| (Unaudited) (Canadian $ in millions, except as noted) |
For the three months ended |
For the six months ended |
||||||||||||||||||
April 30, 2024 |
January 31, 2024 |
April 30, 2023 |
April 30, 2024 |
April 30, 2023 |
||||||||||||||||
| Interest, Dividend and Fee Income |
||||||||||||||||||||
| Loans |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
| Securities (Note 2) |
||||||||||||||||||||
| Securities borrowed or purchased under resale agreements |
||||||||||||||||||||
| Deposits with banks |
||||||||||||||||||||
| Interest Expense |
||||||||||||||||||||
| Deposits |
||||||||||||||||||||
| Securities sold but not yet purchased and securities lent or sold under repurchase agreements |
||||||||||||||||||||
| Subordinated debt |
||||||||||||||||||||
| Other liabilities |
||||||||||||||||||||
| Net Interest Income |
||||||||||||||||||||
| Non-Interest Revenue |
||||||||||||||||||||
| Securities commissions and fees |
||||||||||||||||||||
| Deposit and payment service charges |
||||||||||||||||||||
| Trading revenues (losses) |
( |
) | ||||||||||||||||||
| Lending fees |
||||||||||||||||||||
| Card fees |
||||||||||||||||||||
| Investment management and custodial fees |
||||||||||||||||||||
| Mutual fund revenues |
||||||||||||||||||||
| Underwriting and advisory fees |
||||||||||||||||||||
| Securities gains, other than trading (Note 2) |
||||||||||||||||||||
| Foreign exchange gains, other than trading |
||||||||||||||||||||
| Insurance service results (Note 1) |
||||||||||||||||||||
| Insurance investment results (Note 1) |
( |
) | ( |
) | ( |
) | ||||||||||||||
| Share of profit in associates and joint ventures |
||||||||||||||||||||
| Other revenues (losses) |
( |
) | ( |
) |
||||||||||||||||
| Total Revenue |
||||||||||||||||||||
| Provision for Credit Losses |
||||||||||||||||||||
| Non-Interest Expense |
||||||||||||||||||||
| Employee compensation |
||||||||||||||||||||
| Premises and equipment |
||||||||||||||||||||
| Amortization of intangible assets |
||||||||||||||||||||
| Advertising and business development |
||||||||||||||||||||
| Communications |
||||||||||||||||||||
| Professional fees |
||||||||||||||||||||
| Other |
||||||||||||||||||||
| Income Before Provision for Income Taxes |
||||||||||||||||||||
| Provision for income taxes (Note 10) |
||||||||||||||||||||
| Net Income |
$ |
$ | $ | $ |
$ | |||||||||||||||
| Attributable to: |
||||||||||||||||||||
| Bank shareholders |
$ |
$ | $ | $ |
$ | |||||||||||||||
| Non-controlling interest in subsidiaries |
||||||||||||||||||||
| Net Income |
$ |
$ | $ | $ |
$ | |||||||||||||||
| Earnings Per Common Share (Canadian $) |
||||||||||||||||||||
| Basic |
$ |
$ | $ | $ |
$ | |||||||||||||||
| Diluted |
||||||||||||||||||||
| Dividends per common share |
||||||||||||||||||||
50 |
(Unaudited) (Canadian $ in millions) |
For the three months ended |
For the six months ended |
||||||||||||||||||
April 30, 2024 |
January 31, 2024 |
April 30, 2023 |
April 30, 2024 |
April 30, 2023 |
||||||||||||||||
Net Income |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Other Comprehensive Income, net of taxes |
||||||||||||||||||||
Items that may subsequently be reclassified to net income |
||||||||||||||||||||
Net change in unrealized gains on fair value through OCI debt securities |
||||||||||||||||||||
Unrealized gains on fair value through OCI debt securities arising during the period (1) |
||||||||||||||||||||
Reclassification to earnings of (gains) during the period (2) |
( |
) |
( |
) | ( |
) | ( |
) |
( |
) | ||||||||||
Net change in unrealized gains (losses) on cash flow hedges |
||||||||||||||||||||
Gains (losses) on derivatives designated as cash flow hedges arising during the period (3) |
( |
) |
( |
) | ||||||||||||||||
Reclassification to earnings/goodwill of losses on derivatives designated as cash flow hedges during the period (4) |
||||||||||||||||||||
( |
) |
( |
) | |||||||||||||||||
Net gains (losses) on translation of net foreign operations |
||||||||||||||||||||
Unrealized gains (losses) on translation of net foreign operations |
( |
) | ( |
) |
||||||||||||||||
Unrealized gains (losses) on hedges of net foreign operations (5) |
( |
) |
( |
) | ( |
) | ||||||||||||||
| ( |
) | ( |
) |
( |
) | |||||||||||||||
Items that will not be reclassified to net income |
||||||||||||||||||||
Net unrealized gains on fair value through OCI equity securities arising during the period (6) |
||||||||||||||||||||
Net gains (losses) on remeasurement of pension and other employee future benefit plans (7) |
( |
) | ( |
) |
( |
) | ||||||||||||||
Net gains (losses) on remeasurement of own credit risk on financial liabilities designated at fair value (8) |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||||||
( |
) |
( |
) | ( |
) |
( |
) | |||||||||||||
Other Comprehensive Income (Loss), net of taxes |
( |
) |
||||||||||||||||||
Total Comprehensive Income |
$ |
$ | $ | $ |
$ | |||||||||||||||
Attributable to: |
||||||||||||||||||||
Bank shareholders |
$ |
$ | $ | $ |
$ | |||||||||||||||
Non-controlling interest in subsidiaries |
||||||||||||||||||||
Total Comprehensive Income |
$ |
$ | $ | $ |
$ | |||||||||||||||
| (1) | Net of income tax (provision) of $( |
| (2) | Net of income tax provision of $ |
| (3) | Net of income tax (provision) recovery of $ |
| (4) | Net of income tax provision (recovery) of $( |
| (5) | Net of income tax (provision) recovery of $ |
| (6) | Net of income tax (provision) recovery of $ |
| (7) | Net of income tax (provision) recovery of $( |
| (8) | Net of income tax (provision) recovery of $ |
| BMO Financial Group Second Quarter Report 2024 51 |
| (Unaudited) (Canadian $ in millions) |
As at |
|||||||
April 30, 2024 |
October 31, 2023 |
|||||||
| Assets |
||||||||
| Cash and Cash Equivalents |
$ |
$ | ||||||
| Interest Bearing Deposits with Banks |
||||||||
| Securities |
||||||||
| Trading |
||||||||
| Fair value through profit or loss |
||||||||
| Fair value through other comprehensive income |
||||||||
| Debt securities at amortized cost |
||||||||
| Investments in associates and joint ventures |
||||||||
| Securities Borrowed or Purchased Under Resale Agreements |
||||||||
| Loans |
||||||||
| Residential mortgages |
||||||||
| Consumer instalment and other personal |
||||||||
| Credit cards |
||||||||
| Business and government |
||||||||
| Allowance for credit losses (Note 3) |
( |
) |
( |
) | ||||
| Other Assets |
||||||||
| Derivative instruments |
||||||||
| Customers’ liability under acceptances |
||||||||
| Premises and equipment |
||||||||
| Goodwill |
||||||||
| Intangible assets |
||||||||
| Current tax assets |
||||||||
| Deferred tax assets |
||||||||
| Receivable from brokers, dealers and clients |
||||||||
| Other |
||||||||
| Total Assets |
$ |
$ | ||||||
| Liabilities and Equity |
||||||||
| Deposits |
$ |
$ | ||||||
| Other Liabilities |
||||||||
| Derivative instruments |
||||||||
| Acceptances |
||||||||
| Securities sold but not yet purchased |
||||||||
| Securities lent or sold under repurchase agreements |
||||||||
| Securitization and structured entities’ liabilities |
||||||||
| Payable to brokers, dealers and clients |
||||||||
| Other |
||||||||
| Subordinated Debt |
||||||||
| Total Liabilities |
||||||||
| Equity |
||||||||
| Preferred shares and other equity instruments (Note 5) |
||||||||
| Common shares (Note 5) |
||||||||
| Contributed surplus |
||||||||
| Retained earnings |
||||||||
| Accumulated other comprehensive income |
||||||||
| Total shareholders’ equity |
||||||||
| Non-controlling interest in subsidiaries (Note 5) |
||||||||
| Total Equity |
||||||||
| Total Liabilities and Equity |
$ |
$ | ||||||
52 |
| (Unaudited) (Canadian $ in millions) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2024 |
April 30, 2023 |
April 30, 2024 |
April 30, 2023 |
|||||||||||||
| Preferred Shares and Oth er Equity In struments |
||||||||||||||||
| Balance at beginning of period |
$ |
$ |
$ |
$ |
||||||||||||
| Issued during the period |
- | |||||||||||||||
| Balance at End of Period |
||||||||||||||||
| Common Shares |
||||||||||||||||
| Balance at beginning of period |
||||||||||||||||
| Issued under the Shareholder Dividend Reinvestment and Share Purchase Plan |
||||||||||||||||
| Issued under the Stock Option Plan |
||||||||||||||||
| Treasury shares sold (purchased) |
( |
) | ||||||||||||||
| Issued to align capital position with increased regulatory requirements as announced by OSFI |
- | |||||||||||||||
| Issued for acquisitions |
- | |||||||||||||||
| Balance at End of Period |
||||||||||||||||
| Contributed Surplus |
||||||||||||||||
| Balance at beginning of period |
||||||||||||||||
| Stock option expense, net of options exercised |
( |
) |
( |
) | ||||||||||||
| Net premium (discount) on sale of treasury shares |
( |
) | ( |
) | ||||||||||||
| Other |
- | |||||||||||||||
| Balance at End of Period |
||||||||||||||||
| Retained Earnings |
||||||||||||||||
| Balance at beginning of period |
|
|
||||||||||||||
| Impact from accounting policy changes (Note 1) |
- | ( |
) | |||||||||||||
| Net income attributable to bank shareholders |
||||||||||||||||
| Dividends on preferred shares and distributions payable on other equity instruments |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Dividends on common shares |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Equity issue expense and premium paid on redemption of preferred shares |
( |
) |
- | ( |
) |
( |
) | |||||||||
| Net discount on sale of treasury shares |
( |
) | ( |
) | ||||||||||||
| Balance at End of Period |
||||||||||||||||
| Accumulated Other Comprehensive (Loss) on Fair Value through OCI Securities, net of taxes |
||||||||||||||||
| Balance at beginning of period |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Unrealized gains on fair value through OCI debt securities arising during the period |
