| (Unaudited) (Canadian $ in millions, except as noted) |
For the three months ended |
For the six months ended |
||||||||||||||||||
April 30, 2023 |
January 31, 2023 |
April 30, 2022 |
April 30, 2023 |
April 30, 2022 |
||||||||||||||||
| Interest, Dividend and Fee Income |
||||||||||||||||||||
| Loans |
$ |
$ | $ | $ |
$ | |||||||||||||||
| Securities (Notes 2 and 12) |
||||||||||||||||||||
| Deposits with banks |
||||||||||||||||||||
| Interest Expense |
||||||||||||||||||||
| Deposits |
||||||||||||||||||||
| Subordinated debt |
||||||||||||||||||||
| Other liabilities |
||||||||||||||||||||
| Net Interest Income |
||||||||||||||||||||
| Non-Interest Revenue |
||||||||||||||||||||
| Securities commissions and fees |
||||||||||||||||||||
| Deposit and payment service charges |
||||||||||||||||||||
| Trading revenues (Note 12) |
( |
) | ( |
) |
||||||||||||||||
| 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 revenue |
( |
) | ( |
) | ||||||||||||||||
| Share of profit in associates and joint ventures |
||||||||||||||||||||
| Other |
||||||||||||||||||||
| Total Revenue |
||||||||||||||||||||
| Provision for Credit Losses (Notes 3 and 12) |
( |
) | ||||||||||||||||||
| Insurance Claims, Commissions and Changes in Policy Benefit Liabilities |
( |
) | ( |
) | ||||||||||||||||
| 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 $) (Note 9) |
||||||||||||||||||||
| Basic |
$ |
$ | $ | $ |
$ | |||||||||||||||
| Diluted |
||||||||||||||||||||
| Dividends per common share |
||||||||||||||||||||
| BMO Financial Group Second Quarter Report 2023 55 |
| (Unaudited) (Canadian $ in millions) |
For the three months ended |
For the six months ended |
||||||||||||||||||
April 30, 2023 |
January 31, 2023 |
April 30, 2022 |
April 30, 2023 |
April 30, 2022 |
||||||||||||||||
| Net Income |
$ |
$ | |
$ | |
$ |
$ | |||||||||||||
| Other Comprehensive Income (Loss), net of taxes |
||||||||||||||||||||
| Items that may subsequently be reclassified to net income |
||||||||||||||||||||
| Net change in unrealized gains (losses) on fair value through OCI debt securities |
||||||||||||||||||||
| Unrealized gains (losses) on fair value through OCI debt securities arising during the period (1) |
( |
) | ( |
) | ||||||||||||||||
| Reclassification to earnings of (gains) losses 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 (gains) losses on derivatives designated as cash flow hedges during the period (Note 12) (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) |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||||||
| Reclassification to earnings of net losses related to divestitures (6) |
- | |||||||||||||||||||
| ( |
) | ( |
) |
|||||||||||||||||
| Items that will not be reclassified to net income |
||||||||||||||||||||
| Net unrealized gains on fair value through OCI equity securities arising during the period (7) |
- | |||||||||||||||||||
| Net gains (losses) on remeasurement of pension and other employee future benefit plans (8) |
( |
) | ( |
) |
||||||||||||||||
| Net gains (losses) on remeasurement of own credit risk on financial liabilities designated at fair value (9) |
( |
) | ( |
) |
||||||||||||||||
| ( |
) | ( |
) |
|||||||||||||||||
| 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) recovery of $ ( ) million, $(( ) million, $ |
| (2) | Net of income tax provision (recovery) of $ |
| (3) | Net of income tax (provision) recovery of $ ( ) million, $ |
| (4) | Net of income tax provision (recovery) of $ ( ) million, $ |
| (5) | Net of income tax (provision) recovery of $ |
| (6) | Net of income tax (provision) of na , na, na for the three months ended, and na , $ |
| (7) | Net of income tax (provision) of $ |
| (8) | Net of income tax (provision) recovery of $ ( ) million, $ |
| (9) | Net of income tax (provision) recovery of $ ( ) million, $ |
56 |
| (Unaudited) (Canadian $ in millions) |
As at |
|||||||||||
April 30, 2023 |
January 31, 2023 |
October 31, 2022 |
||||||||||
| Assets |
||||||||||||
| Cash and Cash Equivalents |
$ |
$ | |
$ | |
|||||||
| Interest Bearing Deposits with Banks |
||||||||||||
| Securities (Notes 2 and 12) |
||||||||||||
| 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 (Notes 3 and 12) |
||||||||||||
| Residential mortgages |
||||||||||||
| Consumer instalment and other personal |
||||||||||||
| Credit cards |
