compared with $1,582 million
- Reported EPS2 of $1.81, compared with $2.34; adjusted EPS1,2 of $1.85, compared with $2.38
- Revenue, net of CCPB3, of $6,000 million, up 4%
- Provision for credit losses (PCL) of $1,054 million, compared with $306 million; current quarter includes PCL on performing loans of $608 million
- ROE of 9.4%, compared with 13.2%; adjusted ROE1 of 9.6%, compared with 13.5%
- Common Equity Tier 1 Ratio of 11.6%
- Dividend of $1.06, unchanged from the prior quarter; up 3% from the prior year
Year-to-Date 2020 Compared With Year-to-Date 2019:
- Net income of $3,513 million, compared with $4,564 million; adjusted net income1 of $3,591 million, compared with $4,642 million
- Reported EPS2 of $5.18, compared with $6.88; adjusted EPS1,2 of $5.30, compared with $7.00
- Revenue, net of CCPB3, of $17,492 million, up 3%
- Provision for credit losses of $2,521 million, compared with $619 million, including year-to-date PCL on performing loans of $1,338 million
- ROE of 9.3%, compared with 13.5%; adjusted ROE1 of 9.5%, compared with 13.7%
TORONTO, Aug. 25, 2020 /CNW/ - For the third quarter ended July 31, 2020, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $1,232 million or $1.81 per share on a reported basis, and net income of $1,259 million or $1.85 per share on an adjusted basis.
"For the third quarter, we delivered very good results in a fluid environment, demonstrating the continued strength and resiliency of our diversified business model. We produced adjusted earnings per share of $1.85, strong pre-provision pre-tax earnings(1) of $2.6 billion, up 12% year-over-year, and provided prudently for loan losses and demonstrated capital strength," said Darryl White, Chief Executive Officer, BMO Financial Group.
"We entered the COVID-19 pandemic with momentum and in a position of strength and we have served our communities with consistent, safe and uninterrupted access to banking services and personalized financial advice. While the pandemic continues to have a serious disruptive impact causing lingering uncertainty and hardship for many, we are committed to standing by our customers and employees as we move into the next phase of the economic recovery.
"This quarter, we continued to deliver on our commitment to expense management, a critical and appropriate lever in the current environment. Expenses declined 2% from the prior quarter and year-over-year. Operating leverage for the quarter was 5.3% and year-to-date operating leverage was strong at 2.9%.
"We are moving forward with a strong foundation and good operating momentum, and are well positioned to withstand both economic headwinds and recovery. We will continue to provide unwavering support to our customers while delivering increased shareholder value through efficiency, discipline and a strong focus on our strategic goals," concluded Mr. White.
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Financial Results Highlights
Third Quarter 2020 Compared With Third Quarter 2019:
- Net income of $1,232 million, compared with $1,557 million; adjusted net income1 of $1,259 million, compared with $1,582 million
- Reported EPS2 of $1.81, compared with $2.34; adjusted EPS1,2 of $1.85, compared with $2.38
- Revenue, net of CCPB3, of $6,000 million, up 4%
- Provision for credit losses (PCL) of $1,054 million, compared with $306 million; current quarter includes PCL on performing loans of $608 million
- ROE of 9.4%, compared with 13.2%; adjusted ROE1 of 9.6%, compared with 13.5%
- Common Equity Tier 1 Ratio of 11.6%
- Dividend of $1.06, unchanged from the prior quarter; up 3% from the prior year
Year-to-Date 2020 Compared With Year-to-Date 2019:
- Net income of $3,513 million, compared with $4,564 million; adjusted net income1 of $3,591 million, compared with $4,642 million
- Reported EPS2 of $5.18, compared with $6.88; adjusted EPS1,2 of $5.30, compared with $7.00
- Revenue, net of CCPB3, of $17,492 million, up 3%
- Provision for credit losses of $2,521 million, compared with $619 million, including year-to-date PCL on performing loans of $1,338 million
- ROE of 9.3%, compared with 13.5%; adjusted ROE1 of 9.5%, compared with 13.7%
TORONTO, Aug. 25, 2020 /CNW/ - For the third quarter ended July 31, 2020, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $1,232 million or $1.81 per share on a reported basis, and net income of $1,259 million or $1.85 per share on an adjusted basis.
"For the third quarter, we delivered very good results in a fluid environment, demonstrating the continued strength and resiliency of our diversified business model. We produced adjusted earnings per share of $1.85, strong pre-provision pre-tax earnings(1) of $2.6 billion, up 12% year-over-year, and provided prudently for loan losses and demonstrated capital strength," said Darryl White, Chief Executive Officer, BMO Financial Group.
"We entered the COVID-19 pandemic with momentum and in a position of strength and we have served our communities with consistent, safe and uninterrupted access to banking services and personalized financial advice. While the pandemic continues to have a serious disruptive impact causing lingering uncertainty and hardship for many, we are committed to standing by our customers and employees as we move into the next phase of the economic recovery.
"This quarter, we continued to deliver on our commitment to expense management, a critical and appropriate lever in the current environment. Expenses declined 2% from the prior quarter and year-over-year. Operating leverage for the quarter was 5.3% and year-to-date operating leverage was strong at 2.9%.
"We are moving forward with a strong foundation and good operating momentum, and are well positioned to withstand both economic headwinds and recovery. We will continue to provide unwavering support to our customers while delivering increased shareholder value through efficiency, discipline and a strong focus on our strategic goals," concluded Mr. White.
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