||||||||||||||||
| Unrealized gains on fair value through OCI equity securities arising during the period |
- | - | ||||||||||||||
| Reclassification to earnings of (gains) during the period |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Balance at End of Period |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Accumulated Other Comprehensive (Loss) on Cash Flow Hedges, net of taxes |
||||||||||||||||
| Balance at beginning of period |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Gains (losses) on derivatives designated as cash flow hedges arising during the period |
( |
) |
( |
) | ||||||||||||
| Reclassification to earnings/goodwill of losses on derivatives designated as cash flow hedges during the period |
||||||||||||||||
| Balance at End of Period |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Accumulated Other Comprehensive Income on Translation of Net Foreign Operations, net of taxes |
||||||||||||||||
| Balance at beginning of period |
||||||||||||||||
| Unrealized gains (losses) on translation of net foreign operations |
( |
) |
||||||||||||||
| Unrealized gains (losses) on hedges of net foreign operations |
( |
) |
( |
) | ( |
) | ||||||||||
| Balance at End of Period |
||||||||||||||||
| Accumulated Other Comprehensive Income on Pension and Other Employee Future Benefit Plans, net of taxes |
||||||||||||||||
| Balance at beginning of period |
||||||||||||||||
| Gains (losses) on remeasurement of pension and other employee future benefit plans |
( |
) |
( |
) | ||||||||||||
| Balance at End of Period |
||||||||||||||||
| Accumulated Other Comprehensive Income (Loss) on Own Credit Risk on Financial Liabilities Designated at Fair Value, net of taxes |
||||||||||||||||
| Balance at beginning of period |
||||||||||||||||
| Gains (losses) on remeasurement of own credit risk on financial liabilities designated at fair value |
( |
) |
( |
) |
( |
) | ||||||||||
| Balance at End of Period |
( |
) |
( |
) |
||||||||||||
| Total Accumulated Other Comprehensive Income |
||||||||||||||||
| Total Shareholders’ Equity |
||||||||||||||||
| Non-Controlling Interest in Subsidiaries |
||||||||||||||||
| Balance at beginning of period |
- | - | ||||||||||||||
| Acquisition |
||||||||||||||||
| Net income attributable to non-controlling interest in subsidiaries |
||||||||||||||||
| Dividends to non-controlling interest in subsidiaries |
( |
) |
- | ( |
) |
- | ||||||||||
| Other |
- | - | ||||||||||||||
| Balance at End of Period |
||||||||||||||||
| Total Equity |
$ |
$ | $ |
$ | ||||||||||||
| BMO Financial Group Second Quarter Report 2024 53 |
| (Unaudited) (Canadian $ in millions, except as noted) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2024 |
April 30, 2023 |
April 30, 2024 |
April 30, 2023 |
|||||||||||||
| Cash Flows from Operating Activities |
||||||||||||||||
| Net Income |
$ |
$ |
$ |
$ |
||||||||||||
| Adjustments to determine net cash flows provided by operating activities: |
||||||||||||||||
| Securities (gains), other than trading (Note 2) |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Depreciation of premises and equipment |
||||||||||||||||
| Depreciation of other assets |
||||||||||||||||
| Amortization of intangible assets |
||||||||||||||||
| Provision for credit losses (Note 3) |
||||||||||||||||
| Deferred taxes |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Changes in operating assets and liabilities: |
||||||||||||||||
| Trading securities |
( |
) |
( |
) |
( |
) | ||||||||||
| Derivative assets |
( |
) |
||||||||||||||
| Derivative liabilities |
( |
) | ( |
) |
( |
) | ||||||||||
| Current income taxes |
( |
) |
( |
) | ( |
) | ||||||||||
| Accrued interest receivable and payable |
||||||||||||||||
| Brokers, dealers and clients receivable and payable |
( |
) | ( |
) | ||||||||||||
| Other items and accruals, net |
( |
) |
||||||||||||||
| Deposits |
( |
) | ||||||||||||||
| Loans |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Securities sold but not yet purchased |
( |
) |
( |
) |
||||||||||||
| Securities lent or sold under repurchase agreements |
( |
) | ( |
) | ||||||||||||
| Securities borrowed or purchased under resale agreements |
( |
) |
( |
) |
( |
) | ||||||||||
| Securitization and structured entities’ liabilities |
( |
) | ( |
) | ||||||||||||
| Net Cash Provided by (Used in) Operating Activities |
( |
) | ( |
) | ||||||||||||
| Cash Flows from Financing Activities |
||||||||||||||||
| Net increase (decrease) in liabilities of subsidiaries |
( |
) |
( |
) |
||||||||||||
| Proceeds from issuance of covered bonds |
||||||||||||||||
| Redemption/buyback of covered bonds |
( |
) | ( |
) |
( |
) | ||||||||||
| Proceeds from issuance of preferred shares, net of issuance costs (Note 5) |
||||||||||||||||
| Net proceeds from issuance of common shares (Note 5) |
||||||||||||||||
| Net proceeds from the sale (purchase) of treasury shares |
( |
) | ||||||||||||||
| Cash dividends and distributions paid |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Cash dividends paid to non-controlling interest |
( |
) |
( |
) |
||||||||||||
| Repayment of lease liabilities |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Net Cash Provided by (Used in) Financing Activities |
( |
) |
( |
) |
||||||||||||
| Cash Flows from Investing Activities |
||||||||||||||||
| Net (increase) decrease in interest bearing deposits with banks |
( |
) |
( |
) | ( |
) |
||||||||||
| Purchases of securities, other than trading |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Maturities of securities, other than trading |
||||||||||||||||
| Proceeds from sales of securities, other than trading |
||||||||||||||||
| Premises and equipment - net (purchases) |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Purchased and developed software – net (purchases) |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Acquisitions (1) |
( |
) | ( |
) | ||||||||||||
| Net Cash Provided by (Used in) Investing Activities |
( |
) | ( |
) |
( |
) | ||||||||||
| Effect of Exchange Rate Changes on Cash and Cash Equivalents |
( |
) |
||||||||||||||
| Net increase (decrease) in Cash and Cash Equivalents |
( |
) | ( |
) | ||||||||||||
| Cash and Cash Equivalents at Beginning of Period |
||||||||||||||||
| Cash and Cash Equivalents at End of Period |
$ |
$ | $ |
$ | ||||||||||||
| Supplemental Disclosure of Cash Flow Information |
||||||||||||||||
| Net cash provided by operating activities includes: |
||||||||||||||||
| Interest paid in the period (2) |
$ |
$ | $ |
$ | ||||||||||||
| Income taxes paid in the period |
||||||||||||||||
| Interest received in the period |
||||||||||||||||
| Dividends received in the period |
||||||||||||||||
| (1) | This amount is net of $ |
| (2) | Includes dividends paid on securities sold but not yet purchased. |
54 |
| BMO Financial Group Second Quarter Report 2024 55 |
56 |
| (Canadian $ in millions) |
November 1, 2022 previously reported |
IFRS 17 impacts |
IAS 40 accounting policy change impacts |
November 1, 2022 restated |
||||||||||||
| Assets |
||||||||||||||||
| Other Assets |
||||||||||||||||
| Deferred tax assets |
$ |
$ |
$ |
( |
) | $ |
||||||||||
| Other |
||||||||||||||||
| Insurance-related assets |
||||||||||||||||
| Total Assets |
$ | $ | $ | |
$ | |||||||||||
| Liabilities |
||||||||||||||||
| Other Liabilities |
||||||||||||||||
| Deferred tax liabilities |
$ | $ | - | $ | - | $ |
||||||||||
| Other |
||||||||||||||||
| Insurance-related liabilities |
|
|
- | |
||||||||||||
| Total Liabilities |
$ |
$ |
$ | - | $ |
|||||||||||
| (Canadian $ in millions) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2024 |
April 30, 2023 |
April 30, 2024 |
April 30, 2023 |
|||||||||||||
| Insurance revenue |
$ |
$ | $ |
$ | ||||||||||||
| Insurance service expenses |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Net expenses from reinsurance contracts |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Insurance service results |
$ |
$ | |
$ |
$ | |
||||||||||
| (Canadian $ in millions) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2024 |
April 30, 2023 |
April 30, 2024 |
April 30, 2023 |
|||||||||||||
| Investment return |
$ |
( |
) |
$ | |
$ |
$ | |||||||||
| Insurance finance income (expense) from insurance and reinsurance contracts held |
( |
) | ( |
) |
( |
) | ||||||||||
| Movement in investment contract liabilities |
( |
) | ( |
) |
( |
) | ||||||||||
| Insurance investment results |
$ |
$ | ( |
) | $ |
$ | ( |
) | ||||||||
| Portfolio duration: |
April 30, 2024 |
October 31, 2023 |
||||||
| 1 year |
||||||||
| 3 years |
||||||||
| 5 years |
||||||||
| 10 years |
||||||||
| 20 years |
||||||||
| 30 years |
||||||||
| Ultimate |
||||||||
| BMO Financial Group Second Quarter Report 2024 57 |
| (Canadian $ in millions) |
For the six months ended April 30, 2024 |
For the twelve months ended October 31, 2023 |
||||||||||||||||||||||
Liabilities for remaining coverage |
Liabilities for incurred claims |
Total |
Liabilities for remaining coverage |
Liabilities for incurred claims |
Total |
|||||||||||||||||||
| Beginning of Period: |
||||||||||||||||||||||||
| Insurance contract liabilities |
$ |
$ |
$ |
$ | $ | $ | ||||||||||||||||||
| Insurance service results |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||||||
| Net finance expenses from insurance contracts |
||||||||||||||||||||||||
| Total cash flows |
( |
) |
( |
) | ||||||||||||||||||||
| Other changes in the net carrying amount of the insurance contract |
( |
) |
( |
) |
||||||||||||||||||||
| End of Period: |
||||||||||||||||||||||||
| Insurance contract liabilities (1) |
$ |
$ |
$ |
$ | |
$ | $ | |
||||||||||||||||
| (1) | The liabilities for incurred claims relating to insurance contracts in our creditor and reinsurance business were $ Octobe r 31, 2023. |
58 |
(Canadian $ in millions) |
April 30, 2024 |
October 31, 2023 | ||||||
