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BMO Financial Group (BMO) Reports Q1 EPS of Cdn$2.41

February 25, 2020 6:01 AM EST

BMO Financial Group (NYSE: BMO) reported Q1 EPS of Cdn$2.41, versus Cdn$2.43 reported last year. Revenue for the quarter came in at Cdn$6.75 billion, versus Cdn$6.09 billion reported last year.

First Quarter 2020 Compared With First Quarter 2019:

  • Net income of $1,592 million and adjusted net income1 of $1,617 million, both up 5%
  • Reported EPS2 of $2.37 and adjusted EPS1 of $2.41, both up 4%
  • Revenue, net of CCPB3, of $6,031 million, up 8%
  • Provision for credit losses (PCL) of $349 million; includes PCL on performing loans of $25 million
  • ROE of 13.3%, compared with 13.6%; adjusted ROE1 of 13.5%, compared with 13.9%
  • Common Equity Tier 1 Ratio of 11.4%

"We had a strong quarter, delivering adjusted earnings per share of $2.41, with 8% year-over-year revenue growth, 16% pre-provision, pre-tax earnings growth and 5% net income growth. All our businesses performed well, each delivering operating leverage over 2% with total bank operating leverage of 4.6% driving a 270 basis point improvement in efficiency. Canadian P&C had another good quarter, with net income growth of 8% and continued robust loan and deposit growth in both personal and commercial. Capital Markets had a strong quarter in all businesses, demonstrating its earnings potential, with an increased contribution from our U.S. segment resulting in 38% total net income growth. Wealth Management and U.S. P&C also performed well, delivering positive operating leverage with both revenue growth and disciplined expense management. Overall portfolio credit quality remains stable, even as credit provisions this quarter were elevated, largely as a result of activity in two specific sectors," said Darryl White, Chief Executive Officer, BMO Financial Group.

"We have significant momentum, with businesses increasing market share. Our segments are winning on the strength of our customer value proposition and our ability to compete effectively. Our commitment to growing our business, improving efficiency and building a stronger BMO for our customers, employees and communities will continue to drive our focus on delivering consistently strong relative performance and long-term shareholder value," concluded Mr. White.

For earnings history and earnings-related data on BMO Financial Group (BMO) click here.



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