||||||||||||
| Business and government |
||||||||||||
| Allowance for credit losses (Notes 3 and 12) |
( |
) |
( |
) | ( |
) | ||||||
| Other Assets |
||||||||||||
| Derivative instruments |
||||||||||||
| Customers’ liability under acceptances |
||||||||||||
| Premises and equipment |
||||||||||||
| Goodwill (Note 12) |
||||||||||||
| Intangible assets (Note 12) |
||||||||||||
| Current tax assets |
||||||||||||
| Deferred tax assets |
||||||||||||
| Other |
||||||||||||
| Total Assets |
$ |
$ | $ | |||||||||
| Liabilities and Equity |
||||||||||||
| Deposits (Notes 4 and 12) |
$ |
$ | $ | |||||||||
| Other Liabilities |
||||||||||||
| Derivative instruments |
||||||||||||
| Acceptances |
||||||||||||
| Securities sold but not yet purchased |
||||||||||||
| Securities lent or sold under repurchase agreements |
||||||||||||
| Securitization and structured entities’ liabilities |
||||||||||||
| 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 |
$ |
$ | $ | |||||||||
| BMO Financial Group Second Quarter Report 2023 57 |
(Unaudited) (Canadian $ in millions) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2023 |
April 30, 2022 |
April 30, 2023 |
April 30, 2022 |
|||||||||||||
Preferred Shares and Other Equity Instruments (Note 5) |
||||||||||||||||
Balance at beginning of period |
$ |
$ | |
$ |
$ | |
||||||||||
Issued during the period |
- |
|||||||||||||||
Redeemed during the period |
( |
) | ( |
) | ||||||||||||
Balance at End of Period |
||||||||||||||||
Common Shares (Note 5) |
||||||||||||||||
Balance at beginning of period |
||||||||||||||||
Issued under the Shareholder Dividend Reinvestment and Share Purchase Plan |
||||||||||||||||
Issued under the Stock Option Plan |
||||||||||||||||
Repurchased for cancellation and/or treasury shares sold/purchased |
( |
) |
( |
) | ( |
) | ||||||||||
Issued to align capital position with increased regulatory requirements as announced by OSFI (Note 5) |
- | - | ||||||||||||||
Issued for acquisitions (Notes 5 and 12) |
||||||||||||||||
Balance at End of Period |
||||||||||||||||
Contributed Surplus |
||||||||||||||||
Balance at beginning of period |
||||||||||||||||
Stock option expense, net of options exercised |
( |
) |
- | |||||||||||||
Other |
( |
) |
( |
) | - | |||||||||||
Balance at End of Period |
||||||||||||||||
Retained Earnings |
||||||||||||||||
Balance at beginning of period |
||||||||||||||||
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 (losses) 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) losses 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 (gains) losses on derivatives designated as cash flow hedges during the period (Note 12) |
( |
) | ( |
) | ||||||||||||
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 on translation of net foreign operations |
||||||||||||||||
Unrealized (losses) on hedges of net foreign operations |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Reclassification to earnings of net losses related to divestitures |
||||||||||||||||
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 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 (Note 12) |
- | - | ||||||||||||||
Net income attributable to non-controlling interest |
- | - | ||||||||||||||
Balance at End of Period |
- | - | ||||||||||||||
Total Equity |
$ |
$ | $ |
$ | ||||||||||||
5 8 |
(Unaudited) (Canadian $ in millions, except as noted) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2023 |
April 30, 2022 |
April 30, 2023 |
April 30, 2022 |
|||||||||||||
Cash Flows from Operating Activities |
||||||||||||||||
Net Income |
$ |
$ | $ |
$ | ||||||||||||
Adjustments to determine net cash flows provided by (used in) operating activities: |
||||||||||||||||
Securities (gains), other than trading (Note 2) |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Depreciation of premises and equipment |
||||||||||||||||
Depreciation of other assets |
||||||||||||||||
Amortization of intangible assets |
||||||||||||||||
Provision for (recovery of) credit losses (Note 3) |
( |
) | ||||||||||||||
Deferred taxes |
( |
) |
( |
) |
||||||||||||
Net loss on divestitures |
||||||||||||||||
Changes in operating assets and liabilities: |
||||||||||||||||
Net (increase) decrease in trading securities |
( |
) |
( |
) |
||||||||||||
Change in derivative instruments – (increase) decrease in derivative asset |