Trading securities (1) |
$ |
$ | ||||||
Fair value through profit or loss securities (FVTPL) |
||||||||
FVTPL securities mandatorily measured at fair value |
||||||||
FVTPL investment securities held by Insurance subsidiaries designated at fair value |
||||||||
Total FVTPL securities |
||||||||
Fair value through other comprehensive income (FVOCI) securities (2) |
||||||||
Amortized cost securities (3) |
|
|||||||
Investments in associates and joint ventures |
||||||||
Total |
$ |
$ | ||||||
| (1) | Trading securities include interests of $ |
| (2) | Amounts are net of ACL of $ |
| (3) | Amounts are net of ACL of $ |
(Canadian $ in millions) |
April 30, 2024 |
October 31, 2023 | ||||||||||||||
Carrying value |
Fair value |
Carrying value | Fair value | |||||||||||||
Issued or guaranteed by: |
||||||||||||||||
Canadian federal government |
$ |
$ |
$ | $ | ||||||||||||
Canadian provincial and municipal governments |
||||||||||||||||
U.S. federal government |
||||||||||||||||
U.S. states, municipalities and agencies |
||||||||||||||||
Other governments |
||||||||||||||||
NHA MBS, U.S. agency MBS and CMO (1) |
|
|
||||||||||||||
Corporate debt |
||||||||||||||||
Total |
$ |
$ |
$ | $ | ||||||||||||
| (1) | These amounts are either supported by insured mortgages or issued by U.S. agencies and government-sponsored enterprises. NHA refers to the National Housing Act. |
(Canadian $ in millions) |
April 30, 2024 |
October 31, 2023 | ||||||||||||||||||||||||||||||
Cost or amortized cost |
Gross unrealized gains |
Gross unrealized losses |
Fair value |
Cost or amortized cost |
Gross unrealized gains |
Gross unrealized losses |
Fair value | |||||||||||||||||||||||||
Issued or guaranteed by: |
||||||||||||||||||||||||||||||||
Canadian federal government |
$ |
$ |
$ |
( |
) |
$ |
$ | $ | $ | ( |
) | $ | ||||||||||||||||||||
Canadian provincial and municipal governments |
( |
) |
( |
) | ||||||||||||||||||||||||||||
U.S. federal government |
( |
) |
( |
) | ||||||||||||||||||||||||||||
U.S. states, municipalities and agencies |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Other governments |
( |
) |
( |
) | ||||||||||||||||||||||||||||
NHA MBS, U.S. agency MBS and CMO |
( |
) |
|
( |
) | |
||||||||||||||||||||||||||
Corporate debt |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Corporate equity |
|
- | ||||||||||||||||||||||||||||||
Total |
$ |
$ |
$ |
( |
) |
$ |
$ | $ | $ | ( |
) | $ | ||||||||||||||||||||
(Canadian $ in millions) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2024 |
April 30, 2023 |
April 30, 2024 |
April 30, 2023 |
|||||||||||||
FVOCI securities |
$ |
$ |
$ |
$ |
||||||||||||
Amortized cost securities |
||||||||||||||||
Total |
$ |
$ | |
$ |
$ | |
||||||||||
| BMO Financial Group Second Quarter Report 2024 59 |
(Canadian $ in millions) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2024 |
April 30, 2023 |
April 30, 2024 |
April 30, 2023 |
|||||||||||||
FVTPL securities |
$ |
$ |
$ |
$ |
||||||||||||
FVOCI securities - net realized gains (1) |
||||||||||||||||
Impairment (loss) recovery |
( |
) | ( |
) |
( |
) | ||||||||||
Securities gains, other than trading |
$ |
$ | |
$ |
$ | |
||||||||||
| (1) | Gains are net of (losses) on hedge contracts. |
• |
Interest and dividend income of $ |
• |
Gains (losses) from securities designated as FVTPL of $( |
• |
Realized gains from FVOCI securities of $ |
60 |
| (Canadian $ in millions) |
April 30, 2024 |
October 31, 2023 |
||||||||||||||||||||||||||||||
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Stage 1 |
Stage 2 |
Stage 3 (1) |
Total |
|||||||||||||||||||||||||
| Loans: Residential mortgages |
||||||||||||||||||||||||||||||||
| Exceptionally low |
$ |
$ |
- |
$ |
- |
$ |
$ |
$ |
- | $ |
- | $ | ||||||||||||||||||||
| Very low |
- |
- | ||||||||||||||||||||||||||||||
| Low |
- |
- | ||||||||||||||||||||||||||||||
| Medium |
- |
- | ||||||||||||||||||||||||||||||
| High |
- |
- | ||||||||||||||||||||||||||||||
| Not rated (2) |
- |
- | ||||||||||||||||||||||||||||||
| Impaired |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Gross residential mortgages |
|
|||||||||||||||||||||||||||||||
| ACL |
||||||||||||||||||||||||||||||||
| Carrying amount |
||||||||||||||||||||||||||||||||
| Loans: Consumer instalment and other personal |
||||||||||||||||||||||||||||||||
| Exceptionally low |
- |
- | ||||||||||||||||||||||||||||||
| Very low |
- |
- | ||||||||||||||||||||||||||||||
| Low |
- |
- | ||||||||||||||||||||||||||||||
| Medium |
- |
- | ||||||||||||||||||||||||||||||
| High |
- |
- | ||||||||||||||||||||||||||||||
| Not rated (2) |
- |
- | ||||||||||||||||||||||||||||||
| Impaired |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Gross consumer instalment and other personal |
||||||||||||||||||||||||||||||||
| ACL |
||||||||||||||||||||||||||||||||
| Carrying amount |
||||||||||||||||||||||||||||||||
| Loans: Credit cards |
||||||||||||||||||||||||||||||||
| Exceptionally low |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Very low |
- |
- | ||||||||||||||||||||||||||||||
| Low |
- |
- | ||||||||||||||||||||||||||||||
| Medium |
- |
- | ||||||||||||||||||||||||||||||
| High |
- |
- | ||||||||||||||||||||||||||||||
| Not rated (2) |
- |
- | ||||||||||||||||||||||||||||||
| Impaired |
- |
- |
- |
- |
- | - | - | - | ||||||||||||||||||||||||
| Gross credit cards |
- |
- | ||||||||||||||||||||||||||||||
| ACL |
- |
- | ||||||||||||||||||||||||||||||
| Carrying amount |
- |
- | ||||||||||||||||||||||||||||||
| Loans: Business and government |
||||||||||||||||||||||||||||||||
| Acceptable |
||||||||||||||||||||||||||||||||
| Investment grade |
- |
- | |
|||||||||||||||||||||||||||||
| Sub-investment grade |
- |
- | ||||||||||||||||||||||||||||||
| Watchlist |
- |
|
- | |||||||||||||||||||||||||||||
| Impaired |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Gross business and government |
|
|||||||||||||||||||||||||||||||
| ACL |
||||||||||||||||||||||||||||||||
| Carrying amount |
||||||||||||||||||||||||||||||||
| Total gross loans and acceptances |
||||||||||||||||||||||||||||||||
| Total net loans and acceptances |
||||||||||||||||||||||||||||||||
| Commitments and financial guarantee contracts |
||||||||||||||||||||||||||||||||
| Acceptable |
||||||||||||||||||||||||||||||||
| Investment grade |
- |
- | ||||||||||||||||||||||||||||||
| Sub-investment grade |
- |
- | ||||||||||||||||||||||||||||||
| Watchlist |
- |
- |
- | |||||||||||||||||||||||||||||
| Impaired |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Gross commitments and financial guarantee contracts |
||||||||||||||||||||||||||||||||
| ACL |
||||||||||||||||||||||||||||||||
| Carrying amount (5) (6) |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
| (1) | Includes purchased credit impaired (PCI) loan balances. |
| (2) | Includes purchased portfolios and certain cases where an internal risk rating is not assigned. Alternative credit risk assessments, rating methodologies, policies and tools are used to manage credit risk for these portfolios. |
| (3) | Credit card loans are immediately written off when principal or interest payments are |
| (4) | Includes customers’ liability under acceptances. |
| (5) | Represents total contractual amounts of undrawn credit facilities and other off-balance sheet exposures, excluding personal lines of credit and credit cards that are unconditionally cancellable at our discretion. |
| (6) | Certain commercial borrower commitments are conditional and may include recourse to counterparties. |
| BMO Financial Group Second Quarter Report 2024 61 |
| (Canadian $ in millions) |
||||||||||||||||||||||||||||||||
| For the three months ended |
April 30, 2024 |
April 30, 2023 |
||||||||||||||||||||||||||||||
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
|||||||||||||||||||||||||
| Loans: Residential mortgages |
||||||||||||||||||||||||||||||||
| Balance as at beginning of period |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
| Transfer to Stage 1 |
( |
) |
( |
) |
- |
( |
) | - | - | |||||||||||||||||||||||
| Transfer to Stage 2 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
| Transfer to Stage 3 |
- |
( |
) |
- |
( |
) | ( |
) | - | |||||||||||||||||||||||
| Net remeasurement of loss allowance |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
| Loan originations |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Loan purchases |
- |
- |
- |
- |
- | - | ||||||||||||||||||||||||||
| Derecognitions and maturities |
( |
) |
( |
) |
- |
( |
) |
( |
) | ( |
) | - | ( |
) | ||||||||||||||||||
| Model changes |
- |
- |
- |
- |
- | |||||||||||||||||||||||||||
| Total PCL (2) |
( |
) |
- | |||||||||||||||||||||||||||||
| Write-offs (3) |
- |
- |
( |
) |
( |
) |
- | - | ( |
) | ( |
) | ||||||||||||||||||||
| Recoveries of previous write-offs |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Foreign exchange and other |
- |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | |||||||||||||||||||||
| Balance as at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
| Loans: Consumer instalment and other personal |
||||||||||||||||||||||||||||||||
| Balance as at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
| Transfer to Stage 1 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
| Transfer to Stage 2 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
| Transfer to Stage 3 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
| Net remeasurement of loss allowance |
( |
) |
( |
) | ||||||||||||||||||||||||||||
| Loan originations |
- |
- |
- | |||||||||||||||||||||||||||||
| Loan purchases |
- |
- |
- |
- |
- | - | ||||||||||||||||||||||||||
| Derecognitions and maturities |
( |
) |
( |
) |
- |
( |
) |
( |
) | ( |
) | - | ( |
) | ||||||||||||||||||
| Model changes |
- |
- |
- |
- |
( |
) | ( |
) | - | ( |
) | |||||||||||||||||||||
| Total PCL (2) |
( |
) |
||||||||||||||||||||||||||||||
