《Bank of Montreal (BMO) 2024年年度報告「TSX」.pdf》由會員分享，可在線閱讀，更多相關《Bank of Montreal (BMO) 2024年年度報告「TSX」.pdf（211頁珍藏版）》請在三個皮匠報告上搜索。
1、2024 ANNUAL REPORT TO SHAREHOLDERSBMO Financial Group|207th Annual ReportBusiness Review1 Strategy2 Chairs Message3 ChiefExecutiveOfficersMessage6 Financial Performance8 Real Financial Progress10 Progress in Innovation11 Progress for Stronger Communities12 Board of Directors and Executive CommitteeF
2、inancial Review13 Enhanced Disclosure Task Force14 Managements Discussion and Analysis117 Supplemental Information127 Statement of Managements Responsibility for Financial Information128 Independent Auditors Report131 Reports of Independent Registered Public Accounting Firm134 Consolidated Financial
3、 Statements139 Notes to Consolidated Financial StatementsResources and Directories125 Glossary of Financial Terms207 Where to Find More Information208 Shareholder InformationBank of Montreal brands the organizations member companies as BMO Financial Group.Note 27 of the consolidated financial statem
4、ents lists the intercorporate relationships among Bank of Montreal and its significant subsidiaries.Who We AreEstablished in 1817,BMO Financial Group is the eighth largest bank in North Americabyassets,withtotalassetsof$1.41trillion.Weareahighlydiversifiedfinancialinstitutionprovidingabroadrangeofpe
5、rsonalandcommercial banking,wealth management,global markets and investment banking products and services.We serve millions of customers across North America,and in select markets globally,through three integrated operating groups.Personal and Commercial BankingProvidesfinancialproductsandservicesto
6、customersacrossNorthAmerica.PersonalandBusinessBankinghelpscustomersmakerealfinancialprogressthroughanextensive network of branches,contact centres,digital banking platforms and automated teller machines.Commercial Banking offers valuable industry expertise,local presence and a comprehensive range o
7、f commercial products and services.BMO Wealth ManagementServes a full range of clients,from individuals and families to business owners and institutions,offering a wide spectrum of wealth,asset management and insuranceproductsandservicesaimedathelpingclientsmakerealfinancialprogress through planning
8、,growing,protecting and transitioning their wealth.Our asset management business is focused on making a positive impact and deliveringinnovativefinancialsolutionsandstrategiesforourclients.BMO Capital MarketsOffers a comprehensive range of products and services to corporate,institutional and governm
9、ent clients.BMO Capital Markets has thousands of professionals around the world supporting the growth aspirations of our clients across the enterprise.Our strategyAt BMO,we continue to build a high-performing,digitally enabled,future-ready bank with engaged employees and a winning culture.We are foc
10、used on helping our customers make real financial progress,and on financing our clients growth and innovation,while also investing in our workforce.Anchored by our Purpose to Boldly Grow the Good in business and life we are driven by our strategic priorities for growth and guided by our values as we
11、 build a foundation of trust with our colleagues,customers and communities.Our strategic prioritiesOur group strategic priorities align with and support our enterprise-wide strategy,positioning us well to drive competitive performance.World-class loyalty and growth,powered by One Client leadership,b
12、ringing the full suite of BMOs products,services and advice to our clientsWinning culture driven by alignment,empowerment and recognition Digital First for speed,scale and the elimination of complexityBe our clients lead partner in the transition to a net zero worldSuperior management of risk,capita
13、l and funding performanceBMO Financial Group 207th Annual Report 2024 12 BMO Financial Group 207th Annual Report 2024George A.CopeChair of the BoardThere were three important changes in the makeup of your board of directors in 2024.Linda Huber stepped down from the board earlier this year and we tha
14、nk her for her many contributions.Diane Cooper and Brian McManus were appointed as new independent directors.We will beaskingyoutoconfirmtheirappointmentatournext Annual Meeting of Shareholders.Ms.Cooper was formerly President and CEO of GE Capitals Commercial Distribution businessandanofficerofGECo
15、mpany,andsheservesonthe boards of BMOs U.S.subsidiaries,BMO Financial Corp.and BMO Bank N.A.Mr.McManus is the Executive Chair of Polycor Inc.,a global leader in the natural stone industry.Prior to that,he served as Executive Chair and Chief Executive OfficerofUni-SelectInc.aftermanyyearsasPresidenta
16、ndChiefExecutiveOfficerofStella-JonesInc.DianeandBrianeachbringsignificantskillsandexperienceandwillbevaluable additions to your board.Lastly,I would like to recognize and thank Chris Edwards,who will not be standing for re-election at our next Annual Meeting of Shareholders.Chris is our Governance
17、and Nominating Committee chair,has been a steady and valued presence on the board for many years and will be greatly missed at our board.Chris will continue to serve on the boards of BMOs U.S.subsidiaries,BMO Financial Corp.and BMO Bank N.A.On behalf of all the directors,we thank all our fellow shar
18、eholders for the trust you place in us.It is a privilege to serve as your representatives as BMO continues to Grow the Good and help our customers,colleagues,and thecommunitiesweservemakerealfinancialprogress.Looking back on 2024,BMO delivered resilient operating performance in a year not without it
19、s challenges.Management delivered on its commitment to positive operating leverage in each of the last three quarters and for the full year,with improvedefficiency,goodrevenuegrowthandsustainedcost discipline.In anticipation of a slowing economic environment,management took early action to dynamical
20、ly manage our businesses and closely manage expenses,while continuing to invest for the long term and support our customers.At the same time,credit performance deteriorated more than we anticipated,which management continues to carefully manage.Looking forward,we areconfidentinthebanksdisciplinedapp
21、roachtoriskmanagement which has outperformed over the long term.Wearefirmlycommittedtoourbusinessandgrowthstrategies,and we recognize the strong contribution of the banks employees,who worked throughout the year to Boldly Grow the Good in business and life.Wealsostartthenewyearwithconfidencethatour
22、long-term growth strategy is making considerable progress.The fundamentals underlying each line of business at BMO are positive revenue growth,deposit growth,operating leverage,attracting new customers and growing relationships with existing customers and,as our CEO Darryl White details in his messa
23、ge to you,the results show that our decisions to focus on delivering the whole of the bank in service of our clients and our focus on digital innovation have set us on the right path.In the broader economy,interest rates in North America began to moderate over the last year,which was a welcome sign
24、for Canadians and Americans.Yet,there is much uncertainty in the world and the coming year will require careful and deliberate management.Your board is ready for the challenge.George A.CopeChairs MessageBMO Financial Group 207th Annual Report 2024 3For 207 years,BMO has provided our customers and co
25、mmunitieswiththefinancialstrength,expertguidanceand innovative tools to help them prosper and thrive.Now,serving our clients as North Americas eighth largest bank with total assets of$1.41 trillion,Team BMO is focused on delivering for our clients with the full scope and strength of our products and
26、 services.Throughout more than two centuries,weve helped generations of clients to prosper and supported the growth of businesses.2024 was no different.Our ongoing strategic investments to expand and enhance the scale of BMOs North American operations are delivering value to more clients throughout
27、more communities than ever before.This years Annual Report illustrates the strength of those outcomes and our work to support our clients and deliver shareholder value.Navigating the economic landscapeThis year,the global economy continued to endure challenges,with restrictive interest rates,higher
28、costs of living,persistent and growing geopolitical tensions and extreme weather once again impacting markets,communities,businesses and families.Through it all,BMO was there for our customers.As we entered the latter half of the year,reasons for more optimism emerged.With monetary policy having don
29、e the workofmoderatinginflationinmostmajoreconomies,many have achieved the desired“soft landing”.The U.S.economy has performed better than expected,ledbyaboomintechspending,fiscalsupportandresilientconsumer spending.In Canada with borrowing costs continuing to weigh on individuals,families and busin
30、esses,and growth coming in relatively weaker the Bank of Canada took aggressive action,cutting rates early and consistently.Other central banks,including in the U.S.and Europe,are beginning to follow suit.The strength of BMOs North American platformBMOs resilient operating performance through 2024 u
31、nderscored the strength of our North American platform.Aided by strong expense management,we drove good pre-provision pre-tax earnings performance for the year,with growth across all operating groups.We completed the integration of Bank of the West and accelerated our momentum in these new markets.W