( |
) | ( |
) | ||||||||||||
– increase (decrease) in derivative liability |
( |
) |
( |
) |
||||||||||||
Net (increase) decrease in current tax asset |
( |
) |
( |
) |
||||||||||||
Net (decrease) in current tax liability |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Change in accrued interest – (increase) in interest receivable |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
– increase in interest payable |
||||||||||||||||
Changes in other items and accruals, net |
( |
) | ( |
) | ||||||||||||
Net increase (decrease) in deposits |
( |
) |
||||||||||||||
Net (increase) in loans |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Net increase (decrease) in securities sold but not yet purchased |
( |
) |
||||||||||||||
Net (decrease) in securities lent or sold under repurchase agreements |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Net (increase) decrease in securities borrowed or purchased under resale agreements |
( |
) |
||||||||||||||
Net (decrease) in 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 subordinated debt |
||||||||||||||||
Proceeds from issuance of preferred shares, net of issuance costs (Note 5) |
||||||||||||||||
Redemption of preferred shares (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 |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Repayment of lease liabilities |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Net Cash Provided by 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) (Note 12) |
( |
) |
( |
) |
||||||||||||
Net proceeds from divestitures |
||||||||||||||||
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 $million cash and cash equivalents acquired as part of the acquisitions. To mitigate changes in the Canadian dollar equivalent of the purchase price on close, we entered into forward contracts, which qualified for hedge accounting. |
| (2) | Includes dividends paid on securities sold but not yet purchased. |
| BMO Financial Group Second Quarter Report 2023 5 9 |
60 |
BMO Financial Group Second Quarter Report 2023 61 |
(Canadian $ in millions) |
April 30, 2023 |
October 31, 2022 |
||||||||||||||
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, MBS refers to mortgage-backed securities and CMO refers to collateralized mortgage obligations. |
(Canadian $ in millions) |
April 30, 2023 |
October 31, 2022 |
||||||||||||||||||||||||||||||
Cost/ Amortized cost |
Gross unrealized gains |
Gross unrealized losses |
Fair value |
Cost/ 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, 2023 |
April 30, 2022 |
April 30, 2023 |
April 30, 2022 |
|||||||||||||
FVOCI |
||||||||||||||||
Amortized cost |
||||||||||||||||
Total |
||||||||||||||||
(Canadian $ in millions) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2023 |
April 30, 2022 |
April 30, 2023 |
April 30, 2022 |
|||||||||||||
FVTPL securities |
||||||||||||||||
FVOCI securities - realized gains (losses) (1) |
( |
) | ||||||||||||||
Impairment loss |
( |
) |
||||||||||||||
Securities gains, other than trading |
||||||||||||||||
(1) |
Gains (losses) are net of (losses) gains on hedge contracts. |
• |
Interest and dividend income of $ , respectively ($million for the three and six months ended April 30, 2022, respectively). Interest income is calculated using the effective interest method; |
• |
Gains (losses) from securities designated as FVTPL of $ million for the three and six months ended April 30, 2022, respectively); and |
• |
Realized gains from FVOCI securities were $ |
62 |
(Canadian $ in millions) |
April 30, 2023 |
|||
Total |
||||
Unpaid principal balance (1) |
||||
Fair value adjustment |
( |
) | ||
Carrying value |
||||
Stage 3 allowance |
||||
Carrying value net of related allowance |
||||
(1) |
Excludes loans that were fully written off prior to acquisition date. |
BMO Financial Group Second Quarter Report 2023 63 |
(Canadian $ in millions) |
April 30, 2023 |
October 31, 2022 |
||||||||||||||||||||||||||||||
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Stage 1 |
Stage 2 |
Stage 3 |
Total |
|||||||||||||||||||||||||
Loans: Residential mortgages |
||||||||||||||||||||||||||||||||
Exceptionally low |
- |
- | - | |||||||||||||||||||||||||||||
Very low |
- |
- | ||||||||||||||||||||||||||||||
Low |
- |
- | ||||||||||||||||||||||||||||||
Medium |
- |
- | ||||||||||||||||||||||||||||||
High |
