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TORONTO, ON, 2016年12月7日 - (JCN Newswire) - Financial Results Highlights:
Fourth Quarter 2016 Compared with Fourth Quarter 2015:
- Net income of $1,345 million, up 11%; adjusted net income(1) of $1,395 million, up 10%
- EPS(2) of $2.02, up 10%; adjusted EPS(1,2) of $2.10, up 11%
- ROE of 13.8%, compared with 12.9%; adjusted ROE(1) of 14.4%, compared with 13.5%
- Provisions for credit losses of $174 million, compared with $128 million
- Common Equity Tier 1 Ratio of 10.1%
- Dividend increased by $0.02 from the preceding quarter to $0.88
Fiscal 2016 Compared with Fiscal 2015:
- Net income of $4,631 million, up 5%; adjusted net income(1) of $5,020 million, up 7%
- EPS(2) of $6.92, up 5%; adjusted EPS(1,2) of $7.52, up 7%
- ROE of 12.1%, compared with 12.5%; adjusted ROE(1) of 13.1%, compared with 13.3%
- Provisions for credit losses of $815 million, compared with $612 million
- Annual dividends paid per share of $3.36 compared to $3.20, an increase of $0.16 or 5%
For the fourth quarter ended October 31, 2016, BMO Financial Group (TSX: BMO) (NYSE: BMO) reported net income of $1,345 million or $2.02 per share on a reported basis, and net income of $1,395 million or $2.10 per share on an adjusted basis.
"The actions we have taken over the last several years to advance our strategic priorities are reflected in strong performance for the fourth quarter and the year. Adjusted earnings for 2016 surpassed $5 billion for the first time and we delivered adjusted earnings per share of $7.52, both up 7% from the previous year," said Bill Downe, Chief Executive Officer, BMO Financial Group.
"These results reflect, in addition to a strong and diversified business model, the role our technology capabilities are playing in differentiating our offering and the customer experience we are able to deliver. They are allowing us to be faster and more efficient while delivering ever-increasing value.
"In every part of the bank, we balanced decisions to improve operating efficiencies with those aimed at enabling future growth. We are well-capitalized with a strong balance sheet and a consistent and disciplined approach to managing risk.
"As we mark the start of our 200th year in business, we have never been better positioned. We are focused on the future and are confident in our capabilities as we build on momentum and drive continued growth. Our first priority remains to achieve industry-leading customer loyalty by delivering on our brand promise," concluded Mr. Downe.
Concurrent with the release of results, BMO announced a first quarter 2017 dividend of $0.88 per common share, up $0.02 or 2% from the preceding quarter and up $0.04 per share or 5% from a year ago, equivalent to an annual dividend of $3.52 per common share.
BMO's 2016 audited annual consolidated financial statements and accompanying management's discussion & analysis (MD&A), along with the supplementary financial information report, are available online at www.bmo.com/investorrelations and at www.sedar.com.
(1) Results and measures in this document are presented on a GAAP basis. They are also presented on an adjusted basis that excludes the impact of certain items. Adjusted results and measures are non-GAAP and are detailed for all reported periods in the Non-GAAP Measures section, where such non-GAAP measures and their closest GAAP counterparts are disclosed.
(2) All Earnings per Share (EPS) measures in this document refer to diluted EPS unless specified otherwise. EPS is calculated using net income after deductions for net income attributable to non-controlling interest in subsidiaries and preferred share dividends.
Note: All ratios and percentage changes in this document are based on unrounded numbers.
Total Bank Overview
Net income was $1,345 million for the fourth quarter of 2016, up 11% from the prior year. Adjusted net income, which excludes the amortization of acquisition-related intangible assets and acquisition integration costs in both periods, was $1,395 million, up 10% from the prior year with good income growth across our operating groups. EPS was $2.02, up 10% and adjusted EPS was $2.10, up 11% year over year. Return on equity was 13.8% and adjusted return on equity was 14.4%. Book value per share increased 6% from the prior year to $59.56 per share. The Common Equity Tier 1 Ratio was 10.1%.