| Write-offs (3) |
- |
- |
( |
) |
( |
) |
- | - | ( |
) | ( |
) | ||||||||||||||||||||
| Recoveries of previous write-offs |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Foreign exchange and other |
( |
) |
( |
) |
- | ( |
) | ( |
) | |||||||||||||||||||||||
| Balance as at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
| Loans: Credit cards |
||||||||||||||||||||||||||||||||
| Balance as at beginning of period |
$ |
$ |
$ |
- |
$ |
$ | $ | $ | - | $ | ||||||||||||||||||||||
| Transfer to Stage 1 |
( |
) |
- |
- |
( |
) | - | - | ||||||||||||||||||||||||
| Transfer to Stage 2 |
( |
) |
- |
- |
( |
) | - | - | ||||||||||||||||||||||||
| Transfer to Stage 3 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
| Net remeasurement of loss allowance |
( |
) |
( |
) | ||||||||||||||||||||||||||||
| Loan originations |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Loan purchases |
- |
- |
- |
- |
- | - | ||||||||||||||||||||||||||
| Derecognitions and maturities |
( |
) |
( |
) |
- |
( |
) |
( |
) | ( |
) | - | ( |
) | ||||||||||||||||||
| Model changes |
- |
- |
- |
- | - | - | - | |||||||||||||||||||||||||
| Total PCL (2) |
- | |||||||||||||||||||||||||||||||
| Write-offs (3) |
- |
- |
( |
) |
( |
) |
- | - | ( |
) | ( |
) | ||||||||||||||||||||
| Recoveries of previous write-offs |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Foreign exchange and other |
( |
) |
( |
) |
- | ( |
) | ( |
) | |||||||||||||||||||||||
| Balance as at end of period |
$ |
$ |
$ |
- |
$ |
$ | $ | $ | - | $ | ||||||||||||||||||||||
| Loans: Business and government |
||||||||||||||||||||||||||||||||
| Balance as at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
| Transfer to Stage 1 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
| Transfer to Stage 2 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
| Transfer to Stage 3 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
| Net remeasurement of loss allowance |
( |
) |
( |
) | ||||||||||||||||||||||||||||
| Loan originations |
- |
- |
- | |||||||||||||||||||||||||||||
| Loan purchases |
- |
- |
- |
- |
- | - | ||||||||||||||||||||||||||
| Derecognitions and maturities |
( |
) |
( |
) |
- |
( |
) |
( |
) | ( |
) | - | ( |
) | ||||||||||||||||||
| Model changes |
- |
- |
- |
- | ( |
) | - | ( |
) | |||||||||||||||||||||||
| Total PCL (2) |
( |
) |
||||||||||||||||||||||||||||||
| Write-offs (3) |
- |
- |
( |
) |
( |
) |
- | - | ( |
) | ( |
) | ||||||||||||||||||||
| Recoveries of previous write-offs |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Foreign exchange and other |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||
| Balance as at end of period |
$ |
$ |
$ |
$ |
$ | |
$ | $ | $ | |||||||||||||||||||||||
| Total as at end of period |
$ |
$ |
$ |
$ |
$ | $ | |
$ | $ | |||||||||||||||||||||||
| Comprising: Loans |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | |
|||||||||||||||||||||||
| Other credit instruments (4) |
||||||||||||||||||||||||||||||||
| (1) | Includes changes in the allowance for PCI loans. |
| (2) | Excludes PCL on other assets of $ |
| (3) | Generally, we continue to seek recovery on amounts that were written off during the year, unless the loan is sold, we no longer have the right to collect or we have exhausted all reasonable efforts to collect. |
| (4) | Other credit instruments, including off-balance sheet items, are recorded in other liabilities in our Consolidated Balance Sheet. |
62 |
(Canadian $ in millions) |
||||||||||||||||||||||||||||||||
For the six months ended |
April 30, 2024 |
April 30, 2023 | ||||||||||||||||||||||||||||||
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||||||||||||||||
Loans: Residential mortgages |
||||||||||||||||||||||||||||||||
Balance as at beginning of period |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||
Transfer to Stage 1 |
( |
) |
( |
) |
- |
( |
) | - | - | |||||||||||||||||||||||
Transfer to Stage 2 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
Transfer to Stage 3 |
- |
( |
) |
- |
( |
) | ( |
) | - | |||||||||||||||||||||||
Net remeasurement of loss allowance |
( |
) |
( |
) | - | |||||||||||||||||||||||||||
Loan originations |
- |
- |
- | - | ||||||||||||||||||||||||||||
Loan purchases |
- |
- |
- |
- |
- | - | ||||||||||||||||||||||||||
Derecognitions and maturities |
( |
) |
( |
) |
- |
( |
) |
( |
) | ( |
) | - | ( |
) | ||||||||||||||||||
Model changes |
( |
) |
( |
) |
- |
( |
) |
( |
) | - | ||||||||||||||||||||||
Total PCL (2) |
( |
) |
||||||||||||||||||||||||||||||
Write-offs (3) |
- |
- |
( |
) |
( |
) |
- | - | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries of previous write-offs |
- |
- |
- | - | ||||||||||||||||||||||||||||
Foreign exchange and other |
( |
) |
( |
) |
( |
) |
( |
) |
- | ( |
) | ( |
) | |||||||||||||||||||
Balance as at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Loans: Consumer instalment and other personal |
||||||||||||||||||||||||||||||||
Balance as at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Transfer to Stage 1 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
Transfer to Stage 2 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
Transfer to Stage 3 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
Net remeasurement of loss allowance |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Loan originations |
- |
- |
- | |||||||||||||||||||||||||||||
Loan purchases |
- |
- |
- |
- |
- | - | ||||||||||||||||||||||||||
Derecognitions and maturities |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | - | ( |
) | |||||||||||||||||
Model changes |
- |
( |
) | ( |
) | - | ( |
) | ||||||||||||||||||||||||
Total PCL (2) |
( |
) |
||||||||||||||||||||||||||||||
Write-offs (3) |
- |
- |
( |
) |
( |
) |
- | - | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries of previous write-offs |
- |
- |
- | - | ||||||||||||||||||||||||||||
Foreign exchange and other |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | - | ( |
) | ( |
) | |||||||||||||||||
Balance as at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Loans: Credit cards |
||||||||||||||||||||||||||||||||
Balance as at beginning of period |
$ |
$ |
$ |
- |
$ |
$ | $ | $ | - | $ | ||||||||||||||||||||||
Transfer to Stage 1 |
( |
) |
- |
- |
( |
) | - | - | ||||||||||||||||||||||||
Transfer to Stage 2 |
( |
) |
- |
- |
( |
) | - | - | ||||||||||||||||||||||||
Transfer to Stage 3 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
Net remeasurement of loss allowance |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Loan originations |
- |
- |
- | - | ||||||||||||||||||||||||||||
Loan purchases |
- |
- |
- |
- |
- | - | ||||||||||||||||||||||||||
Derecognitions and maturities |
( |
) |
( |
) |
- |
( |
) |
( |
) | ( |
) | - | ( |
) | ||||||||||||||||||
Model changes |
- |
- | - | - | ||||||||||||||||||||||||||||
Total PCL (2) |
||||||||||||||||||||||||||||||||
Write-offs (3) |
- |
- |
( |
) |
( |
) |
- | - | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries of previous write-offs |
- |
- |
- | - | ||||||||||||||||||||||||||||
Foreign exchange and other |
- |
( |
) |
( |
) |
( |
) |
- | ( |
) | ( |
) | ( |
) | ||||||||||||||||||
Balance as at end of period |
$ |
$ |
$ |
- |
$ |
$ | $ | $ | - | $ | ||||||||||||||||||||||
Loans: Business and government |
||||||||||||||||||||||||||||||||
Balance as at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Transfer to Stage 1 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
Transfer to Stage 2 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
Transfer to Stage 3 |
( |
) |
( |
) |
- |
( |
) | ( |
) | - | ||||||||||||||||||||||
Net remeasurement of loss allowance |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Loan originations |
- |
- | ||||||||||||||||||||||||||||||
Loan purchases |
- |
- |
- |
- |
- | - | ||||||||||||||||||||||||||
Derecognitions and maturities |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | - | ( |
) | |||||||||||||||||
Model changes |
- |
- | ( |
) | - | ( |
) | |||||||||||||||||||||||||
Total PCL (2) |
( |
) |
||||||||||||||||||||||||||||||
Write-offs (3) |
- |
- |
( |
) |
( |
) |
- | - | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries of previous write-offs |
- |
- |
- | - | ||||||||||||||||||||||||||||
Foreign exchange and other |
( |
) |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||
Balance as at end of period |
$ |
$ |
$ |
$ |
$ | |
$ | $ | $ | |||||||||||||||||||||||
Total as at end of period |
$ |
$ |
$ |
$ |
$ | $ | |
$ | |
$ | ||||||||||||||||||||||
Comprising: Loans |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | |
|||||||||||||||||||||||
Other credit instruments (4) |
||||||||||||||||||||||||||||||||
| (1) | Includes changes in the allowance for PCI loans. |
| (2) | Excludes PCL on other assets of $ |
| (3) | Generally, we continue to seek recovery on amounts that were written off during the year, unless the loan is sold, we no longer have the right to collect or we have exhausted all reasonable efforts to collect. |
| (4) | Other credit instruments, including off-balance sheet items, are recorded in other liabilities in our Consolidated Balance Sheet. |
| BMO Financial Group Second Quarter Report 2024 63 |
(Canadian $ in millions) |
April 30, 2024 |
October 31, 2023 | ||||||||||||||||||||||
30 to 89 days |
90 days or more |
Total |
30 to 89 days | 90 days or more (1) | Total | |||||||||||||||||||
Residential mortgages |
$ |
$ |
$ |
$ | |
$ | $ | |
||||||||||||||||
Credit cards, consumer instalment and other personal |
||||||||||||||||||||||||
Business and government |
||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ | |
$ | $ | |
||||||||||||||||
| (1) | Fully secured loans with amounts between 90 and 180 days past due that we have not classified as impaired totalled $ |
64 |
As at April 30, 2024 |
||||||||||||||||||||||||||||||||
Scenarios |