- |
- | ||||||||||||||||||||||||||||||
Not rated (2) |
- |
- | ||||||||||||||||||||||||||||||
Impaired |
- |
- |
- | - | ||||||||||||||||||||||||||||
Gross residential mortgages |
||||||||||||||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
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 |
||||||||||||||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
Carrying amount |
||||||||||||||||||||||||||||||||
Loans: Credit cards |
||||||||||||||||||||||||||||||||
Exceptionally low |
- |
- |
- | - | ||||||||||||||||||||||||||||
Very low |
- |
- |
- | |||||||||||||||||||||||||||||
Low |
- |
- | ||||||||||||||||||||||||||||||
Medium |
- |
- | ||||||||||||||||||||||||||||||
High |
- |
- | ||||||||||||||||||||||||||||||
Not rated (2) |
- |
- | ||||||||||||||||||||||||||||||
Impaired |
- |
- |
- |
- | - | - | - | |||||||||||||||||||||||||
Gross credit cards |
- |
- | ||||||||||||||||||||||||||||||
Allowance for credit losses |
- |
- | ||||||||||||||||||||||||||||||
Carrying amount |
- |
- | ||||||||||||||||||||||||||||||
Loans: Business and government |
||||||||||||||||||||||||||||||||
Acceptable |
||||||||||||||||||||||||||||||||
Investment grade |
- |
- | ||||||||||||||||||||||||||||||
Sub-investment grade |
- |
- | ||||||||||||||||||||||||||||||
Watchlist |
- |
- | - | |||||||||||||||||||||||||||||
Impaired |
- |
- |
- | - | ||||||||||||||||||||||||||||
Gross business and government |
||||||||||||||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
Carrying amount |
||||||||||||||||||||||||||||||||
Gross total loans and acceptances |
||||||||||||||||||||||||||||||||
Net total loans and acceptances |
||||||||||||||||||||||||||||||||
Commitments and financial guarantee contracts |
||||||||||||||||||||||||||||||||
Acceptable |
||||||||||||||||||||||||||||||||
Investment grade |
- |
- | ||||||||||||||||||||||||||||||
Sub-investment grade |
- |
- | ||||||||||||||||||||||||||||||
Watchlist |
- |
- | ||||||||||||||||||||||||||||||
Impaired |
- |
- |
- | - | ||||||||||||||||||||||||||||
Gross commitments and financial guarantee contracts |
||||||||||||||||||||||||||||||||
Allowance for credit losses |
||||||||||||||||||||||||||||||||
Carrying amount (5)(6) |
||||||||||||||||||||||||||||||||
| (1) | Includes Bank of PCI loans. As at April 30, 2023, PCI loan balances were $the W est |
(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 the 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. |
6 4 |
BMO Financial Group Second Quarter Report 2023 65 |
(Canadian $ in millions) |
||||||||||||||||||||||||||||||||
For the three months ended |
April 30, 2023 |
April 30, 2022 |
||||||||||||||||||||||||||||||
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 Provision for Credit Losses (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 |
||||||||||||||||||||||||||||||||
Comprised of: Loans |
||||||||||||||||||||||||||||||||
Other credit instruments (4) |
||||||||||||||||||||||||||||||||
| (1) | Includes changes in the allowance for PCI loans of $( |
| (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. |
66 |
(Canadian $ in millions) |
||||||||||||||||||||||||||||||||
For the six months ended |
April 30, 2023 |
April 30, 2022 |
||||||||||||||||||||||||||||||
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 Provision for Credit Losses (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 |
||||||||||||||||||||||||||||||||
Comprised of: Loans |
||||||||||||||||||||||||||||||||
Other credit instruments (4) |
||||||||||||||||||||||||||||||||
| (1) | Includes changes in the allowance for PCI loans of $( |
| (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 2023 67 |
| (Canadian $ in millions) |
April 30, 2023 |
October 31, 2022 |
||||||||||||||||||||||||||||||
Gross amount |
Allowance for credit losses on impaired loans |
Allowance for credit losses on performing loans |
Net amount |
Gross amount |
Allowance for credit losses on impaired loans (2) |
Allowance for credit losses on performing loans (3) |
Net amount |
|||||||||||||||||||||||||
| By geographic region (1): |
||||||||||||||||||||||||||||||||
| Canada |
||||||||||||||||||||||||||||||||
| United States |
||||||||||||||||||||||||||||||||
| Other countries |
||||||||||||||||||||||||||||||||
| Total |
||||||||||||||||||||||||||||||||
(1) |
Geographic region is based upon the country of ultimate risk. |
