BMO Financial Group Reports Fourth Quarter and Fiscal 2024 Results

Financial Results Highlights - BMO Financial Group reported a net income of $2,304 million for Q4 2024, an increase from $1,710 million in Q4 2023, while adjusted net income decreased to $1,542 million from $2,243 million [1] - Reported earnings per share (EPS) rose to $2.94 from $2.19, but adjusted EPS fell to $1.90 from $2.93 [1] - Provision for credit losses (PCL) significantly increased to $1,523 million from $446 million, with $416 million attributed to performing loans [1] - Return on equity (ROE) improved to 11.4% from 9.3%, while adjusted ROE decreased to 7.4% from 12.4% [1] - The Common Equity Tier 1 (CET1) Ratio strengthened to 13.6% from 12.5% [1] Fiscal Year Comparison - For fiscal 2024, net income was $7,327 million, up from $4,437 million in fiscal 2023, while adjusted net income decreased to $7,449 million from $8,735 million [1] - Reported EPS for fiscal 2024 was $9.51, compared to $5.76 in fiscal 2023, while adjusted EPS fell to $9.68 from $11.81 [1] - Total PCL for fiscal 2024 was $3,761 million, compared to $2,178 million in fiscal 2023 [1] - ROE for fiscal 2024 was 9.7%, up from 6.2%, while adjusted ROE was 9.8%, down from 12.6% [1] Business Segment Performance - Canadian P&C reported net income of $750 million, a decrease of 18% from the prior year, despite a 5% increase in revenue [4] - U.S. P&C net income was $256 million, down 57% from the prior year, reflecting a 1% decrease in revenue [5] - Wealth Management reported net income of $326 million, a decrease of 7%, with higher revenue in Wealth and Asset Management but lower income in Insurance [6] - BMO Capital Markets net income was $251 million, a decrease of 47%, primarily due to lower revenue and higher provisions for credit losses [7] - Corporate Services reported net income of $721 million, a significant improvement from a net loss of $626 million in the prior year [8] Capital and Liquidity - BMO's CET1 Ratio was 13.6% as of October 31, 2024, an increase from 13.0% at the end of the previous quarter [9] - The company announced a quarterly dividend of $1.59 per common share, a 5% increase from the prior year [1] - BMO intends to establish a normal course issuer bid (NCIB) for up to 20 million common shares, pending regulatory approvals [1]