BMO Financial Group Reports Fourth Quarter and Fiscal 2021 Results
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Fourth Quarter 2021 Earnings Release
BMO's 2021 audited annual consolidated financial statements and accompanying Management Discussion and Analysis (MD&A) are available online at www.bmo.com/investorrelations and at www.sedar.com.
Financial Results Highlights
Fourth Quarter 2021 Compared With Fourth Quarter 2020:
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Net income of $2,159 million, an increase of 36%; adjusted net income1 of $2,226 million, an increase of 38%
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Reported earnings per share (EPS)2 of $3.23, an increase of 36%; adjusted EPS1,2 of $3.33, an increase of 38%
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Recovery of the provision for credit losses of $126 million, compared with a provision for credit losses of $432 million
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Return on equity (ROE) of 16.0%, an increase from 12.4%; adjusted ROE1 of 16.5%, an increase from 12.6%
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Common Equity Tier 1 Ratio3 of 13.7%, an increase from 11.9%
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Dividend of $1.33, an increase of $0.27 or 25%
Fiscal 2021 Compared With Fiscal 2020:
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Net income of $7,754 million, an increase of 52%; adjusted net income1 of $8,651 million, an increase of 66%
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Reported EPS2 of $11.58, an increase of 53%; adjusted EPS1,2 of $12.96, an increase of 68%
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Provision for credit losses of $20 million, compared with $2,953 million
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ROE of 14.9%, an increase from 10.1%; adjusted ROE1 of 16.7%, an increase from 10.3%
TORONTO, Dec. 3, 2021 /CNW/ - For the fourth quarter ended October 31, 2021, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $2,159 million or $3.23 per share on a reported basis, and net income of $2,226 million or $3.33 per share on an adjusted basis.
"We delivered another quarter of strong performance with positive operating leverage in each of our diversified businesses, contributing to strong earnings for fiscal 2021. This year, we significantly advanced our strategy to build a digitally-enabled, future-ready bank, underpinned by our Purpose and a winning culture. We've taken action to improve our competitive position through a disciplined approach to expense management, capital allocation and investment in future growth, while meaningfully improving our efficiency ratio and return on equity over the last several years," said Darryl White, Chief Executive Officer, BMO Financial Group.
"Strong, consistent financial performance enables us to continue to invest in improving the well-being of our employees, customers and communities. We continue to be recognized as a global leader in sustainability as one of only five Canadian companies included in the Dow Jones Sustainability World Index – a confirmation of the progress we're making on our bold commitments for a thriving economy, a sustainable future and an inclusive society. We will continue to act as a catalyst for positive change, including serving as our clients' lead partner in the transition to a net zero world."
"Looking ahead to 2022, we will continue to position BMO for growth with the ensuing economic recovery. We are making targeted investments in technology and talent to drive enhanced customer experiences and deliver market-leading advice to help them make real financial progress. Today we announced a 25% dividend increase and our intention to repurchase up to 22.5 million shares, reflecting the strength of our capital position and confidence in delivering sustained, long-term performance for our shareholders," concluded Mr. White.
Concurrent with the release of results, BMO announced a first quarter 2022 dividend of $1.33 per common share, an increase of $0.27 or 25% from the prior quarter and the prior year. The quarterly dividend of $1.33 per common share is equivalent to an annual dividend of $5.32 per common share.
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Fourth Quarter 2021 Earnings Release
BMO's 2021 audited annual consolidated financial statements and accompanying Management Discussion and Analysis (MD&A) are available online at www.bmo.com/investorrelations and at www.sedar.com.
Financial Results Highlights
Fourth Quarter 2021 Compared With Fourth Quarter 2020:
-
Net income of $2,159 million, an increase of 36%; adjusted net income1 of $2,226 million, an increase of 38%
-
Reported earnings per share (EPS)2 of $3.23, an increase of 36%; adjusted EPS1,2 of $3.33, an increase of 38%
-
Recovery of the provision for credit losses of $126 million, compared with a provision for credit losses of $432 million
-
Return on equity (ROE) of 16.0%, an increase from 12.4%; adjusted ROE1 of 16.5%, an increase from 12.6%
-
Common Equity Tier 1 Ratio3 of 13.7%, an increase from 11.9%
-
Dividend of $1.33, an increase of $0.27 or 25%
Fiscal 2021 Compared With Fiscal 2020:
-
Net income of $7,754 million, an increase of 52%; adjusted net income1 of $8,651 million, an increase of 66%
-
Reported EPS2 of $11.58, an increase of 53%; adjusted EPS1,2 of $12.96, an increase of 68%
-
Provision for credit losses of $20 million, compared with $2,953 million
-
ROE of 14.9%, an increase from 10.1%; adjusted ROE1 of 16.7%, an increase from 10.3%
TORONTO, Dec. 3, 2021 /CNW/ - For the fourth quarter ended October 31, 2021, BMO Financial Group (TSX: BMO) (NYSE: BMO) recorded net income of $2,159 million or $3.23 per share on a reported basis, and net income of $2,226 million or $3.33 per share on an adjusted basis.
"We delivered another quarter of strong performance with positive operating leverage in each of our diversified businesses, contributing to strong earnings for fiscal 2021. This year, we significantly advanced our strategy to build a digitally-enabled, future-ready bank, underpinned by our Purpose and a winning culture. We've taken action to improve our competitive position through a disciplined approach to expense management, capital allocation and investment in future growth, while meaningfully improving our efficiency ratio and return on equity over the last several years," said Darryl White, Chief Executive Officer, BMO Financial Group.
"Strong, consistent financial performance enables us to continue to invest in improving the well-being of our employees, customers and communities. We continue to be recognized as a global leader in sustainability as one of only five Canadian companies included in the Dow Jones Sustainability World Index – a confirmation of the progress we're making on our bold commitments for a thriving economy, a sustainable future and an inclusive society. We will continue to act as a catalyst for positive change, including serving as our clients' lead partner in the transition to a net zero world."
"Looking ahead to 2022, we will continue to position BMO for growth with the ensuing economic recovery. We are making targeted investments in technology and talent to drive enhanced customer experiences and deliver market-leading advice to help them make real financial progress. Today we announced a 25% dividend increase and our intention to repurchase up to 22.5 million shares, reflecting the strength of our capital position and confidence in delivering sustained, long-term performance for our shareholders," concluded Mr. White.
Concurrent with the release of results, BMO announced a first quarter 2022 dividend of $1.33 per common share, an increase of $0.27 or 25% from the prior quarter and the prior year. The quarterly dividend of $1.33 per common share is equivalent to an annual dividend of $5.32 per common share.
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