32、e met our commitment to positive operating leverage in each of the last three quarters and for the full year.Deliveringsuperiorriskmanagementisoneofourfivestrategic priorities,and a point of pride for our bank.Were in the business of helping our clients make progress,and this year a combination of e
33、nvironmental headwinds andspecificclientoutcomesledtoelevatedprovisionsforcredit losses.While we have a long track record of strong credit performance,our 2024 outcomes in this area did not meet our expectations.We expect provisions for credit losses to moderate through 2025,with some variability qu
34、arter to quarter,as the business environment improves.Our conviction in our growth capacity is bolstered by our capital base,as measured by our CET1 Ratio.This ratio,which compares the banks capital against its risk-weighted assets,increased meaningfully by 110 basis points from last year to 13.6%,p
35、roviding a sturdy foundation for the more constructive business growth we anticipate in 2025,creating ample capacity to support our clients and return Darryl WhiteChiefExecutiveOfficerChief Executive Officers Message4 BMO Financial Group 207th Annual Report 2024CHIEF EXECUTIVE OFFICERS MESSAGEnotabl
36、y California,with the acquisition of Bank of the West,represented the natural next step in our North American growth strategy.From humble roots in New York City in 1818,today BMO U.S.hasevolvedintoaTop10U.S.bankofferingdiversifiedbankingsolutionsinthreeofthetopfiveU.S.bankingmarkets,and digital reta
37、il banking and payments platforms that extend nationally.Our U.S.operations stand at more than US$420 billion in assets,and we continue to grow alongside our customers,every day.While this represents an impressive story of growth,ambition and achievement,whats most exciting is the potential of our U
38、.S.franchise as we continue the next phase of our evolution.We have grown in scale and now its time to focus on winning in key areas bringing all of our capabilities to best serve our clients in strategic and profitablegrowthmarkets.Canada and the U.S.have established one of the worlds most successf
39、ul trading relationships,providing a competitive edge to businesses on both sides of the border.This North American advantage helps lower prices,supports jobsandcreatesbetteropportunitiesforbusinessestoscale and enhance productivity and BMO will do our part to reinforce,promote and defend this partn
40、ership,while ensuring our clients can maximize their opportunity in both countriesandrealizeitsfullbenefit.Driving innovation through digital Named by Fast Company as one of the Worlds Most Innovative Companies in 2024,which evaluates businesses across 58 industries in every region of the world,BMO
41、is delivering valuable digital experiences that help our clients makerealfinancialprogressineveryoneofourbusinesses.As a digitally enabled,future-ready bank,we were ranked as one of the top 10 banks in the world in the Innovation pillar of the Evident AI Index,an independent benchmark forAImaturityi
42、nfinancialservices,andwewererecentlyrecognized by The Digital BankerwithfiveGlobalRetailBanking Innovation Awards for leadership in digital innovation,customer experience and delivery excellence.This includes for BMO Customer Feedback Assist,our large language model(LLM)powered tool that helps emplo
43、yees address customer feedback and improve customer satisfaction.Our team also won a Red Dot Design Concept award for ourre-imaginedbusinessbankingexperienceafirst for any bank in Canada and the U.S.in this category.excess capital to our shareholders.Our liquidity is also strong,andwesawcustomerdepo
44、sitsgrowsignificantly by$61 billion,or 9%,signs of a very healthy franchise.We continue to maintain the longest dividend payout record of any company in Canada at 196 years a record werefiercelyproudof.Purpose,strategy and performance BMOenteredintofiscal2025withaclearagendaandmomentum.Our bank is d
45、esigned to deliver sustained performance in any environment,and the teams executing it do so with a strong sense of Purpose,every day.This Purpose is core to who we are.Were committed to Boldly Grow the good in business and life as we drive progress for a thriving economy,a sustainable future,and an
46、 inclusive society.That means helping businesses grow,helping customers buy homes and strengthening the communities we serve all while driving innovation to make those outcomes easier.It means ensuring our customers,employees and communities have opportunities to make it all happen.As we drive this
47、progress,members of Team BMO remain focusedonachievingprofitablegrowththroughdisciplinedexecution of our strategic priorities,which include growing client loyalty,accelerating our Digital First strategy and delivering on our climate ambition to be our clients lead partner in the transition to a net
48、zero world.And were doing it while growing our businesses,closely managing credit,and elevating our focus on rebuilding our return on equity(ROE).StrongfinancialperformanceisintegraltoourPurpose.We know that the stronger we perform as a team,the greater the good we can grow for our clients,our colle
49、agues and the communities we serve.After our most recent U.S.expansion,that includes delivering more BMO to more customers than ever before.The evolution of BMO U.S.The performance of our U.S.business is an essential part of our strategy and our growth ambition its at the core of who we are.This yea
50、r,we celebrated the 40th anniversary of BMOs acquisition of Harris Bank,which set the 20th century foundationforourgrowthintoanationallysignificantU.S.bank.Our recent market entry to the U.S.West and BMO Financial Group 207th Annual Report 2024 5our actions,and every member of Team BMO is expected t
51、o read it,to understand it,and to follow it.Our team members are encouraged to ask questions if theyre unsure and,in making the right decision,to know they can count on the unwavering support of the entire organization.That support also extends to helping employees build their skills.BMO is committe
52、d to the learning and skill developmentofourteam,andwevemadesignificantinvestments in award-winning learning programs,providing employees with unique career-building experiences that help them grow and develop,both personally and professionally.Employee engagement and our winning culture are critica
53、l enablers to sustained business performance and advancing our Purpose,and were proud to have been recognized as one of the Most Admired Corporate Cultures in Canada by Waterstone Human Capital this year.Thank you to all our employees for their commitment to our customers and for always looking for
54、ways to perform at the highest level.Looking aheadAswelookaheadto2025,Imconfidentinourteamsability to deliver.At BMO,we believe that the prosperity of our customers,colleagues and the communities we serve is integral to who we are and what we do.When they succeed,we succeed.We will continue to be in
55、spired by our clients,helping them make the progress that enables our economy and society to thrive.With BMOs strength and stability,were well positioned to execute with purpose,pace and discipline in the year ahead.To all of our partners,thank you for putting your trust in BMO.I cant wait to see wh
56、at we can do together in 2025 and beyond.And BMO was ranked#1 in satisfaction with the Wealth Management Digital Experience among Full-Service Investors intheJ.D.Power1 2024 Canada Wealth Management Digital Experience Study.Data is at the core of our Digital First advantage,securely increasing perso
57、nalization and providing more powerful insights for customers and our partners.Our cloud evolution is the key enabler,fuelling a modernized engine that accelerates innovation and delivers high value.To support these leading innovations,BMO understands and embraces the opportunity to harness emerging
58、 technologies,includingnewapplicationsofartificialintelligenceandquantum computing,to optimize and enhance the value we bring to our clients and partners doing so with the support of our unwavering culture of governance,ethics and responsible use of data and technology.Leading with ethicsUnderpinnin
59、g our drive to innovate is our commitment to doing whats right.We consistently lead by example,ensuring that our teams understand that as we compete towin,thewayweachieveourgoalsisjustasimportant as the outcome.Recognition of leading ethical business practices is hard-won.Its earned by a commitment
60、to operating with transparency,good governance and integrity.Im proud that,for seven years running,BMO has been recognized as one of the Worlds Most Ethical Companies by Ethisphere,a global leader indefiningandadvancingthestandardsofethicalbusinesspractices.This year,BMO was again the only bank in C
61、anada and one of only four worldwide to be honoured.We encourage our employees to speak up when something doesnt seem right.BMOs Code of Conduct underpins Darryl WhiteAt BMO,we believe that the prosperity of our customers,colleagues and the communities we serve is integral to who we are and what we
62、do.When they succeed,we succeed.1 Formoreinformation, BMO Financial Group 207th Annual Report 2024Financial PerformanceEarnings Per Share Growth(%)Return on Equity(%)Net Income(C$billions)Reported Adjusted2 Reported Adjusted2 Reported Adjusted29.79.86.212.62024202332.127.42.68.010.211.31-year3-year5
63、-year202420238.74.47.37.4Total Shareholder Return5(%)BMO S&P/TSXCompositeIndex(10.7)65.1(18.0)(71.2)202420232024 financial performance3-year3 financial performanceReportedAdjusted2ReportedAdjusted2EPS growth of 7%to 10%65.1%(18.0)%(6.3)%(9.3)%ROE of 15%or more9.7%9.8%12.9%12.5%ROTCE of 18%or more13.