| (2) | Excludes allowance for credit losses on impaired loans of $ |
| (3) | Excludes allowance for credit losses on performing loans of $ |
| (Canadian $ in millions) |
April 30, 2023 |
October 31, 2022 |
||||||||||||||||||||||
Gross impaired amount |
Allowance for credit losses on impaired loans |
Net impaired amount |
Gross impaired amount |
Allowance for credit losses on impaired loans (3) |
Net impaired amount |
|||||||||||||||||||
| Residential mortgages |
||||||||||||||||||||||||
| Consumer instalment and other personal |
||||||||||||||||||||||||
| Business and government (1) |
||||||||||||||||||||||||
| Total |
||||||||||||||||||||||||
| By geographic region (2): |
||||||||||||||||||||||||
| Canada |
||||||||||||||||||||||||
| United States |
||||||||||||||||||||||||
| Other countries |
||||||||||||||||||||||||
| Total |
||||||||||||||||||||||||
| (1) | Includes customers’ liability under acceptances. |
| (2) | Geographic region is based upon the country of ultimate risk. |
| (3) | Excludes allowance for credit losses on impaired loans of $ |
| (Canadian $ in millions) |
April 30, 2023 |
October 31, 2022 |
||||||||||||||||||||||
30 to 89 days |
90 days or more |
Total |
30 to 89 days |
90 days or more |
Total |
|||||||||||||||||||
| Residential mortgages |
||||||||||||||||||||||||
| Credit card, consumer instalment and other personal |
||||||||||||||||||||||||
| Business and government |
||||||||||||||||||||||||
| Total |
||||||||||||||||||||||||
6 8 |
As at April 30, 2023 |
As at October 31, 2022 |
|||||||||||||||||||||||||||||||||||||||||||||||||
| All figures are average annual values |
Benign scenario |
Base scenario |
Adverse scenario |
Benign scenario |
Base scenario |
Adverse scenario |
||||||||||||||||||||||||||||||||||||||||||||
First 12 Months |
Remaining horizon |
First 12 Months |
Remaining horizon |
First 12 Months |
Remaining horizon |
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 and housing price index are averages of quarterly year-over-year growth rates. |
| (3) | In Canada, we use the HPI Benchmark Composite. |
| (4) | In the United States, we use the National Case-Shiller House Price Index. |
Payable on demand |
||||||||||||||||||||||||
| (Canadian $ in millions) |
Interest bearing |
Non-interest bearing |
Payable after notice |
Payable on a fixed date |
April 30, 2023 |
October 31, 2022 |
||||||||||||||||||
| Deposits by: |
||||||||||||||||||||||||
| Banks (1) |
||||||||||||||||||||||||
| Business and government |
||||||||||||||||||||||||
| Individuals |
||||||||||||||||||||||||
| Total (4) |
||||||||||||||||||||||||
| Booked in: |
||||||||||||||||||||||||
| Canada |
||||||||||||||||||||||||
| United States |
||||||||||||||||||||||||
| Other countries |
||||||||||||||||||||||||
| Total |
||||||||||||||||||||||||
| (1) | Includes regulated and central banks. |
| (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 $ |
BMO Financial Group Second Quarter Report 2023 6 9 |
| (Canadian $ in millions) |
Canada |
United States |
Other |
Total |
||||||||||||
| As at April 30, 2023 |
||||||||||||||||
| As at October 31, 2022 |
||||||||||||||||
| (Canadian $ in millions) |
Less than 3 months |
3 to 6 months |
6 to 12 months |
Over 12 months |
Total |
|||||||||||||||
| As at April 30, 2023 |
||||||||||||||||||||
| As at October 31, 2022 |
||||||||||||||||||||
| (Canadian $ in millions, except as noted) |
April 30, 2023 |
October 31, 2022 |
||||||||||||||||||||||||||||||
Number of shares |
Amount |
Dividends declared per share |
Number of shares |
Amount |
Dividends declared per share (6) |
Convertible into |
||||||||||||||||||||||||||
| Preferred Shares - Classified as Equity |
||||||||||||||||||||||||||||||||
| Class B – Series 27 |
(2)(3) | |||||||||||||||||||||||||||||||
| Class B – Series 29 |
(2)(3) | |||||||||||||||||||||||||||||||
| Class B – Series 31 |
(2)(3) | |||||||||||||||||||||||||||||||
| Class B – Series 33 |
(2)(3) | |||||||||||||||||||||||||||||||
| Class B – Series 44 |
(2)(3) | |||||||||||||||||||||||||||||||
| Class B – Series 46 |
(2)(3) | |||||||||||||||||||||||||||||||
| Class B – Series 50 |
(3) | |||||||||||||||||||||||||||||||
| Class B – Series 52 (1 2 ) |
- | - | - | (3) | ||||||||||||||||||||||||||||
| Preferred Shares - Classified as Equity |
||||||||||||||||||||||||||||||||
Recourse to |