Operating Segment Overview for the Fourth Quarter of 2016
Canadian P&C
Reported and adjusted net income of $592 million increased 5% from a year ago. Revenue increased $91 million or 5% from the prior year due to higher balances across most products and increased non-interest revenue. Provisions for credit losses increased $11 million to $123 million due to higher provisions in both the consumer and commercial portfolios. Non-interest expense increased $35 million or 4% reflecting continued investment in the business, net of an ongoing focus on expense management. Operating leverage was positive 1.4%. Year-over-year loan growth was 6% and deposit growth was 8%.
In our personal banking business, year-over-year loan and deposit growth was 4% and 9%, respectively. During the quarter, we completed the upgrade of our automated banking machines (ABMs) that offer enhanced functionality including intelligent touch screens and envelope-free deposits.
In our commercial banking business, year-over-year loan and deposit growth was 12% and 5%, respectively. These results reflect our continued focus on increasing sales force capacity and developing new products and services that meet our clients' needs. This quarter, we simplified our product portfolio through the launch of five new Business Banking Plans aligned to our customers' growing preference for digital banking.
U.S. P&C
Net income of $286 million increased $78 million or 38%. Adjusted net income, which excludes the amortization of acquisition-related intangible assets, was $299 million up $77 million or 35%. All amounts in the remainder of this section are on a U.S. dollar basis.
Net income of $217 million increased $59 million or 37% from a year ago and adjusted net income of $226 million increased $58 million or 34%, benefiting from the acquired BMO Transportation Finance business and continued good growth in commercial lending.
Revenue of $906 million increased $182 million or 25%, due to the acquired BMO Transportation Finance business, higher organic loan and deposit volumes, and increased deposit spreads and fee income, net of loan spread compression. Provisions for credit losses of $50 million increased $17 million, primarily due to a consumer loan sale benefit in the prior year, and the acquired BMO Transportation Finance business. Adjusted non-interest expense of $546 million increased $71 million or 15%, due primarily to the acquired BMO Transportation Finance business. Adjusted operating leverage was positive 9.9%.
Loans grew $10.7 billion or 18%, benefiting from the acquired BMO Transportation Finance business and organic commercial loan growth of 17%.
During the quarter, the Federal Deposit Insurance Corporation released their annual deposit market share results. In the Chicago and Milwaukee areas, we maintained our strong second place rankings, as BMO Harris Bank's deposit market share improved to 13.6% and 13.8%, respectively. We maintained our overall number four market share ranking within our primary footprint of Wisconsin, Illinois, Missouri, Kansas, Indiana, and Minnesota.
BMO Wealth Management
Net income was $279 million, up 15% from a year ago. Adjusted net income, which excludes acquisition integration costs and the amortization of acquisition-related intangible assets, was $302 million up 11% from a year ago. Traditional wealth reported net income was $201 million compared to $186 million a year ago. Traditional wealth adjusted net income was $224 million compared to $214 million a year ago largely reflecting improved market conditions and growth across most of our businesses. From a year-over-year growth perspective, a gain on sale of an investment in the current quarter was offset by a gain on sale net of a legal provision in the prior year. Net income in insurance was $78 million, up $21 million from a year ago mainly due to the impact of business growth and favourable market movements in the current quarter. Adjusted operating leverage, net of insurance claims, commissions and changes in policy benefit liabilities, was 2.7% as we focused on expense management.
Assets under management and administration increased $12 billion or 1% from a year ago to $875 billion. Year-over-year both loans and deposits grew by 10% as we continue to diversify our product mix.
BMO Private Bank was named Best Private Bank - Canada - 2016 by World Finance for the sixth consecutive year, recognized for its operational dynamics and strong brand impact establishing a leading value proposition.