64、5%13.1%15.7%15.3%Operating leverage2 of 2%or more19.8%1.6%0.4%(1.3)%Capital ratios that exceed regulatory requirements13.6%CET1 Ratio4na1 Wehaveestablishedmedium-termfinancialobjectivesforcertainimportantperformancemeasures.Medium-termisgenerallydefinedasthreetofiveyears,andperformanceismeasuredonan
65、adjustedbasis.2 PriortoNovember1,2022,wepresentedadjustedrevenueonabasisnetofinsuranceclaims,commissionsandchangesinpolicybenefitliabilities(CCPB)andoperatingleverage was calculated based on revenue,net of CCPB.Beginning fiscal 2023,we no longer report CCPB,given the adoption and retrospective appli
66、cation of IFRS 17,Insurance Contracts(IFRS 17).Revenue,net of CCPB,was$34,393 million in fiscal 2022 and$25,787 million in fiscal 2021.Measures and ratios presented on a basis net of CCPB are non-GAAP amounts.For further information,see the Non-GAAP and Other Financial Measures section of Management
67、s Discussion and Analysis(MD&A).Regarding the composition of non-GAAP and other financial measures,including supplementary financial measures,refer to the Glossary of Financial Terms in the MD&A.3 The 3-year EPS growth rate and operating leverage,net of CCPB,reflect compound annual growth rates(CAGR
68、).4 The CET1 Ratio is disclosed in accordance with OSFIs Capital Adequacy Requirements(CAR)Guideline.5 As of October 31,2024.6 Percentages determined excluding results in Corporate Services.Certain comparative figures have been reclassified to conform with the current years presentation.Medium-termo
69、bjectives1BMO Financial Group 207th Annual Report 2024 7$1.41 trillion in total assets1817serving customers for 207 years and counting8th largest bank in North America by assetsNet Income by GeographyReportedCanada/Other 61%61%U.S.39%39%Adjusted2 Canadian P&C 43%U.S.P&C 23%BMO WM 15%BMO CM 19%Report
70、ed Net Income by Operating Group6A 196-year dividend recordBMO Financial Group has the longest-running dividend payout record of any company in Canada,at 196 years.BMO common shares had an annual dividend yield of 4.8%at October 31,2024.5.4%BMO 15-year8.6%BMO 5-yearCompound annual growth rate8 BMO F
71、inancial Group 207th Annual Report 2024Powering the economyAt BMO,were committed to making progress in everything we do.The success of our bank is directly linked to the long-term prosperity of our customers and communities,and to sustained economic growth.We offer specialized products and accessibl
72、e services to individuals,families,entrepreneurs,small businesses,large corporations and governments all with the aim of helping economies thrive.BMOprovidesaccesstocapitalandvaluablefinancialexpertiseinvestinginbusinesses,supporting homeownership and strengthening the communities we serve,while dri
73、ving innovation that makes banking easier.Were enabling realfinancialprogressforcustomersandclientsthroughOneClientleadership,which means delivering best-in-class,holistic experiences and bringing the power of our whole bank to each and every client because when they succeed,we all succeed.REAL FINA
74、NCIAL PROGRESSWorld Finance magazine recognizedBMOwithfiveawards in 2024:Best Commercial Bank in U.S.for the 2nd consecutive yearBest Retail Bank in Canadafor the 3rd consecutive year Best Commercial Bank in Canadafor the 10th consecutive yearBest Private Bank in Canadafor the 14th consecutive yearB
75、est Private Bank in U.S.for the 2nd consecutive yearBMO Financial Group 207th Annual Report 2024 9BMO purchased over$8.05 billion of goods and servicesfrom suppliers and vendors in Canada and the United States,as customers ourselves of many small and medium-sized businesses and other corporations.In
76、thefirst18months,wedelivered$12.9 billion of our more than US$40 billion BMOEMpower2.0five-yearcommitmenttohelpunderservedcommunities,businessesandfamiliesintheU.S.makerealfinancialprogressprovidingaccesstojobsandentrepreneurship,homeownershipandbuildinggenerational wealth.With$683 billion of loanso
77、utstanding,BMOprovidesfinancingtoawide variety of customers,clients,sectors and industries.Whether its buying a home or expanding a multinational business,were helping customers make realfinancialprogressastheyworktoachieve their goals.BMO has been theOfficialBankoftheCanadianDefenceCommunitysince 2
78、008,and we are committed to understanding and supporting the unique needs of Veterans and military families.The bank was also named a VETS Indexes 4-Star Employer for 2024 in the U.S.for our strong recruitment partnerships with National Able Network,RecruitMilitary,Hire Our Heroes,Wounded Warriors,H
79、ire Heroes USA and Army PaYS,along with the employee-led efforts of the BMO Veterans Advisory Council to support Reservists,Veterans and military families.Recognized asBest Metals&Mining Investment Bank of the Yearby Global Finance magazine for the 15th consecutive year.Maintained aleadership positi
80、on in exchange-traded fundsnetflows,withsixnewETFslaunched including the BMO Gold Bullion ETF,making the precious metals market accessible to more clients.10 BMO Financial Group 207th Annual Report 202410 BMO Financial Group 207th Annual Report 2024Stronger insights and agile decision-making BMOs Di
81、gital First strategy is focused on delivering speed and scale to enable progress for our customers,unlock the power of our people,and harness the potentialofemergingtechnologieslikeartificialintelligence(AI)andquantumcomputingalltodriveleadingloyalty,growthandefficiency.Were leading the way as a dig
82、itally enabled,future-ready bank with innovative products and services like our BMO Cash Track Insight,which was built in-house andusesAIandmachinelearningmodelstohelpcustomersimprovetheirfinancialwell-being.This free feature within our mobile banking app offers customers a personalized picture of t
83、heir day-to-day spending as well as real-time insights.We deliver award-winning applications like the BMO Digital Workbench,which provides real-time analytics and reporting to multiple businesses within the bank,facilitating insightful customer conversations and transforming pricing and product mix
84、strategies.BMO invests in sponsorships and partnerships and provides thought leadership to organizations and tech accelerators across North America,including the Vector Institute,Creative Destruction Lab and NEXT AI.Were proud to be consistently recognized for our leadership and achievements.Its a t
85、estament to our employees,our innovative culture,and our ongoing commitment to creating excellent digital experiences for our customers,colleagues and communities.PROGRESS IN INNOVATION BMO became the 1st bank in Canada and the U.S.to be honoured with Red Dots Design Concept award one of the most so
86、ught-after recognitions for exceptional design in the Interaction,UI and User Experience Design Concept category.Guided by direct feedback from clients,BMO reimagined the business banking experience,creating a simpler,more intuitive digital user interface that helps clients get more done in less tim
87、e so they can focus on whats important:growing their business.Recognized onFast Companys list of the Worlds Most Innovative Companies of 2024 the only Canadian and U.S.bank out of more than 600 winning organizations.Recognized with Digital customer experience awards from The Digital Banker for our l
88、eadership in digital innovation and helping customers make financialprogress.J.D.Power2024CanadaWealthManagementDigital Experience StudyBMO was ranked#1 in Satisfaction with the Wealth Management Digital Experience amongFull-ServiceInvestorsintheJ.D.Power2024CanadaWealthManagementDigital Experience