||||||||||||||||||||||||||||||||
All figures are average annual values |
Upside |
Base |
Downside |
Severe downside |
||||||||||||||||||||||||||||
First 12 months |
Remaining horizon |
First 12 months |
Remaining horizon |
First 12 months |
Remaining horizon |
First 12 months |
Remaining horizon |
|||||||||||||||||||||||||
Real GDP growth rates (2) |
||||||||||||||||||||||||||||||||
Canada |
( |
( |
||||||||||||||||||||||||||||||
United States |
( |
( |
||||||||||||||||||||||||||||||
Corporate BBB 10-year spread |
||||||||||||||||||||||||||||||||
Canada |
||||||||||||||||||||||||||||||||
United States |
||||||||||||||||||||||||||||||||
Unemployment rates |
||||||||||||||||||||||||||||||||
Canada |
||||||||||||||||||||||||||||||||
United States |
||||||||||||||||||||||||||||||||
Housing Price Index (2) |
||||||||||||||||||||||||||||||||
Canada (3) |
( |
( |
( |
( |
( |
|||||||||||||||||||||||||||
United States (4) |
( |
( |
( |
( |
||||||||||||||||||||||||||||
As at October 31, 2023 |
||||||||||||||||||||||||||||||||
Scenarios |
||||||||||||||||||||||||||||||||
All figures are average annual values |
Upside |
Base |
Severe downside |
|||||||||||||||||||||||||||||
First 12 months |
Remaining horizon (1) |
First 12 months |
Remaining horizon (1) |
First 12 months |
Remaining horizon (1) |
|||||||||||||||||||||||||||
Real GDP growth rates (2) |
||||||||||||||||||||||||||||||||
Canada |
( |
|||||||||||||||||||||||||||||||
United States |
( |
|||||||||||||||||||||||||||||||
Corporate BBB 10-year spread |
||||||||||||||||||||||||||||||||
Canada |
||||||||||||||||||||||||||||||||
United States |
||||||||||||||||||||||||||||||||
Unemployment rates |
||||||||||||||||||||||||||||||||
Canada |
||||||||||||||||||||||||||||||||
United States |
||||||||||||||||||||||||||||||||
Housing Price Index (2) |
||||||||||||||||||||||||||||||||
Canada (3) |
( |
( |
||||||||||||||||||||||||||||||
United States (4) |
( |
( |
( |
|||||||||||||||||||||||||||||
(1) |
The remaining forecast period is two years. |
(2) |
Real gross domestic product (GDP) and housing price index are averages of quarterly year-over-year growth rates. |
(3) |
In Canada, we use the Housing Price Index Benchmark Composite. |
(4) |
In the United States, we use the National Case-Shiller House Price Index. |
| BMO Financial Group Second Quarter Report 2024 65 |
Payable on demand |
||||||||||||||||||||||||
(Canadian $ in millions) |
Interest bearing |
Non-interest bearing |
Payable after notice |
Payable on a fixed date |
April 30, 2024 |
October 31, 2023 |
||||||||||||||||||
Deposits by: |
||||||||||||||||||||||||
Banks (4) |
$ |
$ |
$ |
$ |
$ |
$ | ||||||||||||||||||
Business and government |
||||||||||||||||||||||||
Individuals |
||||||||||||||||||||||||
Total (5) |
$ |
$ |
$ |
$ |
$ |
$ | ||||||||||||||||||
Booked in: |
||||||||||||||||||||||||
Canada |
$ |
$ |
$ |
$ |
$ |
$ | ||||||||||||||||||
United States |
||||||||||||||||||||||||
Other countries |
||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ |
$ | ||||||||||||||||||
| (1) | Includes $ |
| (2) | Includes $ (Bail-In) regime ($Bail-In regime provides certain statutory powers to the Canada Deposit Insurance Corporation, including the ability to convert specified eligible shares and liabilities into common shares if the bank becomes non-viable. |
| (3) | Deposits totalling $ |
| (4) | Includes regulated and central banks. |
| (5) | Includes $ |
(Canadian $ in millions) |
Canada |
United States |
Other |
Total |
||||||||||||
As at April 30, 2024 |
$ |
$ |
$ |
$ |
||||||||||||
As at October 31, 2023 |
|
|
|
|
||||||||||||
(Canadian $ in millions) |
Less than 3 months |
3 to 6 months |
6 to 12 months |
Over 12 months |
Total |
|||||||||||||||
As at April 30, 2024 |
$ |
|||||||||||||||||||
As at October 31, 2023 |
|
|||||||||||||||||||
66 |
| (Canadian $ in millions, except as noted) |
April 30, 2024 |
October 31, 2023 |
||||||||||||||||||||||||||||||
Number of shares |
Amount |
Dividends declared per share |
Number of shares |
Amount |
Dividends declared per share (2) |
Convertible into |
||||||||||||||||||||||||||
| Preferred Shares - Classified as Equity |
||||||||||||||||||||||||||||||||
| Class B – Series 27 |
$ |
$ |
$ | $ | (3) (4) | |||||||||||||||||||||||||||
| Class B – Series 29 |
(3) (4) | |||||||||||||||||||||||||||||||
| Class B – Series 31 |
(3) (4) | |||||||||||||||||||||||||||||||
| Class B – Series 33 |
(3) (4) | |||||||||||||||||||||||||||||||
| Class B – Series 44 |
(3) (4) | |||||||||||||||||||||||||||||||
| Class B – Series 46 |
(3) (4) | |||||||||||||||||||||||||||||||
| Class B – Series 50 |
(4) | |||||||||||||||||||||||||||||||
| Class B – Series 52 |
(4) | |||||||||||||||||||||||||||||||
| Preferred Shares - Classified as Equity |
$ |
$ | ||||||||||||||||||||||||||||||
| Recourse to | ||||||||||||||||||||||||||||||||
| Other Equity Instruments |
||||||||||||||||||||||||||||||||
| 4.800% Additional Tier 1 Capital Notes (AT1 Notes) |
$ |
$ | - | (4) (6) | ||||||||||||||||||||||||||||
| 4.300% Limited Recourse Capital Notes, Series 1 (Series 1 LRCNs) |
(4) (5) (6) | |||||||||||||||||||||||||||||||
| 5.625% Limited Recourse Capital Notes, Series 2 (Series 2 LRCNs) |
(4) (5) (6) | |||||||||||||||||||||||||||||||
| 7.325% Limited Recourse Capital Notes, Series 3 (Series 3 LRCNs) |
(4) (5) (6) | |||||||||||||||||||||||||||||||
| 7.700% Limited Recourse Capital Notes, Series 4 (Series 4 LRCNs) |
- | (4) (5) (6) | ||||||||||||||||||||||||||||||
| Other Equity Instruments |
||||||||||||||||||||||||||||||||
| Preferred Shares and Other Equity Instruments |
||||||||||||||||||||||||||||||||
| Common Shares |
$ |
$ |
$ |
$ | (7) (8) (9) | |||||||||||||||||||||||||||
| (1) | For additional information refer to Notes 16 and 20 of our annual consolidated financial statements for the year ended October 31, 2023. |
| (2) | Represents year-to-date dividends declared per share as at reporting date. Non-cumulative dividends on preferred shares are payable quarterly as and when declared by the Board of Directors, except for Class B – Series 50 and 52 preferred share dividends, which are payable semi-annually. |
| (3) | If converted, the holders have the option to convert back to the original preferred shares on subsequent redemption dates, subject to certain conditions. |
| (4) | The instruments issued include a non-viability contingent capital (NVCC) provision, which is necessary for the preferred shares, AT1 Notes and by virtue of the recourse to the Preferred Shares Series 48, Preferred Shares Series 49, Preferred Shares Series 51 and Preferred Shares Series 53 (collectively, the LRCN Preferred Shares) for Series 1, Series 2, Series 3 and Series 4 LRCNs (collectively, the LRCNs), respectively, to qualify as regulatory capital under Basel III. As such, they are convertible into a variable number of our common shares if OSFI announces that the bank is, or is about to become, non-viable or if a federal or provincial government in Canada publicly announces that the bank has accepted or agreed to accept a capital injection, or equivalent support, to avoid non-viability. In such an event, each preferred share, including the LRCN Preferred Shares and AT1 Notes, is convertible into common shares pursuant to an automatic conversion formula and a conversion price based on the greater of: (i) a floor price of $ |
| (5) | Non-deferrable interest is payable semi-annually on the Series 1, Series 2 and Series 3 LRCNs and quarterly on the Series 4 LRCNs at the bank’s discretion. Non-payment of interest will result in a recourse event, with the noteholders’ sole remedy being the holders’ proportionate share of trust assets comprised of the LRCN Preferred Shares, each series of which is issued concurrently with the corresponding LRCNs and are eliminated on consolidation. In such an event, the delivery of the trust assets will represent the full and complete extinguishment of our obligations under the LRCNs. In circumstances where the LRCN Preferred Shares are converted into common shares of the bank under the NVCC provision, the LRCNs would be redeemed and the noteholders’ sole remedy would be their proportionate share of trust assets, then comprised of common shares of the bank received by the trust on conversion. |
| (6) | The rates represent the annual interest rate percentage applicable to the notes issued as at the reporting date. |
| (7) | The stock options issued under the Stock Option Plan are convertible into |
| (8) | During the three and six months ended April 30, 2024, we issued |
| (9) | Common shares are net of |
| BMO Financial Group Second Quarter Report 2024 67 |
| (Canadian $ in millions) |
April 30, 2024 |
October 31, 2023 | ||||||||||||||
Carrying value |
Fair value |
Carrying value | Fair value | |||||||||||||
| Securities |
||||||||||||||||
| Amortized cost |
$ |
$ |
$ | $ | ||||||||||||
| Loans |
||||||||||||||||
| Residential mortgages |
||||||||||||||||
| Consumer instalment and other personal |
|
|||||||||||||||
| Credit cards |
||||||||||||||||
| Business and government |
|
|||||||||||||||
| Deposits (3) |
||||||||||||||||
| Securitization and structured entities’ liabilities (4) |
||||||||||||||||
| Other liabilities |
||||||||||||||||
| Subordinated debt |
||||||||||||||||
| (1) | Carrying value is net of ACL. |
| (2) | Excludes $ |
| (3) | Excludes $ |
| (4) | Excludes $ |
| (5) | Other liabilities include certain other liabilities of subsidiaries, other than deposits. |
68 |
| BMO Financial Group Second Quarter Report 2024 69 |
| (Canadian $ in millions) |
April 30, 2024 |
October 31, 2023 | ||||||||||||||||||||||||||||||
Valued using quoted market prices |
Valued using models (with observable inputs) |
Valued using models (without observable inputs) |
Total |
Valued using quoted market prices |
Valued using models (with observable inputs) |
Valued using models (without observable inputs) |