BMO Capital Markets
Reported net income of $396 million increased $155 million or 65% from a year ago. Adjusted net income, which excludes the amortization of acquisition-related intangible assets, was $396 million, an increase of $154 million or 64%, driven by strong revenue performance. Revenue increased $249 million or 27%. In our Investment and Corporate Banking business, revenue increased due to strong mergers and acquisitions advisory activity, higher revenue from equity and debt underwriting, corporate lending and net securities gains. Trading Products revenue increased due to higher trading revenue from improved client activity, particularly in equity and interest rate trading, and higher equity issuances. Net recoveries of credit losses of $8 million increased $6 million from the prior year. Non-interest expense increased $38 million or 6%, mainly due to higher employee-related costs given strong performance.
During the quarter, Greenwich Associates ranked BMO Capital Markets first (tied) as a Greenwich Quality Leader in Overall Canadian Fixed Income, Canadian Fixed Income Sales, Canadian Fixed Income Research and Canadian Fixed Income Trading; second as a 2016 Greenwich Share Leader for Equity Trading Share and second (tied) as a 2016 Greenwich Share Leader for Overall Canadian Fixed Income Market Share. BMO Capital Markets was also named Best Bank for the Canadian Dollar for the sixth consecutive year by FX Week magazine and ranked #1 (tied) by its clients as a Prime Broker in Canada in the 2016 Global Custodian Prime Brokerage Survey. BMO Capital Markets is acting as financial advisor to Spectra Energy on its combination with Enbridge, the largest M&A deal in Canadian history, creating the largest energy infrastructure company in North America with an enterprise value of $165 billion.
Corporate Services
Corporate Services net loss for the quarter was $208 million, compared with a net loss of $39 million a year ago. Corporate Services adjusted net loss for the quarter was $194 million, compared with an adjusted net loss of $33 million a year ago. Adjusted results in both periods exclude acquisition integration costs. Both reported and adjusted results declined due to lower revenue, mainly driven by a recovery under a legal settlement in the prior year, above-trend expenses and lower credit recoveries.
Adjusted results in these Total Bank Overview and Operating Segment Overview sections are non-GAAP amounts or non-GAAP measures. Please see the Non-GAAP Measures section.
Capital
BMO's Common Equity Tier 1 (CET1) Ratio was 10.1% at October 31, 2016. The CET1 Ratio increased from 10.0% at the end of the third quarter as higher capital more than offset higher risk-weighted assets.
Provision for Credit Losses
The total provision for credit losses was $174 million, an increase of $46 million from the prior year due to higher provisions in Canadian and U.S. P&C and lower net recoveries in Corporate Services.
Caution
The foregoing sections contain forward-looking statements. Please see the Caution Regarding Forward-Looking Statements.
Regulatory Filings
Our continuous disclosure materials, including our interim filings, annual Management's Discussion and Analysis and audited consolidated financial statements, Annual Information Form and Notice of Annual Meeting of Shareholders and Proxy Circular are available on our website at www.bmo.com/investorrelations, on the Canadian Securities Administrators' website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov.
Bank of Montreal uses a unified branding approach that links all of the organization's member companies. Bank of Montreal, together with its subsidiaries, is known as BMO Financial Group. As such, in this document, the names BMO and BMO Financial Group mean Bank of Montreal, together with its subsidiaries.
Financial Review
The Financial Review commentary is as of December 6, 2016. The Financial Review should be read in conjunction with the unaudited interim consolidated financial statements for the period ended October 31, 2016, included in this document, as well as the audited consolidated financial statements for the year ended October 31, 2016, and the MD&A for Fiscal 2016 in BMO's 2016 Annual Report. The material that precedes this section comprises part of this Financial Review.
The 2016 Annual MD&A includes a comprehensive discussion of our businesses, strategies and objectives, and can be accessed on our website at www.bmo.com/investorrelations. Readers are also encouraged to visit the site to view other quarterly financial information.