89、Study.BMO Financial Group 207th Annual Report 2024 11Our commitment to helping build an inclusive societyIn addition to helping individuals,families and businesses makerealfinancialprogress,BMOisalsocommittedtostrengthening the communities where we live and work.Our Zero Barriers to Inclusion 2025 s
90、trategy focuses on providing access to opportunities and enabling the growth of our colleagues,customers and communities.Our Climate Ambition is to be our clients lead partner in the transition to a net zero world and to support them in their transition with specializedfinancialproducts,servicesanda
91、dvice.Andwepartner with community organizations to promote inclusive local economic opportunities across our footprint.BMO proudly supports our employees volunteer activities and donations.Andthatsupportisreflectedinouraward-winningEmployee Giving Campaign a testament to the culture of giving weve c
92、reated.PROGRESS FOR STRONGER COMMUNITIESNamed one of the Worlds Most Ethical Companies for the 7th consecutive year byEthisphere,agloballeaderindefining and advancing the standards of ethical business practices.This year,BMO was again the only bank in Canada and one of only four worldwide to be hono
93、ured.Our industry-leading annualEmployee Giving Campaign raised$31 million for charities across Canada and the U.S.,with 88%of employees participating.Of this,over$13 million was directed to our strategic partner,the United Way,for their work strengthening the resilience of communities and the agenc
94、ies that support them.Because we know that when communities thrive,economies thrive.Marked the20th anniversary of BMOs Equity Through Education Program.Every year,BMO donates one days institutional equity,BMO InvestorLine equity and ETF trading commissions to charitable organizations that provide st
95、udents with educational opportunities they might not otherwise have.The program has raised over$33 million to date,empowering close to 5,500 students to unlock their potential through scholarships,bursaries,mentoring and development opportunities.12 BMO Financial Group 207th Annual Report 2024 Execu
96、tive Committee Board of DirectorsGeorge A.Cope,C.M.Corporate DirectorBoard ChairCommittees:Governance and Nominating,Human Resources Director since:2006Janice M.Babiak,CPA(US),CA(UK),CISM,CISA Corporate Director Committees:Audit and Conduct Review(Chair),Governance and Nominating Director since:2012
97、Craig W.BroderickCorporate Director Committees:Audit and Conduct Review,Governance and Nominating,Risk Review(Chair)Director since:2018Hazel Claxton Corporate Director Committees:Audit and Conduct Review Director since:2023Diane CooperCorporate Director Committees:Audit and Conduct Review1,Risk Revi
98、ew1 Director since:2024Stephen DentManaging Director and Co-Founder,Birch Hill Equity Partners Committees:Risk Review Director since:2021Christine A.Edwards Corporate Director Committees:Governance and Nominating(Chair),Human Resources Director since:2010Dr.Martin S.Eichenbaum Charles Moskos Profess
99、or of Economics,Northwestern University Committees:Audit and Conduct Review,Risk Review Director since:2015David HarquailChair of the Board,Franco-Nevada Corporation Committees:Human Resources,Risk ReviewDirector since:2018Eric R.La Flche President and Chief Executive Officer,Metro Inc.Committees:Hu
100、man Resources Director since:2012Brian McManus Executive Chair,Polycor Inc.Committees:Risk Review Director since:2024Lorraine Mitchelmore Corporate DirectorCommittees:Governance and Nominating,Human Resources(Chair),Risk Review Director since:2015Madhu Ranganathan Executive Vice-Presidentand Chief F
101、inancial Officer,OpenText CorporationCommittees:Audit and Conduct Review Director since:2021 Darryl White Chief Executive Officer,BMO Financial Group Director since:2017 Darryl WhiteChief Executive OfficerPiyush AgrawalChief Risk OfficerDarrel HackettU.S.Chief Executive OfficerSharon Haward-LairdGen
102、eral CounselNadim HirjiGroup Head,BMO Commercial Bank,North America and Co-Head,Personal and Commercial BankingErnie(Erminia)JohannsonGroup Head,North American Personal&Business Banking and Co-Head,Personal and Commercial BankingDeland KamangaGroup Head,BMO Wealth ManagementMona MaloneChief Human Re
103、sources Officer and Head,People,Culture and BrandAlan TannenbaumChief Executive Officer and Group Head,BMO Capital MarketsSteve TennysonChief Technology and Operations OfficerTayfun TuzunChief Financial Officer1 Effective December 6,2024 MD&A Enhanced Disclosure Task ForceThe Enhanced Disclosure Tas
104、k Force(EDTF)was established by the Financial Stability Board to provide guidance and recommendations for bestpractice risk disclosures for banks.We have adopted these recommendations at BMO in order to prepare and deliver high-quality,transparentrisk disclosures.The index below details these recomm
105、endations and references the presentation of the disclosures in our 2024 Annual Report,Supplementary Financial Information(SFI)and Supplementary Regulatory Capital Information(SRCI).Information on BMOs website,includinginformation within the SFI or SRCI,is not,and should not be considered to be,inco
106、rporated by reference into this 2024 Annual Report.TopicEDTF DisclosurePage numberAnnual ReportSFISRCIGeneral1.Risk-related information in each report,including an index for easy navigation68-109IndexIndex2.Risk terminology,measures and key parameters72-109,117-1193.Top and emerging risks68-704.Plan
107、s to meet new key regulatory ratios once applicable rules are finalized62Risk Governance,Risk Management andBusiness Model5.Risk management and governance framework,processes and key functions72-766.Risk culture,risk appetite and procedures to support the culture767.Risks that arise from business mo
108、dels and activities74-758.Stress testing within the risk governance and capital frameworks76Capital Adequacy andRisk-Weighted Assets(RWA)9.Pillar 1 capital requirements60-635-6,1510.Composition of capital components and reconciliation of the accountingbalance sheet to the regulatory balance sheet.A
109、main features template canbe found at:Regulatory Disclosure63-645-7,17-1811.Flow statement of movements in regulatory capital,including changes inCommon Equity Tier 1 Capital,Additional Tier 1 Capital and Tier 2 Capital812.Capital management and strategic planning59,65-6613.Risk-weighted assets(RWA)
110、by operating group641614.Analysis of capital requirements for each method used in calculating RWA63-64,77-8016,23-50,56-68,87-9215.Tabulate credit risk in the banking book for Basel asset classes andmajor portfolios23-50,52-68,90-9216.Flow statement that reconciles movements in RWA by credit risk an
111、d marketrisk51,8417.Basel validation and back-testing process,including estimated and actual lossparameter information103-10493-95Liquidity18.Management of liquidity needs and liquidity reserve held to meet thoseneeds91-97Funding19.Encumbered and unencumbered assets disclosed by balance sheet catego
112、ry934420.Consolidated total assets,liabilities and off-balance sheet commitments byremaining contractual maturity98-9921.Analysis of funding sources and funding strategy94-95Market Risk22.Linkage of trading and non-trading market risk to the consolidated balancesheet8923.Significant trading and non-
113、trading market risk factors85-8924.Market risk model assumptions,validation procedures and back-testing85-89,10425.Primary techniques for risk measurement and risk assessment,including riskof loss85-89Credit Risk26.Analysis of credit risk profile,exposures and concentration77-84,148-15524-4116-8227.