||||||||||||||||||||||||||||||||
| Other Equity Instruments |
||||||||||||||||||||||||||||||||
| 4.800% Additional Tier 1 Capital Notes (AT1 Notes) |
- | (3)(5) | ||||||||||||||||||||||||||||||
| 4.300% Limited Recourse Capital Notes, Series 1 (Series 1 LRCNs) |
|
(3)(4)(5) | ||||||||||||||||||||||||||||||
| 5.625% Limited Recourse Capital Notes, Series 2 (Series 2 LRCNs) |
|
(3)(4)(5) | ||||||||||||||||||||||||||||||
| 7.325% Limited Recourse Capital Notes, Series 3 (Series 3 LRCNs) |
|
(3)(4)(5) | ||||||||||||||||||||||||||||||
| Other Equity Instruments |
||||||||||||||||||||||||||||||||
| Preferred Shares and Other Equity Instruments |
||||||||||||||||||||||||||||||||
| Common Shares |
||||||||||||||||||||||||||||||||
(1) |
For additional information refer to Notes 16 and 20 of our annual consolidated financial statements for the year ended October 31, 2022. |
(2) |
If converted, the holders have the option to convert back to the original preferred shares on subsequent redemption dates, subject to certain conditions. |
(3) |
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 and Preferred Shares Series 51 (collectively, the LRCN Preferred Shares) for Series 1, Series 2 and Series 3 LRCNs (collectively, the LRCNs), respectively, to qualify as regulatory capital under Basel III, (see (4) below). 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 $ |
(4) |
Non-deferrable interest is payable semi-annually on the 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. |
(5) |
The rates represent the annual interest rate percentage applicable to the notes issued as at the reporting date. |
(6) |
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. |
(7) |
The stock options issued under the Stock Option Plan are convertible into |
(8) |
During the three and six months ended April 30, 2023, we issued |
(9) |
Common shares are net of |
(10) |
On December 1, 2022, we issued |
(11) |
On December 16, 2022, we issued |
(12) |
On January 31, 2023, we issued Class B - Series 52 Preferred Shares for $ |
70 |
| (Canadian $ in millions) |
April 30, 2023 |
October 31, 2022 |
||||||||||||||
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 |
||||||||||||||||
| Securitization and structured entities’ liabilities |
||||||||||||||||
| Other liabilities |
||||||||||||||||
| Subordinated debt |
||||||||||||||||
| (1) | Carrying value is net of allowances for credit losses. |
| (2) | Excludes $ |
| (3) | Excludes $ |
| (4) | Excludes $ |
| (5) | Other liabilities include certain other liabilities of subsidiaries, other than deposits. |
BMO Financial Group Second Quarter Report 2023 71 |
72 |
| (Canadian $ in millions) |
April 30, 2023 |
October 31, 2022 |
||||||||||||||||||||||||||||||
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 |
||||||||||||||||||||||||||||||||
| Securities sold but not yet purchased |
- |
- | ||||||||||||||||||||||||||||||
| Structured note liabilities (2) |
- |
- |
- | - | ||||||||||||||||||||||||||||
| Structured deposits (3) |
- |
- |
- | - | ||||||||||||||||||||||||||||
| 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 in our insurance business, certain receivables and other items measured at fair value. |
| (2) | These structured note liabilities included in deposits have been designated at FVTPL. |
| (3) | This represents 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, certain payables and metals deposits that have been designated at FVTPL as well as certain securitization and structured entities’ liabilities measured at FVTPL |
| BMO Financial Group Second Quarter Report 2023 73 |
Range of input values |
||||||||||||||||||||
As at April 30, 2023 (Canadian $ in millions, except as noted) |
Reporting line in fair value hierarchy table |
Fair value of assets |
Valuation techniques |
Significant unobservable inputs |
Low |
High |
||||||||||||||
Private equity (2) |
Corporate equity | Net asset value | Net asset value | na |
na |
|||||||||||||||
| EV/EBITDA | Multiple | |||||||||||||||||||
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 (3) | ( |
||||||||||||||||||
| (1) |
| (2) |
| (3) |
(Canadian $ in millions) |
||||||||||||||||
For the three months ended |
April 30, 2023 |
April 30, 2022 |
||||||||||||||
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, 2023 |
April 30, 2022 |
||||||||||||||