Total | |||||||||||||||||||||||||
| Trading Securities |
||||||||||||||||||||||||||||||||
| Issued or guaranteed by: |
||||||||||||||||||||||||||||||||
| Canadian federal government |
$ |
$ |
$ |
- |
$ |
$ | $ | $ | - | $ | ||||||||||||||||||||||
| Canadian provincial and municipal governments |
- |
- | ||||||||||||||||||||||||||||||
| U.S. federal government |
- |
- | ||||||||||||||||||||||||||||||
| U.S. states, municipalities and agencies |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Other governments |
- |
- | ||||||||||||||||||||||||||||||
| NHA MBS, and U.S. agency MBS and CMO |
- |
- | |
|
||||||||||||||||||||||||||||
| Corporate debt |
- |
|||||||||||||||||||||||||||||||
| Trading loans |
- |
- |
- | |||||||||||||||||||||||||||||
| Corporate equity |
- |
|
||||||||||||||||||||||||||||||
| FVTPL Securities |
||||||||||||||||||||||||||||||||
| Issued or guaranteed by: |
||||||||||||||||||||||||||||||||
| Canadian federal government |
- |
- | ||||||||||||||||||||||||||||||
| Canadian provincial and municipal governments |
- |
- | ||||||||||||||||||||||||||||||
| U.S. federal government |
- |
- | ||||||||||||||||||||||||||||||
| Other governments |
- |
- |
- | - | ||||||||||||||||||||||||||||
| NHA MBS, and U.S. agency MBS and CMO |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Corporate debt |
||||||||||||||||||||||||||||||||
| Corporate equity |
||||||||||||||||||||||||||||||||
| FVOCI Securities |
||||||||||||||||||||||||||||||||
| Issued or guaranteed by: |
||||||||||||||||||||||||||||||||
| Canadian federal government |
- |
- | ||||||||||||||||||||||||||||||
| Canadian provincial and municipal governments |
- |
- | ||||||||||||||||||||||||||||||
| U.S. federal government |
- |
- | ||||||||||||||||||||||||||||||
| U.S. states, municipalities and agencies |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Other governments |
- |
- | ||||||||||||||||||||||||||||||
| NHA MBS, and U.S. agency MBS and CMO |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Corporate debt |
- |
- | ||||||||||||||||||||||||||||||
| Corporate equity |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Loans |
||||||||||||||||||||||||||||||||
| Residential mortgages |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Business and government loans |
- |
- | ||||||||||||||||||||||||||||||
- |
- | |||||||||||||||||||||||||||||||
| Other Assets |
||||||||||||||||||||||||||||||||
| Fair Value Liabilities |
||||||||||||||||||||||||||||||||
| Deposits (3) |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Securities sold but not yet purchased |
- |
- | ||||||||||||||||||||||||||||||
| Other liabilities (4) |
- |
|||||||||||||||||||||||||||||||
- |
||||||||||||||||||||||||||||||||
| Derivative Assets |
||||||||||||||||||||||||||||||||
| Interest rate contracts |
- |
- | ||||||||||||||||||||||||||||||
| Foreign exchange contracts |
- |
- | ||||||||||||||||||||||||||||||
| Commodity contracts |
- |
|||||||||||||||||||||||||||||||
| Equity contracts |
- | |||||||||||||||||||||||||||||||
| Credit default swaps |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Derivative Liabilities |
||||||||||||||||||||||||||||||||
| Interest rate contracts |
- |
- | ||||||||||||||||||||||||||||||
| Foreign exchange contracts |
- |
- |
- | |||||||||||||||||||||||||||||
| Commodity contracts |
||||||||||||||||||||||||||||||||
| Equity contracts |
||||||||||||||||||||||||||||||||
| Credit default swaps |
- |
- | ||||||||||||||||||||||||||||||
| (1) | Other assets include precious metals, segregated fund assets and investment properties in our insurance business, carbon credits, certain receivables and other items measured at fair value. |
| (2) | Interest expense for liabilities carried at fair value is $ |
| (3) | Deposits include structured note liabilities and metals deposits designated at FVTPL and certain embedded options related to structured deposits carried at amortized cost. |
| (4) | Other liabilities include investment contract liabilities and segregated fund liabilities in our insurance business, as well as certain securitization and structured entities’ liabilities measured at FVTPL. |
70 |
| (Canadian $ in millions, except as noted) |
April 30, 2024 |
|||||||||||||||||||
Range of input values |
||||||||||||||||||||
| Reporting line in fair value hierarchy table |
Fair value of assets |
Valuation techniques |
Significant unobservable inputs |
Low |
High |
|||||||||||||||
| Private equity |
Corporate equity | $ |
Net asset value | Net asset value | na |
na |
||||||||||||||
| EV/EBITDA | Multiple | |||||||||||||||||||
| Investment Properties |
Other assets - other | Discounted cash flows | Discount margin | |||||||||||||||||
| NHA MBS, U.S. agency MBS and CMO |
NHA MBS, U.S. agency MBS and CMO | Discounted cash flows | Prepayment rate | |||||||||||||||||
| Market comparable | Comparability Adjustment (2) | |||||||||||||||||||
| (1) | The low and high input values represent the lowest and highest actual level of inputs used to value a group of financial instruments in a particular product category. These input ranges do not reflect the level of input uncertainty, but are affected by the specific underlying instruments within each product category. The input ranges will therefore vary from period to period based on the characteristics of the underlying instruments held at each balance sheet date. |
| (2) | Range of input values represents price per security adjustment (Canadian $). |
| (Canadian $ in millions) |
||||||||||||||||
| For the three months ended |
April 30, 2024 |
April 30, 2023 | ||||||||||||||
Level 1 to Level 2 |
Level 2 to Level 1 |
Level 1 to Level 2 | Level 2 to Level 1 | |||||||||||||
| Trading securities |
$ |
$ |
$ | $ | ||||||||||||
| FVTPL securities |
||||||||||||||||
| FVOCI securities |
||||||||||||||||
| Securities sold but not yet purchased |
||||||||||||||||
| (Canadian $ in millions) |
||||||||||||||||
| For the six months ended |
April 30, 2024 |
April 30, 2023 | ||||||||||||||
Level 1 to Level 2 |
Level 2 to Level 1 |
Level 1 to Level 2 | Level 2 to Level 1 | |||||||||||||
| Trading securities |
$ |
$ |
$ | $ | ||||||||||||
| FVTPL securities |
||||||||||||||||
| FVOCI securities |
||||||||||||||||
| Securities sold but not yet purchased |
||||||||||||||||
| BMO Financial Group Second Quarter Report 2024 71 |
Change in fair value |
Movements |
Transfers |
||||||||||||||||||||||||||||||||||||||
| For the three months ended April 30, 2024 (Canadian $ in millions) |
Balance January 31, 2024 |
Included in earnings |
Included in other comprehensive income |
Issuances/ Purchases |
Sales |
Maturities/ Settlement |
Transfers into Level 3 |
Transfers out of Level 3 |
Fair Value as at April 30, 2024 |
Change in unrealized gains (losses) recorded in income for instruments still held |
||||||||||||||||||||||||||||||
| Trading Securities |
||||||||||||||||||||||||||||||||||||||||
| NHA MBS and U.S. agency MBS and CMO |
$ | $ |
( |
) |
$ |
$ |
$ |
( |
) |
$ |
- |
$ |
$ |
( |
) |
$ |
$ |
( |
) | |||||||||||||||||||||
| Corporate debt |
- |
- |
( |
) |
- |
- |
( |
) |
- |
- |
||||||||||||||||||||||||||||||
| Corporate equity |
- | - |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
| Total trading securities |
( |
) |
( |
) |
- |
( |
) |
( |
) | |||||||||||||||||||||||||||||||
| FVTPL Securities |
||||||||||||||||||||||||||||||||||||||||
| Corporate debt |
( |
) |
- |
- |
- |
- |
- |
( |
) | |||||||||||||||||||||||||||||||
| Corporate equity |
( |
) |
- |
- |
- |
|||||||||||||||||||||||||||||||||||
| Total FVTPL securities |
( |
) |
- |
- |
- |
|||||||||||||||||||||||||||||||||||
| FVOCI Securities |
||||||||||||||||||||||||||||||||||||||||
| Issued or guaranteed by: |
||||||||||||||||||||||||||||||||||||||||
| U.S. states, municipalities and agencies |
- | - |
- |
- |
- |
- |
- |
- |
- |
na |
||||||||||||||||||||||||||||||
| Corporate equity |
- |
- |
- |
- |
- |
- |
na |
|||||||||||||||||||||||||||||||||
| Total FVOCI securities |
- |
- |
- |
- |
- |
- |
na |
|||||||||||||||||||||||||||||||||
| Business and Government Loans |
- |
- |
( |
) |
- |
- |
||||||||||||||||||||||||||||||||||
| Other Assets |
( |
) |
- |
- |
( |
) |
- |
- |
( |
) | ||||||||||||||||||||||||||||||
| Derivative Assets |
||||||||||||||||||||||||||||||||||||||||
| Foreign exchange contracts |
- | - |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
| Commodity contracts |
( |
) |
- |
- |
- |
- |
- |
- |
- |
( |
) | |||||||||||||||||||||||||||||
| Equity contracts |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||||||||||||||||||
| Total derivative assets |
( |
) |
- |
- |
- |
- |
- |
( |
) | |||||||||||||||||||||||||||||||
| Other Liabilities |
- |
- |
- |
- |
( |
) |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
| Derivative Liabilities |
||||||||||||||||||||||||||||||||||||||||
| Foreign exchange contracts |
- | - |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
| Commodity contracts |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||||
| Equity contracts |
- | - |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||
| Credit default swaps |
( |
) |
- |
- |
- |
- |
- |
( |
) | |||||||||||||||||||||||||||||||
| Total derivative liabilities |
- |
- |
- |
- |
- |
- |
- |
|||||||||||||||||||||||||||||||||
Change in fair value |
Movements |
Transfers |
||||||||||||||||||||||||||||||||||||||
| For the six months ended April 30, 2024 (Canadian $ in millions) |
Balance October 31, 2023 |
Included in earnings |
Included in other comprehensive income |
Issuances/ Purchases |
Sales |
Maturities/ Settlement |
Transfers into Level 3 |
Transfers out of Level 3 |
Fair Value as at April 30, 2024 |
Change in unrealized gains (losses) recorded in income for instruments still held |
||||||||||||||||||||||||||||||
| Trading Securities |
||||||||||||||||||||||||||||||||||||||||
