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BMO Financial Group Reports Fourth Quarter and Fiscal 2024 Results

BMO Financial Group, one of North America’s leading financial institutions, released its earnings for the fourth quarter of 2024, showcasing remarkable growth despite facing challenges from elevated provisions for credit losses. With net income climbing to $2,304 million for the quarter—an impressive increase of $594 million or 35% compared to the same period last year—BMO has once again demonstrated its resilience and strategic focus on profitability.

Financial Highlights

In comparison to Q4 2023, BMO's reported earnings per share (EPS) stood at $2.94, marking a $0.75 rise. However, on an adjusted basis, EPS fell to $1.90, a decline of $1.03. The bank's adjusted net income for Q4 reached $1,542 million, 31% lower than the previous year, largely influenced by a significant rise in provisions for credit losses, which totaled $1,523 million during the quarter—a stark contrast to $446 million in Q4 2023.

For the entirety of fiscal 2024, net income surged to $7,327 million from $4,437 million a year earlier. This growth is attributed to a solid increase in total revenue, which reached $32,795 million, up from $29,259 million. BMO's commitment to investing in client solutions and technology was clearly illustrated in its record fiscal performance.

Growth in Core Banking

The bank witnessed substantial growth across its operating segments. In Canadian Personal and Commercial Banking, reported net income fell short compared to the prior year, coming in at $750 million, reflecting the broader market pressures and increased provisions. In contrast, U.S. Personal and Commercial Banking recorded a net income of $256 million, significantly down from the record highs seen last year.

BMO Wealth Management experienced a mixed quarter, reporting net income of $326 million, which represented a slight downturn compared to prior results. The wealth management division, however, showcased increased assets under management, demonstrating BMO's growing dominance in the wealth management sector.

Capital Management and Shareholder Returns

BMO's Common Equity Tier 1 (CET1) ratio improved to 13.6%, up from 12.5%, demonstrating strong capitalization and risk management practices. This stability creates the foundation necessary for sustainable growth and supports the bank's intention to enhance shareholder value. The board of directors declared a quarterly dividend of $1.59 per common share, a 5% increase from last year.

Additionally, BMO announced plans for a normal course issuer bid (NCIB) to repurchase up to 20 million common shares, underscoring its commitment to returning capital to shareholders while maintaining a robust balance sheet.

CEO Insights

Darryl White, CEO of BMO Financial Group, remarked on the bank's performance, stating, "In 2024, BMO achieved strong growth in pre-provision pre-tax earnings across all operating groups. Despite the higher provisions for credit losses that impacted our bottom line, we are entering 2025 with a robust foundation for continued growth. Our focus on customer deposits, which increased by $61 billion year-over-year, reflects the trust clients place in BMO as a partner in navigating complex economic challenges."

As BMO enters the new fiscal year, its priorities remain firmly focused on leveraging technology, expanding its market share, and enhancing customer experiences. This strategy aims not only to foster profitability but also to drive sustainable growth and strengthen BMO's position as a leading financial institution in North America.

Conclusion

As we review BMO Financial Group's fourth quarter and fiscal 2024 results, it is clear that despite challenges in credit provisions, the bank is poised for continued success. With a solid capital base, a strategic focus on growth, and an unwavering commitment to shareholder returns, BMO is well-equipped to face any market conditions ahead.

For detailed insights into BMO’s financial results and future outlook, investors and stakeholders are encouraged to visit the bank’s investor relations website.