114、Policies to identify impaired loans and renegotiated loans148-150,15528.Reconciliation of opening and closing balances of impaired loans andallowance for credit losses83,15129.Counterparty credit risk arising from derivative transactions77-78,84,167-16856-7430.Credit risk mitigation77-78,150,159,200
115、-20122,52-53,69Other Risks31.Discussion of other risks72-74,100-10932.Publicly known risk events involving material or potentially material lossevents100-109BMO Financial Group 207th Annual Report 2024 13Managements Discussion and AnalysisBMOs Chief Executive Officer and Chief Financial Officer have
116、 signed a statement outlining managements responsibility for financial information inthe audited annual consolidated financial statements and Managements Discussion and Analysis(MD&A).The statement also explains the roles ofthe Audit and Conduct Review Committee and Board of Directors in respect of
117、that financial information.The MD&A comments on our operations and financial condition for the years ended October 31,2024 and 2023.The MD&A should be read inconjunction with the audited annual consolidated financial statements for the year ended October 31,2024.The MD&A commentary is as atDecember
118、4,2024.Unless otherwise indicated,all amounts are stated in Canadian dollars and have been derived from audited annual consolidatedfinancial statements prepared in accordance with International Financial Reporting Standards(IFRS)as issued by the International AccountingStandards Board.We also comply
119、 with interpretations of IFRS by our regulator,the Office of the Superintendent of Financial Institutions(OSFI).References to generally accepted accounting principles(GAAP)mean IFRS.Index15Caution Regarding Forward-Looking Statements16About BMO17Financial Objectives and Value Measures20Financial Hig
120、hlights21Non-GAAP and Other Financial Measures25Economic Developments and Outlook262024 Financial Performance Review332024 Operating Groups Performance Review33Summary34Personal and Commercial Banking35Canadian Personal and Commercial Banking39U.S.Personal and Commercial Banking43BMO Wealth Manageme
121、nt47BMO Capital Markets50Corporate Services,including Technology and Operations52Summary Quarterly Earnings Trends53Review of Fourth Quarter 2024 Performance552023 Financial Performance Review57Financial Condition Review57Summary Balance Sheet59Enterprise-Wide Capital Management66Off-Balance Sheet A
122、rrangements68Enterprise-Wide Risk Management110Accounting Matters and Disclosure and Internal Control110Critical Accounting Estimates and Judgments113Changes in Accounting Policies in 2024113Future Changes in Accounting Policies114Other Regulatory Developments114Transactions with Related Parties115S
123、hareholders Auditors Services and Fees116Managements Annual Report on Disclosure Controls and Proceduresand Internal Control over Financial Reporting117Supplemental Information125Glossary of Financial TermsRegulatory FilingsBMOs continuous disclosure materials,including our interim consolidated fina
124、ncial statements and interim MD&A,audited annual consolidated financial statements andannual MD&A,Annual Information Form and Notice of Annual Meeting of Shareholders and Management Proxy Circular,are available on our website at the Canadian Securities Administrators website at www.sedarplus.ca and
125、on the EDGAR section of the U.S.Securities and Exchange Commissions(SEC)website at www.sec.gov.BMOs Chief Executive Officer and Chief Financial Officer certify the appropriateness and fairness of BMOs annual and interim consolidatedfinancial statements,annual MD&A and Annual Information Form,the eff
126、ectiveness of BMOs disclosure controls and procedures and the effectiveness of,and any materialweaknesses relating to,BMOs internal control over financial reporting.Information contained in,or otherwise accessible through,our website()or anythird-party websites mentioned herein,does not form part of
127、 this document.CautionThe About BMO,Financial Objectives and Value Measures,Economic Developments and Outlook,Provision for Income Taxes and Other Taxes,2025 Areas of Focus,BusinessEnvironment and Outlook,Enterprise-Wide Capital Management,Off-Balance Sheet Arrangements,Enterprise-Wide Risk Manageme
128、nt,Future Changes in AccountingPolicies and Other Regulatory Developments sections contain certain forward-looking statements.By their nature,forward-looking statements require us to makeassumptions and are subject to inherent risks and uncertainties.Refer to the Caution Regarding Forward-Looking St
129、atements section for a discussion of such risks anduncertainties and the material factors and assumptions related to the statements set forth in such sections.14 BMO Financial Group 207th Annual Report 2024 MD&A MD&A Factors That May Affect Future ResultsAs noted in the following Caution Regarding F
130、orward-Looking Statements section,all forward-looking statements and information,by their nature,are subject to inherent risks and uncertainties,both general and specific,which may cause actual results to differ materially from the expectationsexpressed in any forward-looking statement.The Enterpris
131、e-Wide Risk Management section describes a number of risks,including credit andcounterparty,market,insurance,liquidity and funding,operational non-financial,legal and regulatory,strategic,environmental and social,andreputation risk.Should our risk management framework prove ineffective,there could b
132、e a material impact on our financial position and results.Caution Regarding Forward-Looking StatementsBank of Montreals public communications often include written or oral forward-looking statements.Statements of this type are included in this document,and may beincluded in other filings with Canadi
133、an securities regulators or the U.S.Securities and Exchange Commission,or in other communications.All such statements are madepursuant to the“safe harbor”provisions of,and are intended to be forward-looking statements under,the United States Private Securities Litigation Reform Act of 1995and any ap
134、plicable Canadian securities legislation.Forward-looking statements in this document may include,but are not limited to,statements with respect to ourobjectives and priorities for fiscal 2025 and beyond,our strategies or future actions,our targets and commitments(including with respect to net zero e
135、missions),expectations for our financial condition,capital position,the regulatory environment in which we operate,the results of,or outlook for,our operations or the Canadian,U.S.and international economies,and include statements made by our management.Forward-looking statements are typically ident
136、ified by words such as“will”,“would”,“should”,“believe”,“expect”,“anticipate”,“project”,“intend”,“estimate”,“plan”,“goal”,“commit”,“target”,“may”,“might”,“schedule”,“forecast”,“outlook”,“timeline”,“suggest”,“seek”and“could”or negative or grammatical variations thereof.By their nature,forward-looking
137、 statements require us to make assumptions and are subject to inherent risks and uncertainties,both general and specific in nature.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 res
138、ultsmay differ materially from such predictions,forecasts,conclusions or projections.We caution readers of this document not to place undue reliance on our forward-lookingstatements,as a number of factors many of which are beyond our control and the effects of which can be difficult to predict could
139、 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 t
140、o:general economic and marketconditions in the countries in which we operate,including labour challenges and changes in foreign exchange and interest rates;changes to our credit ratings;cyber andinformation security,including the threat of data breaches,hacking,identity theft and corporate espionage
141、,as well as the possibility of denial of service resulting fromefforts targeted at causing system failure and service disruption;technology resilience,innovation and competition;failure of third parties to comply with their obligationsto us;political conditions,including changes relating to,or affec
142、ting,economic or trade matters;disruption of global supply chains;environmental and social risk,includingclimate change;the Canadian housing market and consumer leverage;inflationary pressures;changes in laws,including tax legislation and interpretation,or in supervisoryexpectations or requirements,
143、including capital,interest rate and liquidity requirements and guidance,and the effect of such changes on funding costs and capitalrequirements;changes in monetary,fiscal or economic policy;weak,volatile or illiquid capital or credit markets;the level of competition in the geographic and businessare
144、as in which we operate;exposure to,and the resolution of,significant litigation or regulatory matters,the appeal of favourable outcomes and our ability to successfullyappeal adverse outcomes of such matters and the timing,determination and recovery of amounts related to such matters;the accuracy and
145、 completeness of theinformation we obtain with respect to our customers and counterparties;our ability to execute our strategic plans,complete proposed acquisitions or dispositions andintegrate acquisitions,including obtaining regulatory approvals,and realize any anticipated benefits from such plans
146、 and transactions;critical accounting estimates andjudgments,and the effects of changes in accounting standards,rules and interpretations on these estimates;operational and infrastructure risks,including with respect toreliance on third parties;global capital markets activities;the emergence or cont