| NHA MBS and U.S. agency MBS and CMO |
$ | $ |
( |
) |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
- |
$ |
$ |
( |
) |
$ |
$ |
( |
) | |||||||||||||||||||
| Corporate debt |
- |
( |
) |
- |
( |
) |
- |
|||||||||||||||||||||||||||||||||
| Corporate equity |
- |
- |
- |
- |
- |
- |
( |
) |
- |
- |
||||||||||||||||||||||||||||||
| Total trading securities |
( |
) |
( |
) |
( |
) |
- |
( |
) |
( |
) | |||||||||||||||||||||||||||||
| FVTPL Securities |
||||||||||||||||||||||||||||||||||||||||
| Corporate debt |
( |
) |
- |
- |
- |
- |
- |
( |
) | |||||||||||||||||||||||||||||||
| Corporate equity |
( |
) |
( |
) |
( |
) |
- |
- |
( |
) |
||||||||||||||||||||||||||||||
| Total FVTPL securities |
( |
) |
( |
) |
( |
) |
- |
- |
( |
) |
||||||||||||||||||||||||||||||
| FVOCI Securities |
||||||||||||||||||||||||||||||||||||||||
| Issued or guaranteed by: |
||||||||||||||||||||||||||||||||||||||||
| U.S. states, municipalities and agencies |
- | - |
- |
- |
- |
- |
- |
- |
- |
na |
||||||||||||||||||||||||||||||
| Corporate equity |
- |
- |
- |
- |
- |
na |
||||||||||||||||||||||||||||||||||
| Total FVOCI securities |
- |
- |
- |
- |
- |
na |
||||||||||||||||||||||||||||||||||
| Business and Government Loans |
- |
( |
) |
- |
( |
) |
- |
- |
||||||||||||||||||||||||||||||||
| Other Assets |
( |
) |
- |
( |
) |
( |
) |
- |
- |
- |
||||||||||||||||||||||||||||||
| Derivative Assets |
||||||||||||||||||||||||||||||||||||||||
| Foreign exchange contracts |
- | - |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
| Commodity contracts |
( |
) |
- |
- |
- |
- |
- |
- |
- |
( |
) | |||||||||||||||||||||||||||||
| Equity contracts |
- | - |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||
| Total derivative assets |
( |
) |
- |
- |
- |
- |
- |
( |
) | |||||||||||||||||||||||||||||||
| Other Liabilities |
- |
- |
- |
( |
) |
- |
- |
- |
- |
|||||||||||||||||||||||||||||||
| Derivative Liabilities |
||||||||||||||||||||||||||||||||||||||||
| Foreign exchange contracts |
- | - |
- |
- |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
| Commodity contracts |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||||
| Equity contracts |
- |
- |
- |
- |
- |
( |
) |
- |
||||||||||||||||||||||||||||||||
| Credit default swaps |
( |
) |
- |
- |
- |
- |
- |
( |
) | |||||||||||||||||||||||||||||||
| Total derivative liabilities |
( |
) |
- |
- |
- |
- |
( |
) |
- |
|||||||||||||||||||||||||||||||
| (1) | Foreign exchange translation on assets and liabilities held by foreign operations is included in other comprehensive income, net foreign operations. |
| (2) | Changes in unrealized gains (losses) on Trading and FVTPL securities still held on April 30, 2024 are included in earnings for the period. |
72 |
Change in fair value |
Movements |
Transfers |
||||||||||||||||||||||||||||||||||||||
For the three months ended April 30, 2023 (Canadian $ in millions) |
Balance January 31, 2023 |
Included in earnings |
Included in other comprehensive income |
Issuances/ Purchases |
Sales |
Maturities/ Settlement |
Transfers into Level 3 |
Transfers out of Level 3 |
Fair Value as at April 30, 2023 |
Change in unrealized gains (losses) recorded in income for instruments still held |
||||||||||||||||||||||||||||||
Trading Securities |
||||||||||||||||||||||||||||||||||||||||
NHA MBS and U.S. agency MBS and CMO |
$ | $ | ( |
) | $ | $ | $ | ( |
) | $ | - | $ | $ | ( |
) | $ | $ | |||||||||||||||||||||||
Corporate debt |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Corporate equity |
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Total trading securities |
( |
) | ( |
) | - | ( |
) | |||||||||||||||||||||||||||||||||
FVTPL Securities |
||||||||||||||||||||||||||||||||||||||||
Corporate debt |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Corporate equity |
( |
) | ( |
) | - | - | - | |||||||||||||||||||||||||||||||||
Total FVTPL securities |
( |
) | ( |
) | - | - | - | |||||||||||||||||||||||||||||||||
FVOCI Securities |
||||||||||||||||||||||||||||||||||||||||
Issued or guaranteed by: |
||||||||||||||||||||||||||||||||||||||||
U.S. states, municipalities and agencies |
- | - | - | - | ( |
) | - | - | - | na | ||||||||||||||||||||||||||||||
Corporate equity |
- | ( |
) | - | - | - | na | |||||||||||||||||||||||||||||||||
Total FVOCI securities |
- | ( |
) | ( |
) | - | - | na | ||||||||||||||||||||||||||||||||
Business and Government Loans |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Other Assets |
- | - | - | ( |
) | - | - | |||||||||||||||||||||||||||||||||
Derivative Assets |
||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts |
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Commodity contracts |
( |
) | - | - | - | - | - | - | ( |
) | ||||||||||||||||||||||||||||||
Equity contracts |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Total derivative assets |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Other Liabilities |
- | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Derivative Liabilities |
||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts |
- | - | - | - | ( |
) | - | - | - | - | ||||||||||||||||||||||||||||||
Commodity contracts |
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Equity contracts |
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Credit default swaps |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Total derivative liabilities |
- | - | - | - | ( |
) | - | - | - | |||||||||||||||||||||||||||||||
Change in fair value |
Movements |
Transfers |
||||||||||||||||||||||||||||||||||||||
For the six months ended April 30, 2023 (Canadian $ in millions) |
Balance October 31, 2022 |
Included in earnings |
Included in other comprehensive income |
Issuances/ Purchases |
Sales |
Maturities/ Settlement |
Transfers into Level 3 |
Transfers out of Level 3 |
Fair Value as at April 30, 2023 |
Change in (3)unrealized gains (losses) recorded in income for instruments still held |
||||||||||||||||||||||||||||||
Trading Securities |
||||||||||||||||||||||||||||||||||||||||
NHA MBS and U.S. agency MBS and CMO |
$ | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | - | $ | $ | ( |
) | $ | $ | ( |
) | |||||||||||||||||||
Corporate debt |
- | - | - | - | ( |
) | - | |||||||||||||||||||||||||||||||||
Corporate equity |
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Total trading securities |
( |
) | ( |
) | ( |
) | - | ( |
) | ( |
) | |||||||||||||||||||||||||||||
FVTPL Securities |
||||||||||||||||||||||||||||||||||||||||
Corporate debt |
- | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Corporate equity |
( |
) | ( |
) | ( |
) | - | - | ||||||||||||||||||||||||||||||||
Total FVTPL securities |
( |
) | ( |
) | ( |
) | - | - | ||||||||||||||||||||||||||||||||
FVOCI Securities |
||||||||||||||||||||||||||||||||||||||||
Issued or guaranteed by: |
||||||||||||||||||||||||||||||||||||||||
U.S. states, municipalities and agencies |
- | - | - | - | ( |
) | - | - | - | na | ||||||||||||||||||||||||||||||
Corporate equity |
- | - | ( |
) | - | - | - | na | ||||||||||||||||||||||||||||||||
Total FVOCI securities |
- | - | ( |
) | ( |
) | - | - | na | |||||||||||||||||||||||||||||||
Business and Government Loans |
- | - | ( |
) | - | - | - | |||||||||||||||||||||||||||||||||
Other Assets |
- | - | ( |
) | - | - | ||||||||||||||||||||||||||||||||||
Derivative Assets |
||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts |
( |
) | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Commodity contracts |
- | ( |
) | - | - | - | - | - | ( |
) | ||||||||||||||||||||||||||||||
Equity contracts |
- | - | - | - | - | - | ||||||||||||||||||||||||||||||||||
Total derivative assets |
( |
) | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Other Liabilities |
- | - | - | - | - | - | - | |||||||||||||||||||||||||||||||||
Derivative Liabilities |
||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts |
- | - | - | - | ( |
) | - | - | - | ( |
) | |||||||||||||||||||||||||||||
Commodity contracts |
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Equity contracts |
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Credit default swaps |
- | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||||
Total derivative liabilities |
- | - | - | ( |
) | - | - | ( |
) | |||||||||||||||||||||||||||||||
| (1) | Foreign exchange translation on assets and liabilities held by foreign operations is included in other comprehensive income, net foreign operations. |
| (2) | FVTPL securities includes $ |
| (3) | Changes in unrealized gains (losses) on Trading and FVTPL securities still held on April 30, 2023 are included in earnings for the period. |
| BMO Financial Group Second Quarter Report 2024 73 |
(Canadian $ in millions, except as noted) |
April 30, 2024 |
October 31, 2023 | ||||||
CET1 Capital |
$ |
$ | ||||||
Tier 1 Capital |
||||||||
Total Capital |
||||||||
TLAC |
||||||||
Risk-Weighted Assets |
||||||||
Leverage Exposures |
||||||||
CET1 Ratio |
||||||||
Tier 1 Capital Ratio |
||||||||
Total Capital Ratio |
||||||||
TLAC Ratio |
||||||||
Leverage Ratio |
||||||||
TLAC Leverage Ratio |
||||||||
| (1) | Calculated in accordance with OSFI’s Capital Adequacy Requirements Guideline, Leverage Requirements Guideline and Total Loss Absorbing Capacity (TLAC) Guideline. |
For stock options granted during the six months ended |
April 30, 2024 |
April 30, 2023 | ||||||
Expected dividend yield |
||||||||
Expected share price volatility |
||||||||
Risk-free rate of return |
||||||||
Expected period until exercise (in years) |
||||||||
Exercise price ($) |
||||||||
(Canadian $ in millions) |
||||||||||||||||
| Pension benefit plans | Other employee future benefit plans | |||||||||||||||
For the three months ended |
April 30, 2024 |
April 30, 2023 | April 30, 2024 |
April 30, 2023 | ||||||||||||
Current service cost |
$ |
$ | $ |
$ | ||||||||||||
