• January 05, 2018
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BMO Financial Group releases 2017 Q4 financial results

For the fourth quarter ended October 31, 2017, BMO Financial Group recorded net income of $1,227 million or $1.81 per share on a reported basis, and net income of $1,309 million or $1.94 per share on an adjusted basis.

“BMO finished the year with strong performance, delivering record annual adjusted earnings of $5.5 billion, up 10% from last year, and earnings per share of $8.16. Earnings growth reflects the benefit of our diversified business mix, including continued momentum in the U.S. segment, which has achieved 13% compound growth over the last two years on a U.S dollar basis, contributing 25% or $1.4 billion to bank earnings,” said Darryl White, Chief Executive Officer, BMO Financial Group.

“We are making good progress against our financial and strategic objectives. In 2017, we delivered positive adjusted net operating leverage of 1.9% building on the 2.1% achieved last year and leading to an improvement in the adjusted net efficiency ratio of 240 bps since 2015. We did so while investing more in digital capabilities, providing customers with innovative products and services. We improved the CET 1 Ratio to 11.4% and, at the same time, grew our business and returned earningsto our shareholders through higher dividends and share buybacks.

“We start 2018 from a position of strength, with diversified and competitively advantaged businesses, a team of highly engaged, customer-focused employees and a solid technology and data foundation. I am confident that we will build on these core capabilities to accelerate growth, improve efficiency and drive customer loyalty. We are well-positioned to capture the opportunities in an evolving market environment and deliver sustainable profitability going forward,” concluded Mr. White

Net income in the fourth quarter of 2017 included elevated reinsurance claims of $112 million resulting largely from the impact of hurricanes Irma, Maria and Harvey, which reduced net income growth by approximately 8%. The weaker U.S. dollar reduced net income growth by 1%. Reported results included a $41 million after-tax restructuring charge as we continue to accelerate the use of technology to enhance customer experience and focus on driving operational efficiencies.

Concurrent with the release of results, BMO announced a first quarter 2018 dividend of $0.93 per common share, up $0.03 per share and 3% from the preceding quarter and up $0.05 per share and 6% from a year ago. The quarterly dividend of $0.93 per common share is equivalent to an annual dividend of $3.72 per common share.

Return on tangible common equity (ROTCE) was 14.8% compared with 17.2 % in the prior year, and adjusted ROTCE was 15.5% compared with 17.5%.

Re-disseminated by The Asian Banker