147、inuation of widespread health emergencies or pandemics,and their impact on local,national or international economies,as well as their heightening of certain risks that may affect our future results;the possible effects on our business of war or terroristactivities;natural disasters,such as earthquak
148、es and flooding,and disruptions to public infrastructure,such as transportation,communications,power or water supply;andour ability to anticipate and effectively manage risks arising from all of the foregoing factors.We caution that the foregoing list is not exhaustive of all possible factors.Other
149、factors and risks could adversely affect our results.For more information,please referto the discussion in the Risks That May Affect Future Results section,and the sections related to credit and counterparty,market,insurance,liquidity and funding,operational non-financial,legal and regulatory,strate
150、gic,environmental and social,and reputation risk in the Enterprise-Wide Risk Management section,as updated byquarterly reports,all of which outline certain key factors and risks that may affect our future results.Investors and others should carefully consider these factors and risks,as well as other
151、 uncertainties and potential events,and the inherent uncertainty of forward-looking statements.We do not undertake to update any forward-lookingstatements,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 inf
152、ormationcontained in this document is presented for the purpose of assisting shareholders and analysts in understanding our financial position as at and for the periods ended onthe dates presented,as well as our strategic priorities and objectives,and may not be appropriate for other purposes.Materi
153、al economic assumptions underlying the forward-looking statements contained in this document include those set out in the Economic Developments andOutlook section,and the Allowance for Credit Losses section,as updated by quarterly reports.Assumptions about the performance of the Canadian and U.S.eco
154、nomies,aswell as overall market conditions and their combined effect on our business,are material factors we consider when determining our strategic priorities,objectives andexpectations for our business.In determining our expectations for economic growth,we primarily consider historical economic da
155、ta,past relationships between economicand financial variables,changes in government policies,and the risks to the domestic and global economy.BMO Financial Group 207th Annual Report 2024 15MANAGEMENTS DISCUSSION AND ANALYSISAbout BMOEstablished in 1817,BMO Financial Group(BMO,Bank of Montreal,the ba
156、nk,we,our,us)is the eighth largest bank in North America by assets,withtotal assets of$1.41 trillion.We are a highly diversified financial institution providing a broad range of personal and commercial banking,wealthmanagement,global markets and investment banking products and services.We serve thir
157、teen million customers across North America,and in selectmarkets globally,through three integrated operating groups:Personal and Commercial Banking,BMO Wealth Management and BMO Capital Markets.At BMO,we continue to build a high-performing,digitally-enabled,future-ready bank with engaged employees a
158、nd a winning culture.We arefocused on helping our customers make real financial progress,and on financing our clients growth and innovation,while also investing in ourworkforce.Anchored by our Purpose,we are driven by our strategic priorities for growth,strengthened by our approach to sustainability
159、 and guidedby our values as we build a foundation of trust with our colleagues,customers and communities.Our Purpose:Boldly Grow the Good in business and lifeBMO has a deep sense of purpose to be a champion of progress and a catalyst for change.We are leveraging our position as a leading financialse
160、rvices provider in order to create opportunities for our colleagues,customers and communities to make positive,sustainable change because webelieve that success can and must be mutual.Thriving economy Providing access to capital and valuable financial advice investing in businesses,supporting home o
161、wnership andstrengthening the communities we serve,while driving innovation that makes banking easier.Sustainable future Being our clients lead partner in the transition to a net zero world,as well as delivering on our commitment to sustainablefinancing and responsible investing.Inclusive society Co
162、mmitting to zero barriers to inclusion through investments,financial products and services,and partnerships that removesystemic barriers for under-represented customers,employees and communities and drive inclusion and equitable growth for everyone.Our Strategic PrioritiesWe aim to achieve our finan
163、cial objectives by aligning our operations with,and executing on,our strategic priorities.Our group strategic prioritiesalign with and support our enterprise-wide strategy,positioning us well to achieve competitive performance.World-class loyalty and growth,powered by One Client leadership,bringing
164、the full suite of BMOs products,services and advice to our clients.Winning culture driven by alignment,empowerment and recognition.Digital First for speed,scale and the elimination of complexity.Be our clients lead partner in the transition to a net zero world.Superior management of risk,capital and
165、 funding performance.The operating group strategies are outlined in the 2024 Operating Groups Performance Review.Our Approach to SustainabilityOur commitment to sustainability is embedded in our strategy and is fundamental to our Purpose.We identify the most significant effects of ourbusiness operat
166、ions,products and services on interested parties and the communities in which we operate.We take steps to manage our business ina manner that is consistent with our sustainability objectives,considering our impact on communities,society and interested parties.We apply avariety of sustainability prac
167、tices and benchmarks to capture opportunities and manage risks in key areas,including sustainable finance,climatechange,human rights,diversity,equity and inclusion.Our ValuesFour core values shape our culture and underpin our choices and actions:IntegrityDiversityResponsibilityEmpathyCautionThis Abo
168、ut BMO section contains forward-looking statements.Please refer to the Caution Regarding Forward-Looking Statements.16 BMO Financial Group 207th Annual Report 2024 MD&A MD&A Financial Objectives and Value MeasuresResults and measures in this section are presented on a reported and an adjusted basis,
169、and management considers both of these to be useful inassessing our performance.We believe that the non-GAAP measures and ratios presented here,read together with our GAAP results,provide readerswith a better understanding of how management assesses results and are a reflection of ongoing business p
170、erformance.Adjusted results and measures in this section,including earnings per share(EPS),EPS growth,return on equity(ROE),return on tangible commonequity(ROTCE),net income,revenue,non-interest expense,efficiency ratio and operating leverage,are non-GAAP amounts,measures and ratios,andare discussed
171、 in the Non-GAAP and Other Financial Measures section.Information regarding the composition of each of these measures is provided in the Glossary of Financial Terms.Financial ObjectivesBMO has established medium-term financial objectives for certain important performance measures,which are set out b
172、elow.Medium-term isgenerally defined as three to five years,and performance is assessed on an adjusted basis.These objectives serve as guideposts and assume anormal business environment and credit cycle.We aim to deliver top-tier total shareholder return and achieve our financial objectives by align
173、ing ouroperations with,and executing on,our strategic priorities.Our business planning process is rigorous,sets ambitious goals and considers factors such as the prevailing economic environment,our riskappetite,customers evolving needs and opportunities available across our operating groups.It inclu
174、des clear and direct accountability for annualperformance that is measured against both internal and external benchmarks and progress toward our strategic priorities.We seek a balancebetween current profitability and investing to create sustainable growth.Our ability to achieve these objectives may
175、be affected by changes in theeconomic,business or regulatory environment or extraordinary developments.BMOs results in fiscal 2024 were impacted by higher provisions for credit losses,in part due to a prolonged period of high interest rates,whichalso contributed to a more challenging U.S.banking mar
176、ket.Higher credit provisions more than offset our strong expense management.As a result,BMO did not achieve several of its medium-term financial objectives on an adjusted basis.Although an ROE of 15%will be challenging to meet in thenear term,in an environment where credit losses decline from elevat
177、ed levels,we believe it to be an appropriate medium-term financial objective aswe execute our strategic plan to enhance the efficiency and profitability of our business.BMO has delivered positive operating leverage in four of thelast five years.Our financial objectives and our performance against th
178、ese objectives are outlined in the table below and described in the sectionsthat follow.Table 1Financial objectives(adjusted)Reported basisAdjusted basis(1)As at and for the periods ended October 31,20241-year 3-year(2)(3)5-year(2)(3)1-year 3-year(2)(3)5-year(2)(3)Earnings per share growth(%)7-10%65