Net interest (income) expense on net defined benefit (asset) liability |
( |
) |
( |
) | ||||||||||||
Impact of plan amendments |
- | - | ||||||||||||||
Administrative expenses |
- | |||||||||||||||
Benefits expense |
||||||||||||||||
Government pension plans expense (1) |
- | |||||||||||||||
Defined contribution expense |
- | |||||||||||||||
Total pension and other employee future benefit expenses recognized in our Consolidated Statement of Income |
$ |
$ | $ |
$ | ||||||||||||
| (1) | Includes Canada Pension Plan, Quebec Pension Plan and U.S. Federal Insurance Contributions Act. |
74 |
| (Canadian $ in millions) |
||||||||||||||||
| Pension benefit plans | Other employee future benefit plans | |||||||||||||||
| For the six months ended |
April 30, 2024 |
April 30, 2023 | April 30, 2024 |
April 30, 2023 | ||||||||||||
| Current service cost |
$ |
$ | $ |
$ | ||||||||||||
| Net interest (income) expense on net defined benefit (asset) liability |
( |
) |
( |
) | ||||||||||||
| Impact of plan amendments |
( |
) | ( |
) |
- | |||||||||||
| Administrative expenses |
- | |||||||||||||||
| Benefits expense |
( |
) |
||||||||||||||
| Government pension plans expense (1) |
- | |||||||||||||||
| Defined contribution expense |
- | |||||||||||||||
| Total pension and other employee future benefit expenses (recovery) recognized in our Consolidated Statement of Income |
$ |
$ | $ |
( |
) |
$ | ||||||||||
| (1) | Includes Canada Pension Plan, Quebec Pension Plan and U.S. Federal Insurance Contributions Act. |
| (Canadian $ in millions, except as noted) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2024 |
April 30, 2023 |
April 30, 2024 |
April 30, 2023 |
|||||||||||||
| Net income attributable to bank shareholders |
$ |
$ | $ |
$ | ||||||||||||
| Dividends on preferred shares and distributions on other equity instruments |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Net income available to common shareholders |
$ |
$ | $ |
$ | ||||||||||||
| Weighted-average number of common shares outstanding (in thousands) |
||||||||||||||||
| Basic earnings per common share (Canadian $) |
$ |
$ | $ |
$ | ||||||||||||
| (Canadian $ in millions, except as noted) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2024 |
April 30, 2023 |
April 30, 2024 |
April 30, 2023 |
|||||||||||||
| Net income available to common shareholders adjusted for impact of dilutive instruments |
$ |
$ | $ |
$ | ||||||||||||
| Weighted-average number of common shares outstanding (in thousands) |
||||||||||||||||
| Effect of dilutive instruments |
||||||||||||||||
| Stock options potentially exercisable (1) |
||||||||||||||||
| Common shares potentially repurchased |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
| Weighted-average number of diluted common shares outstanding (in thousands) |
||||||||||||||||
| Diluted earnings per common share (Canadian $) |
$ |
$ | $ |
$ | ||||||||||||
| (1) | In computing diluted earnings per share, we excluded average stock options outstanding of |
| BMO Financial Group Second Quarter Report 2024 75 |
| (Canadian $ in millions) |
||||||||||||||||||||||||
| For the three months ended April 30, 2024 |
Canadian P&C |
U.S. P&C |
BMO WM |
BMO CM |
Corporate Services |
Total |
||||||||||||||||||
| Net interest income (2) |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
| Non-interest revenue |
||||||||||||||||||||||||
| Total Revenue |
( |
) |
||||||||||||||||||||||
| Provision for credit losses on impaired loans |
||||||||||||||||||||||||
| Provision for (recovery of) credit losses on performing loans |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||
| Total provision for (recovery of) credit losses |
( |
) |
( |
) |
||||||||||||||||||||
| Depreciation and amortization |
||||||||||||||||||||||||
| Non-interest expense |
||||||||||||||||||||||||
| Income (loss) before taxes and non-controlling interest in subsidiaries |
( |
) |
||||||||||||||||||||||
| Provision for (recovery of) income taxes |
( |
) |
||||||||||||||||||||||
| Reported net income (loss) |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
| Non-controlling interest in subsidiaries |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
| Net income (loss) attributable to bank shareholders |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
| Average assets (3) |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
| For the three months ended April 30, 2023 |
Canadian P&C |
U.S. P&C | BMO WM | BMO CM | Corporate Services (1) |
Total | ||||||||||||||||||
| Net interest income (2) |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Non-interest revenue |
||||||||||||||||||||||||
| Total Revenue |
( |
) | ||||||||||||||||||||||
| Provision for credit losses on impaired loans |
||||||||||||||||||||||||
| Provision for credit losses on performing loans |
||||||||||||||||||||||||
| Total provision for credit losses |
||||||||||||||||||||||||
| Depreciation and amortization |
- | |||||||||||||||||||||||
| Non-interest expense |
||||||||||||||||||||||||
| Income (loss) before taxes |
( |
) | ||||||||||||||||||||||
| Provision for (recovery of) income taxes |
( |
) | ||||||||||||||||||||||
| Reported net income (loss) |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Non-controlling interest in subsidiaries |
$ | - | $ | - | $ | - | $ | - | $ | $ | ||||||||||||||
| Net income (loss) attributable to bank shareholders |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Average assets (3) |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
| (1) | Corporate Services includes Technology and Operations. |
| (2) | Operating groups report on a taxable equivalent basis (teb). Revenue and the provision for income taxes are increased on tax-exempt securities to an equivalent before-tax basis to facilitate comparisons of income between taxable and tax-exempt sources. The offset to the groups’ teb adjustments is reflected in Corporate Services revenue and provision for income taxes. Beginning January 1, 2024, we did not take the deduction for certain Canadian dividends received in BMO CM due to proposed legislation, and as a result, we no longer report this revenue on a teb. |
| (3) | Included within average assets are average earning assets, which are comprised of deposits with other banks, deposits at central banks, securities borrowed or purchased under resale agreements, loans and securities. Total average earning assets for three months ended April 30, 2024 are $ |
76 |
| (Canadian $ in millions) |
||||||||||||||||||||||||
| For the six months ended April 30, 2024 |
Canadian P&C |
U.S. P&C |
BMO WM |
BMO CM |
Corporate Services |
Total |
||||||||||||||||||
| Net interest income (2) |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
| Non-interest revenue |
( |
) |
||||||||||||||||||||||
| Total Revenue |
( |
) |
||||||||||||||||||||||
| Provision for credit losses on impaired loans |
||||||||||||||||||||||||
| Provision for (recovery of) credit losses on performing loans |
( |
) |
( |
) |
( |
) |
||||||||||||||||||
| Total provision for credit losses |
||||||||||||||||||||||||
| Depreciation and amortization |
||||||||||||||||||||||||
| Non-interest expense |
||||||||||||||||||||||||
| Income (loss) before taxes and non-controlling interest in subsidiaries |
( |
) |
||||||||||||||||||||||
| Provision for (recovery of) income taxes |
( |
) |
||||||||||||||||||||||
| Reported net income (loss) |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
| Non-controlling interest in subsidiaries |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
| Net income (loss) attributable to bank shareholders |
$ |
$ |
$ |
$ |
$ |
( |
) |
$ |
||||||||||||||||
| Average assets (3) |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
| For the six months ended April 30, 2023 |
Canadian P&C |
U.S. P&C | BMO WM | BMO CM | Corporate Services (1) |
Total | ||||||||||||||||||
| Net interest income (2) |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Non-interest revenue |
( |
) | ||||||||||||||||||||||
| Total Revenue |
( |
) | ||||||||||||||||||||||
| Provision for (recovery of) credit losses on impaired loans |
( |
) | ||||||||||||||||||||||
| Provision for credit losses on performing loans |
||||||||||||||||||||||||
| Total provision for credit losses |
||||||||||||||||||||||||
| Depreciation and amortization |
- | |||||||||||||||||||||||
| Non-interest expense |
||||||||||||||||||||||||
| Income (loss) before taxes and non-controlling interest in subsidiaries |
( |
) | ||||||||||||||||||||||
| Provision for (recovery of) income taxes |
( |
) | ||||||||||||||||||||||
| Reported net income (loss) |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Non-controlling interest in subsidiaries |
$ | - | $ | - | $ | - | $ | - | $ | $ | ||||||||||||||
| Net income (loss) attributable to bank shareholders |
$ | $ | $ | $ | $ | ( |
) | $ | ||||||||||||||||
| Average assets (3) |
$ | |
$ | |
$ | |
$ | |
$ | |
$ | |
||||||||||||
| (1) | Corporate Services includes Technology and Operations. |
| (2) | Operating groups report on a teb. Revenue and the provision for income taxes are increased on tax-exempt securities to an equivalent before-tax basis to facilitate comparisons of income between taxable and tax-exempt sources. The offset to the groups’ teb adjustments is reflected in Corporate Services revenue and provision for income taxes. Beginning January 1, 2024, we did not take the deduction for certain Canadian dividends received in BMO CM due to proposed legislation, and as a result, we no longer report this revenue on a teb. |
| (3) | Included within average assets are average earning assets, which are comprised of deposits with other banks, deposits at central banks, securities borrowed or purchased under resale agreements, loans and securities. Total average earning assets for six months ended April 30, 2024 are $ |
| BMO Financial Group Second Quarter Report 2024 77 |