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 |
||||||||||||||||
74 |
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 |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||||
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 |
- |
- |
- |
- |
( |
) |
- |
- |
- |
- |
||||||||||||||||||||||||||||||
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 unrealized gains (losses) recorded in income for instruments still held |
||||||||||||||||||||||||||||||
Trading Securities |
||||||||||||||||||||||||||||||||||||||||
NHA MBS and U.S. agency MBS and CMO |
( |
) |
( |
) |
( |
) |
- |
( |
) |
( |
) | |||||||||||||||||||||||||||||
Corporate debt |
- |
- |
- |
- |
( |
) |
- |
|||||||||||||||||||||||||||||||||
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 |
- | - |
- |
- |
( |
) |
- |
- |
- |
( |
) | |||||||||||||||||||||||||||||
Credit default swaps |
- |
- |
- |
- |
- |
- |
||||||||||||||||||||||||||||||||||
Total derivative liabilities |
- |
- |
- |
( |
) |
- |
- |
( |
) | |||||||||||||||||||||||||||||||
| (1) |
| (2) |
(3) |
| BMO Financial Group Second Quarter Report 2023 7 5 |
Change in fair value |
Movements |
Transfers |
||||||||||||||||||||||||||||||||||||||
For the three months ended April 30, 2022 (Canadian $ in millions) |
Balance January 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, 2022 |
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 |
( |
) | - | ( |
) | - | - | ( |
) | - | ||||||||||||||||||||||||||||||
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 |
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Credit default swaps |
- | - | - | - | - | - | ( |
) | - | |||||||||||||||||||||||||||||||
Total derivative liabilities |
- | - | - | - | - | - | ( |
) | - | |||||||||||||||||||||||||||||||
Change in fair value |
Movements |
Transfers |
||||||||||||||||||||||||||||||||||||||
For the six months ended April 30, 2022 (Canadian $ in millions) |
Balance October 31, 2021 |
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, 2022 |
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 |
( |
) | ( |
) | ( |
) | - | - | ( |
) | ( |
) | ||||||||||||||||||||||||||||
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 |
- | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
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) | uded i n earnings for the period. |
76 |
(Canadian $ in millions, except as noted) |
April 30, 2023 |
October 31, 2022 |
||||||
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 Guideline. |
For stock options granted during the six months ended |
April 30, 2023 |
April 30, 2022 |
||||||
Expected dividend yield |
||||||||
Expected share price volatility |
||||||||
Risk-free rate of return |
||||||||
Expected period until exercise (in years) |
||||||||
Exercise price ($) |
||||||||
| BMO Financial Group Second Quarter Report 2023 77 |
| (Canadian $ in millions) |
||||||||||||||||
| Pension benefit plans | Other employee future benefit plans | |||||||||||||||
| For the three months ended |
April 30, 2023 |
April 30, 2022 | April 30, 2023 |
April 30, 2022 | ||||||||||||
| Current service cost |
||||||||||||||||
| Net interest (income) expense on net defined benefit (asset) liability |
( |
) |
( |
) | ||||||||||||
| Past service cost (income) |
- |
- | - |
- | ||||||||||||
| Gain on settlement |
- |
- | - |
- | ||||||||||||
| Administrative expenses |
- |
- | ||||||||||||||
| Benefits expense |
||||||||||||||||
| Government pension plans expense (1) |
- |
- | ||||||||||||||
| Defined contribution expense |
- |
- | ||||||||||||||
| Total pension and other employee future benefit expenses recognized in the Consolidated Statement of Income |
||||||||||||||||
| (Canadian $ in millions) |
||||||||||||||||
| Pension benefit plans | Other employee future benefit plans | |||||||||||||||
| For the six months ended |
April 30, 2023 |
April 30, 2022 | April 30, 2023 |
April 30, 2022 | ||||||||||||
| Current service cost |
||||||||||||||||
| Net interest (income) expense on net defined benefit (asset) liability |
( |
) |
( |
) | ||||||||||||
| Past service cost (income) |
( |
) |
- | - |
- | |||||||||||
| Gain on settlement |
- |
( |
) | - |
- | |||||||||||
| Administrative expenses |
- |
- | ||||||||||||||
| Benefits expense |
||||||||||||||||
| Government pension plans expense (1) |
- |
- | ||||||||||||||
