Operating momentum helps drive performance
BMO Financial Group announced net income of $2.275 billion, or $3.41 per share, on a reported basis for the third quarter ending July 31, representing an annual increase of 85%.
On an adjusted basis, the bank’s net income grew by 82% year over year to reach $2.292 billion, or $3.44 per share.
The bank also reported recovery of credit losses of $70 million, versus provisions for credit losses amounting to $1.054 billion.
Return on equity surged from 9.4% to 17.5%, while adjusted ROE went up from 9.6% to 17.6%. BMO’s Common Equity Tier 1 Ratio was at 13.4%, compared to 11.6% in Q3 2020.
“Operating momentum across our diversified businesses continues to drive strong financial performance. We recorded third quarter adjusted earnings per share of $3.44, with strong pre-provision pre-tax earnings of $2.9 billion, up 12% year-over-year, driven by revenue growth of 10%,” said Darryl White, CEO of BMO Financial Group.
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Year to date, BMO’s reported net income had a 59% annual gain to $5.595 billion, while adjusted net income increased by 79% to $6.425 billion. Return on equity went up from 9.3% to 14.5%, while adjusted ROE rose from 9.5% to 16.7%.
“Our consistent financial performance enables us to deliver on our vision for a sustainable future,” White added. “This quarter, we continued to advance our work to address the impact of climate change and champion inclusivity, and made a long-term pledge to supporting the development of affordable housing.
“With the economic recovery continuing to take hold, and as communities adapt to the most recent pandemic developments, we are committed to helping our clients make real financial progress and supporting their growth ambitions.”