179、.1(6.3)1.9(18.0)(9.3)0.5Average return on equity(%)15%or more9.712.912.79.812.512.9Average return on tangible common equity(%)18%or more13.515.715.213.115.315.4Operating leverage(%)(2)2%or more19.80.41.71.6(1.3)1.0Common Equity Tier 1 Ratio(%)Exceed regulatory requirement13.6nananananaTotal sharehol
180、der return(%)Top-tier27.42.610.2nanana(1)Adjusted results and measures are non-GAAP amounts and measures and are discussed in the Non-GAAP and Other Financial Measures section.(2)Prior to November 1,2022,we presented adjusted revenue on a basis net of insurance claims,commissions and changes in poli
181、cy benefit liabilities(CCPB)and operating leverage was calculatedbased on revenue,net of CCPB.Beginning fiscal 2023,we no longer report CCPB,given the adoption and retrospective application of IFRS 17,Insurance Contracts(IFRS 17).Revenue,net of CCPB,was$34,393 million in fiscal 2022 and$25,787 milli
182、on in fiscal 2021.Measures and ratios presented on a basis net of CCPB are non-GAAP amounts.(3)The 3-year and 5-year EPS growth rate and operating leverage,net of CCPB,reflect compound annual growth rates(CAGR).na not applicableCertain comparative figures have been reclassified for changes in accoun
183、ting policy.Earnings per Share GrowthAll references to earnings per share(EPS)are to diluted EPS,unless otherwise indicated.EPS was$9.51 in fiscal 2024,an increase of$3.75 or 65%from$5.76 in fiscal 2023.Adjusted EPS was$9.68,a decrease of$2.13 or 18%from$11.81 in fiscal 2023.EPS reflected higher ear
184、nings on a reported basis andlower earnings on an adjusted basis,as well as a higher number of common shares outstanding.Net incomeavailable to common shareholders increased 69%year-over-year on a reported basis and decreased 16%on anadjusted basis.The average number of diluted common shares outstan
185、ding increased 3%from fiscal 2023,reflecting common shares issued during the year under the Shareholder Dividend Reinvestment and SharePurchase Plan(DRIP).Certain comparative figures have been reclassified for changes in accounting policy.EPS($)Reported EPSAdjusted EPS202420239.515.769.6811.81Earnin
186、gs per Share(EPS)is calculated by dividing net income available to common shareholders,afterdeducting preferred share dividends and distributions on other equity instruments,by the average number ofcommon shares outstanding.Adjusted EPS is calculated in the same manner,using adjusted net incomeattri
187、butable to common shareholders.Diluted EPS,which is BMOs basis for measuring performance,adjustsfor possible conversions of financial instruments into common shares if those conversions would reduce EPS,and is more fully explained in Note 24 of the audited annual consolidated financial statements.BM
188、O Financial Group 207th Annual Report 2024 17MANAGEMENTS DISCUSSION AND ANALYSISReturn on Equity and Return on Tangible Common EquityReported return on equity(ROE)was 9.7%in fiscal 2024 and adjusted ROE was 9.8%,compared with 6.2%and 12.6%,respectively,in fiscal 2023.Reported ROE increased due to hi
189、gher net income,partially offset by anincrease in average common shareholders equity.Adjusted ROE decreased due to lower adjusted net income andan increase in average common shareholders equity.There was an increase of$2,838 million in reported net income available to common shareholders and adecrea
190、se of$1,338 million in adjusted net income available to common shareholders in the current year,primarily due to higher provisions for credit losses.Average common shareholders equity increased$5.4 billionor 8%from fiscal 2023,primarily due to the issuance of common shares under the DRIP,an increase
191、 inaccumulated other comprehensive income and growth in retained earnings.Reported return on tangible common equity(ROTCE)was 13.5%,compared with 8.4%in fiscal 2023,andadjusted ROTCE was 13.1%,compared with 16.3%in fiscal 2023.Reported ROTCE increased due to higherearnings,partially offset by higher
192、 tangible common equity,and adjusted ROTCE decreased due to lower adjustedearnings and higher tangible common equity.Book value per share increased 9%from the prior year to$104.40,reflecting the increase in shareholders equity.Certain comparative figures have been reclassified for changes in account
193、ing policy.ROE(%)Adjusted20242023Reported6.29.712.69.8ROTCE(%)20242023Reported8.413.5Adjusted16.313.1Return on Common Shareholders Equity(ROE)is calculated as net income,less preferred dividends anddistributions on other equity instruments,as a percentage of average common shareholders equity.Common
194、shareholders equity comprises common share capital,contributed surplus,accumulated other comprehensiveincome(loss)and retained earnings.Adjusted ROE is calculated using adjusted net income rather thanreported net income.Return on Tangible Common Equity(ROTCE)is calculated as net income available to
195、common shareholders,adjusted for the amortization of acquisition-related intangible assets,as a percentage of average tangiblecommon equity.Average tangible common equity comprises common shareholders equity,less goodwill andacquisition-related intangible assets,net of related deferred tax liabiliti
196、es.Adjusted ROTCE is calculated usingadjusted net income rather than reported net income.Efficiency Ratio and Operating LeverageBMOs reported efficiency ratio was 59.5%in fiscal 2024,compared with 72.2%in fiscal 2023.Adjusted efficiencyratio(1)was 58.6%,compared with 59.5%in fiscal 2023.The decrease
197、 in the reported efficiency ratio reflectedrevenue growth and lower expenses,and the decrease in the adjusted efficiency ratio reflected revenue growthin excess of expense growth.Reported operating leverage was 19.8%in fiscal 2024,compared with negative 43.7%in fiscal 2023,andadjusted operating leve
198、rage was 1.6%in fiscal 2024,compared with negative 7.6%in fiscal 2023.(1)Prior to November 1,2022,we presented adjusted revenue on a basis net of insurance claims,commissions and changes in policy benefit liabilities(CCPB).Beginning the first quarter of fiscal 2023,we no longer report CCPB,given the
199、 adoption and retrospective application of IFRS 17,InsuranceContracts(IFRS 17).For periods prior to November 1,2022,operating leverage was calculated based on revenue,net of CCPB.Revenue,net of CCPB,was$34,393 million in fiscal 2022.Measures and ratios presented on a basis net of CCPB are non-GAAP a
200、mounts.For further information,refer to theNon-GAAP and Other Financial Measures section.Reported Efficiency RatioAdjusted Efficiency RatioEfficiency Ratio(%)2024202359.558.672.259.520242023Operating Leverage(%)Adjusted1.6(7.6)Reported(43.7)19.8Efficiency Ratio(or expense-to-revenue ratio)is a measu
201、re of productivity.It is a percentage calculated asnon-interest expense divided by total revenue(on a taxable equivalent basis in the operating groups).Operating Leverage is the difference between the growth rates of revenue and non-interest expense.Adjusted operating leverage is calculated using ad
202、justed revenue and adjusted non-interest expense.18 BMO Financial Group 207th Annual Report 2024 MD&A MD&A Common Equity Tier 1 RatioOur Common Equity Tier 1(CET1)Ratio was 13.6%as at October 31,2024,compared with 12.5%as atOctober 31,2023.Our CET1 Ratio increased from the prior year,primarily as a
203、result of internal capital generation,common shares issued under the DRIP and lower source-currency risk-weighted assets(RWA).There was apositive impact to the ratio from the reversal of a fiscal 2022 legal provision associated with a predecessor bank,M&I Marshal and Ilsley Bank,which increased inte
204、rnal capital generation and reduced RWA.CET1 Ratio(%)2023202412.513.6Common Equity Tier 1(CET1)Ratio is calculated as CET1 Capital,which comprises common shareholdersequity,including applicable contractual service margin,net of deductions for goodwill,intangible assets,pension assets,certain deferre
205、d tax assets and other items(which may include a portion of expected creditloss provisions or shortfall in allowances),divided by risk-weighted assets.The CET1 Ratio is calculated inaccordance with OSFIs Capital Adequacy Requirements(CAR)Guideline.Total Shareholder ReturnTABLE 2For the year ended Oc
206、tober 31202420232022202120203-yearCAGR(1)5-yearCAGR(1)Closing market price per common share($)126.88104.79125.49134.3779.33(1.9)5.4Dividends paid($per share)6.045.725.114.244.2112.58.6Dividend yield(%)4.85.54.33.25.3nmnmIncrease(decrease)in share price(%)21.1(16.5)(6.6)69.4(18.6)nmnmTotal annual sha
207、reholder return(%)(2)27.4(12.5)(3.1)75.9(14.6)2.610.2Canadian peer group average(excluding BMO)(3)49.4(8.8)(6.2)56.1(11.5)7.911.6(1)Compound annual growth rate(CAGR)expressed as a percentage.(2)Total annual shareholder return assumes reinvestment of quarterly dividends and therefore does not equal t
208、he sum of dividend and share price returns in the table.(3)As at October 31,2024.Canadian peer group:The Bank of Nova Scotia,Canadian Imperial Bank of Commerce,National Bank of Canada,Royal Bank of Canada,and The Toronto-Dominion Bank.nm not meaningfulCertain comparative figures have been reclassifi
209、ed for changes in accounting policy.The average annual total shareholder return(TSR)is a key measure of shareholder value and we expect that execution on our strategic priorities willdrive value creation for our shareholders.The one-year,three-year and five-year average annual TSR was 27.4%,2.6%and
210、10.2%,respectively,compared with our Canadian peer group average(excluding BMO)of 49.4%,7.9%and 11.6%,respectively.The table above summarizes dividends paid on BMOs common shares over the past five years and the movements in our share price.An investment of$1,000 in BMO common shares made at the beg