| Defined contribution expense |
- |
- | ||||||||||||||
| Total pension and other employee future benefit expenses recognized in the 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, 2023 |
April 30, 2022 |
April 30, 2023 |
April 30, 2022 |
|||||||||||||
| 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, 2023 |
April 30, 2022 |
April 30, 2023 |
April 30, 2022 |
|||||||||||||
| 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 with a weighted-average exercise price of $ |
7 8 |
| (Canadian $ in millions) |
||||||||||||||||||||||||
| 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 |
||||||||||||||||||||||||
| Provision for credit losses on performing loans |
||||||||||||||||||||||||
| Total provision for credit losses |
||||||||||||||||||||||||
| Insurance claims, commissions and changes in policy benefit liabilities |
||||||||||||||||||||||||
| 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, 2022 |
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 (recovery of) credit losses on performing loans |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
| Total provision for (recovery of) credit losses |
( |
) | ||||||||||||||||||||||
| Insurance claims, commissions and changes in policy benefit liabilities |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||
| Depreciation and amortization |
- | |||||||||||||||||||||||
| Non-interest expense |
||||||||||||||||||||||||
| Income before taxes |
||||||||||||||||||||||||
| Provision for income taxes |
||||||||||||||||||||||||
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Average assets (3) |
||||||||||||||||||||||||
| BMO Financial Group Second Quarter Report 2023 7 9 |
| (Canadian $ in millions) |
||||||||||||||||||||||||
| 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 |
||||||||||||||||||||||||
| Insurance claims, commissions and changes in policy benefit liabilities |
- |
- |
- |
- |
||||||||||||||||||||
| 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, 2022 |
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 (recovery of) credit losses on performing loans |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
| Total provision for (recovery of) credit losses |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
| Insurance claims, commissions and changes in policy benefit liabilities |
- | - | ( |
) | - | - | ( |
) | ||||||||||||||||
| Depreciation and amortization |
- | |||||||||||||||||||||||
| Non-interest expense |
||||||||||||||||||||||||
| Income before taxes |
||||||||||||||||||||||||
| Provision for income taxes |
||||||||||||||||||||||||
| Reported net income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| 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. |
| (3) | Included within average assets are average earning assets, which are comprised of deposits with other banks, deposits at central banks, reverse repos, loans and securities. Total average earning assets for three and six months ended April 30, 2023 are $ million and $ |
80 |
| (Canadian $ in millions) |
||||
February 1, 2023 |
||||
| Purchase consideration |
||||
| Impact of forward contracts (1) |
( |
) | ||
| Net purchase consideration |
||||
| Fair value of identifiable assets acquired |
||||
| Securities |
||||
| Loans |
||||
| Residential mortgages |
||||
| Consumer installment and other personal |
||||
| Credit card |
||||
| Business and government |
||||
| Total loans |
||||
| Other assets (2) |
||||
| Intangible assets |
||||
| Total fair value of identifiable assets acquired |
||||
| Fair value of liabilities assumed |
|
|
|
|
| Deposits |
||||
| Other liabilities (2) |
||||
| Total fair value of identifiable liabilities assumed |
||||
| Non-controlling interest |
||||
| Goodwill |
||||
| Net purchase consideration |
||||
(1) |
To mitigate changes in the Canadian dollar equivalent of the purchase price between announcement and close, we entered into forward contracts, which qualified for hedge accounting. Changes in the fair value of these forward contracts of $ |
(2) |
The net deferred tax asset recorded in the opening balance sheet is $ |
BMO Financial Group Second Quarter Report 2023 81 |
| (Canadian $ in millions) |
||||
December 1, 2022 |
||||
| Goodwill and intangible assets |
||||
| Other assets |
||||
| Total assets |
||||
| Liabilities |
||||
| Purchase price |
||||
82 |