Bank of Montreal's management, under the supervision of the CEO and CFO, has evaluated the effectiveness, as of October 31, 2016, of Bank of Montreal's disclosure controls and procedures (as defined in the rules of the Securities and Exchange Commission and the Canadian Securities Administrators) and has concluded that such disclosure controls and procedures are effective.
There were no changes in our internal control over financial reporting during the quarter ended October 31, 2016, which materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Because of inherent limitations, disclosure controls and procedures and internal control over financial reporting can provide only reasonable assurance and may not prevent or detect misstatements.
As in prior quarters, Bank of Montreal's Audit and Conduct Review Committee reviewed this document and Bank of Montreal's Board of Directors approved the document prior to its release.
Non-GAAP Measures
Results and measures in this document are presented on a GAAP basis. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from financial statements prepared in accordance with International Financial Reporting Standards (IFRS). References to GAAP mean IFRS. They are also presented on an adjusted basis that excludes the impact of certain items as set out in Table 2 below. Results and measures that exclude the impact of Canadian/U.S. dollar exchange rate movements on our U.S. segment are non-GAAP measures (please see the Foreign Exchange section for a discussion of the effects of changes in exchange rates on our results). Management assesses performance on a reported basis and on an adjusted basis and considers both to be useful in assessing underlying ongoing business performance. Presenting results on both bases provides readers with a better understanding of how management assesses results. It also permits readers to assess the impact of certain specified items on results for the periods presented and to better assess results excluding those items if they consider the items to not be reflective of ongoing results. As such, the presentation may facilitate readers' analysis of trends, as well as comparisons with our competitors. Except as otherwise noted, management's discussion of changes in adjusted results in this document applies equally to changes in corresponding reported results. Adjusted results and measures are non-GAAP and as such do not have standardized meaning under GAAP. They are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from or as a substitute for GAAP results.
Caution Regarding Forward-Looking Statements
Bank of Montreal's public communications often include written or oral forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission, or in other communications. All such statements are made pursuant to the "safe harbor" provisions of, and are intended to be forward-looking statements under, the United States Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may involve, but are not limited to, comments with respect to our objectives and priorities for Fiscal 2017 and beyond, our strategies or future actions, our targets, expectations for our financial condition or share price, and the results of or outlook for our operations or for the Canadian, U.S. and international economies.
By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. There is significant risk that predictions, forecasts, conclusions or projections will not prove to be accurate, that our assumptions may not be correct and that actual results may differ materially from such predictions, forecasts, conclusions or projections. We caution readers of this document not to place undue reliance on our forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking statements.
The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate; weak, volatile or illiquid capital and/or credit markets; interest rate and currency value fluctuations; changes in monetary, fiscal, tax or economic policy; the level of competition in the geographic and business areas in which we operate; changes in laws or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance; judicial or regulatory proceedings; the accuracy and completeness of the information we obtain with respect to our customers and counterparties; our ability to execute our strategic plans and to complete and integrate acquisitions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; operational and infrastructure risks; changes to our credit ratings; political conditions, including changes relating to or affecting economic or trade matters; global capital markets activities; the possible effects on our business of war or terrorist activities; outbreaks of disease or illness that affect local, national or international economies; natural disasters and disruptions to public infrastructure, such as transportation, communications, power or water supply; technological changes; information and cyber-security; and our ability to anticipate and effectively manage risks associated with all of the foregoing factors.
We caution that the foregoing list is not exhaustive of all possible factors. Other factors and risks could adversely affect our results. For more information, please see the Enterprise-Wide Risk Management section on pages 79 to 112 of BMO's 2016 Annual Report, which outlines certain key factors and risks that may affect Bank of Montreal's future results. Investors and others should carefully consider these factors and risks, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. Bank of Montreal does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by the organization or on its behalf, except as required by law. The forward-looking information contained in this document is presented for the purpose of assisting our shareholders in understanding our financial position as at and for the periods ended on the dates presented, as well as our strategic priorities and objectives, and may not be appropriate for other purposes.
