The wealth management arm of Bank of Montreal, BMO, reported a net income of $401m in Q3 2021, $60m or 18% up year-on-year.
In addition, adjusted net income was $406m, a rise of $57m or 16% year-on-year.
This was attributed to a 11% increase in net revenue which was offset by higher expenses.
Furthermore, the Traditional Wealth arm recorded net income of $328m, $57m and 21% up compared to the same period in 2020, with adjusted net income of $333m in Q3 2021. This cam from higher revenue, primarily from growth in client assets, including stronger global markets.
BMO in Q3 2021
Overall, the BMO group witnessed a net income of $2,275m, a year-on-year increased of 85%. In terms of adjusted net income, the rise is $2,292m and 82%.
Also, reported EPS was $3.41, an increase of 89% year-on-year.
“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, chief executive of BMO Financial Group.
“We are executing strategies and investing in our businesses to deliver strong returns and efficiency improvements, which this quarter, delivered positive operating leverage of 2.1%, an efficiency ratio of 55.7%, a 110 basis point improvement from last year, and return on equity of 17.6%. Our leadership in risk and balance sheet management remains a key differentiator and contributed to continued strong credit metrics and a robust capital position with a CET1 ratio of 13.4%.”
“Our consistent financial performance enables us to deliver on our vision for a sustainable future. 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.” concluded Mr. White