Assumptions about the performance of the Canadian and U.S. economies, as well as overall market conditions and their combined effect on our business, are material factors we consider when determining our strategic priorities, objectives and expectations for our business. In determining our expectations for economic growth, both broadly and in the financial services sector, we primarily consider historical economic data provided by the Canadian and U.S. governments and their agencies. See the Economic Developments and Outlook section on page 30 of BMO's 2016 Annual MD&A.
INVESTOR AND MEDIA PRESENTATION
Investor Presentation Materials
Interested parties are invited to visit our website at www.bmo.com/investorrelations to review our 2016 Annual Report, this quarterly news release, presentation materials and supplementary financial information package online.
Quarterly Conference Call and Webcast Presentations
Interested parties are also invited to listen to our quarterly conference call on Tuesday, December 6, 2016, at 2:00 p.m. (EST). At that time, senior BMO executives will comment on results for the quarter and respond to questions from the investor community. The call may be accessed by telephone at 416-695-9753 (from within Toronto) or 1-888-789-0089 (toll-free outside Toronto). A replay of the conference call can be accessed until Monday, February 27, 2017, by calling 905-694-9451 (from within Toronto) or 1-800-408-3053 (toll-free outside Toronto) and entering passcode 5740558.
A live webcast of the call can be accessed on our website at www.bmo.com/investorrelations. A replay can also be accessed on the site.
Shareholder Dividend Reinvestment and Share Purchase Plan (the Plan)
Average market price as defined under the Plan
August 2016: $85.56
September 2016: $85.84
October 2016: $86.26
For dividend information, change in shareholder address or to advise of duplicate mailings, please contact
Computershare Trust Company of Canada
100 University Avenue, 9th Floor
Toronto, Ontario M5J 2Y1
Telephone: 1-800-340-5021 (Canada and the United States)
Telephone: (514) 982-7800 (international)
Fax: 1-888-453-0330 (Canada and the United States)
Fax: (416) 263-9394 (international)
E-mail: service@computershare.com
For other shareholder information, including the notice for our normal course issuer bid, please contact
Bank of Montreal
Shareholder Services
Corporate Secretary's Department
One First Canadian Place, 21st Floor
Toronto, Ontario M5X 1A1
Telephone: (416) 867-6785
Fax: (416) 867-6793
E-mail: corp.secretary@bmo.com
For further information on this document, please contact
Bank of Montreal
Investor Relations Department
P.O. Box 1, One First Canadian Place, 10th Floor
Toronto, Ontario M5X 1A1
To review financial results online, please visit our website at http://www.bmo.com/. To review regulatory filings and disclosures online, please visit our website at www.bmo.com/investorrelations.
Our 2016 Annual MD&A, audited annual consolidated financial statements and annual report on Form 40-F (filed with the U.S. Securities and Exchange Commission) are available online at www.bmo.com/investorrelations and at www.sedar.com. Printed copies of the bank's complete 2016 audited financial statements are available free of charge upon request at 416-867-6785 or corp.secretary@bmo.com.
(c) Registered trademark of Bank of Montreal
Annual Meeting 2017
The next Annual Meeting of Shareholders will be held on Tuesday, April 4, 2017, in Toronto, Ontario.
CONTACT INFORMATION
Contacts:
Media Relations Contacts
Ralph Marranca, Toronto
ralph.marranca@bmo.com
416-867-3996
Valerie Doucet, Montreal
valerie.doucet@bmo.com
514-877-8224
Investor Relations Contacts
Jill Homenuk, Head, Investor Relations
jill.homenuk@bmo.com
416-867-4770
Christine Viau, Director, Investor Relations
christine.viau@bmo.com
416-867-6956
Corporate Secretary
Barbara Muir, Corporate Secretary
corp.secretary@bmo.com
416-867-6423
配信代行: JCN
トピック: Press release summary
Source: BMO Financial Group
https://www.acnnewswire.com
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