211、inning of fiscal 2020 would have been worth$1,624 as at October 31,2024,assuming reinvestment of dividends,for a total return of 62.4%.Dividends declared per common share in fiscal 2024 totalled$6.12,an increase of$0.32 from$5.80 in the prior year.Dividends paid over afive-year period have increased
212、 at an average annual compound rate of approximately 9%.The annual Total Shareholder Return(TSR)represents the average annual total return earned on an investment in BMO common shares made atthe beginning of the respective period.The return includes the change in share price and assumes dividends re
213、ceived were reinvested inadditional common shares.CautionThis Financial Objectives and Value Measures section contains forward-looking statements.Please refer to the Caution Regarding Forward-Looking Statements.BMO Financial Group 207th Annual Report 2024 19MANAGEMENTS DISCUSSION AND ANALYSISFinanci
214、al HighlightsTABLE 3(Canadian$in millions,except as noted)20242023Summary Income Statement(1)(2)Net interest income19,46818,681Non-interest revenue13,32710,578Revenue32,79529,259Provision for credit losses on impaired loans3,0661,180Provision for credit losses on performing loans695998Total provisio
215、n for credit losses(PCL)3,7612,178Non-interest expense19,49921,134Provision for income taxes2,2081,510Net income7,3274,437Net income available to common shareholders6,9324,094Adjusted net income7,4498,735Adjusted net income available to common shareholders7,0548,392Common Share Data($,except as note
216、d)(1)Basic earnings per share9.525.77Diluted earnings per share9.515.76Adjusted diluted earnings per share9.6811.81Book value per share104.4095.90Closing share price126.88104.79Number of common shares outstanding(in millions)End of period729.5720.9Average basic727.7709.4Average diluted728.5710.5Mark
217、et capitalization($billions)92.675.5Dividends declared per share6.125.80Dividend yield(%)4.85.5Dividend payout ratio(%)64.3100.5Adjusted dividend payout ratio(%)63.149.0Financial Measures and Ratios(%)(1)(2)Return on equity9.76.2Adjusted return on equity9.812.6Return on tangible common equity13.58.4
218、Adjusted return on tangible common equity13.116.3Efficiency ratio59.572.2Adjusted efficiency ratio(3)58.659.5Operating leverage19.8(43.7)Adjusted operating leverage(3)1.6(7.6)Net interest margin on average earning assets1.571.63Adjusted net interest margin,excluding trading net interest income,and t
219、rading and insurance assets1.851.88Effective tax rate23.225.4Adjusted effective tax rate22.922.4Total PCL-to-average net loans and acceptances0.570.35PCL on impaired loans-to-average net loans and acceptances0.470.19Balance Sheet and Other Information(as at October 31,$millions,except as noted)Asset
220、s1,409,6471,347,006Average earning assets1,237,2451,145,870Gross loans and acceptances682,731668,583Net loans and acceptances678,375664,776Deposits982,440910,879Common shareholders equity76,16369,137Total risk-weighted assets(4)420,838424,197Assets under administration770,584808,985Assets under mana
221、gement422,701332,947Capital and Liquidity Measures(%)(4)Common Equity Tier 1 Ratio13.612.5Tier 1 Capital Ratio15.414.1Total Capital Ratio17.616.2Leverage Ratio4.44.2TLAC Ratio29.327.0Liquidity Coverage Ratio(LCR)132128Net Stable Funding Ratio(NSFR)117115Foreign Exchange Rates($)As at October 31,Cana
222、dian/U.S.dollar1.39091.3868Average Canadian/U.S.dollar1.35911.3492(1)Adjusted results exclude certain items from reported results and are used to calculate our adjusted measures as presented in the table above.Management assesses performance on a reported basisand an adjusted basis,and considers bot
223、h to be useful.For further information,refer to the Non-GAAP and Other Financial Measures section.For details on the composition of non-GAAP amounts,measures and ratios,as well as supplementary financial measures,refer to the Glossary of Financial Terms.(2)Effective the first quarter of fiscal 2024,
224、the bank adopted IFRS 17,Insurance Contracts(IFRS 17),recognizing the cumulative effect of adoption in opening retained earnings,and applied itretrospectively to fiscal 2023 results.For further information,refer to the Changes in Accounting Policies in 2024 section.(3)Prior to November 1,2022,we pre
225、sented adjusted revenue on a basis net of insurance claims,commissions and changes in policy benefit liabilities(CCPB).Beginning the first quarter of fiscal 2023,we no longer report CCPB,given the adoption and retrospective application of IFRS 17.For periods prior to November 1,2022,efficiency ratio
226、 and operating leverage were calculated based onrevenue,net of CCPB.Revenue,net of CCPB,was$34,393 million in fiscal 2022.Measures and ratios presented on a basis net of CCPB are non-GAAP amounts.(4)Capital and liquidity measures are disclosed in accordance with the Capital Adequacy Requirements(CAR
227、)Guideline and the Liquidity Adequacy Requirements(LAR)Guideline,as set out by OSFI,asapplicable.Certain comparative figures have been reclassified for changes in accounting policy.20 BMO Financial Group 207th Annual Report 2024 MD&A MD&A Non-GAAP and Other Financial MeasuresResults and measures in
228、this document are presented on a generally accepted accounting principles(GAAP)basis.Unless otherwise indicated,allamounts are in Canadian dollars and have been derived from our audited annual consolidated financial statements prepared in accordance withInternational Financial Reporting Standards(IF
229、RS)as issued by the International Accounting Standards Board.References to GAAP mean IFRS.We usea number of financial measures to assess our performance,as well as the performance of our operating segments,including amounts,measures andratios that are presented on a non-GAAP basis,as described below
230、.We believe that these non-GAAP amounts,measures and ratios,read togetherwith our GAAP results,provide readers with a better understanding of how management assesses results.Non-GAAP amounts,measures and ratios do not have standardized meanings under GAAP.They are unlikely to be comparable to simila
231、rmeasures presented by other companies and should not be viewed in isolation from,or as a substitute for,GAAP results.For further information regarding the composition of other financial measures,including supplementary financial measures,refer to the Glossaryof Financial Terms.Our non-GAAP measures
232、 broadly fall into the following categories:Adjusted measures and ratiosManagement considers both reported and adjusted results and measures to be useful in assessing underlying ongoing business performance.Adjusted results and measures remove certain specified items from revenue,non-interest expens
233、e,provision for credit losses and income taxes,asdetailed in the following table.Adjusted results and measures presented in this document are non-GAAP.Presenting results on both a reported basisand an adjusted basis permits readers to assess the impact of certain items on results for the periods pre
234、sented,and to better assess resultsexcluding those items that may not be reflective of ongoing business performance.As such,the presentation may facilitate readers analysis oftrends.Except as otherwise noted,managements discussion of changes in reported results in this document applies equally to ch
235、anges in thecorresponding adjusted results.Tangible common equity and return on tangible common equityTangible common equity is calculated as common shareholders equity,less goodwill and acquisition-related intangible assets,net of related deferredtax liabilities.Return on tangible common equity(ROT
236、CE)is calculated as net income available to common shareholders,adjusted for the amortizationof acquisition-related intangible assets,as a percentage of average tangible common equity.ROTCE is commonly used in the North American bankingindustry and is meaningful because it measures the performance o
237、f businesses consistently,whether they were acquired or developed organically.Measures net of insurance claims,commissions and changes in policy benefit liabilitiesFor periods prior to November 1,2022,we presented adjusted revenue on a basis net of insurance claims,commissions and changes in policy
238、benefitliabilities(CCPB),and our efficiency ratio and operating leverage were calculated on a similar basis.Beginning the first quarter of fiscal 2023,we nolonger report CCPB,given the adoption and retrospective application of IFRS 17,Insurance Contracts(IFRS 17).For periods prior to November 1,2022
239、,adjusted efficiency ratio and adjusted operating leverage were calculated based on revenue,net of CCPB.Measures and ratios presented on a basisnet of CCPB are non-GAAP amounts.For more information,refer to the Insurance Claims,Commissions and Changes in Policy Benefit Liabilities sectionof the 2023
240、 Annual MD&A.CautionThis Non-GAAP and Other Financial Measures section contains forward-looking statements.Please refer to the Caution Regarding Forward-Looking Statements.BMO Financial Group 207th Annual Report 2024 21MANAGEMENTS DISCUSSION AND ANALYSISNon-GAAP and Other Financial MeasuresTABLE 4(C
241、anadian$in millions,except as noted)20242023Reported ResultsNet interest income19,46818,681Non-interest revenue13,32710,578Revenue32,79529,259Provision for credit losses(3,761)(2,178)Non-interest expense(19,499)(21,134)Income before income taxes9,5355,947Provision for income taxes(2,208)(1,510)Net i
242、ncome7,3274,437Diluted EPS($)9.515.76Adjusting Items Impacting Revenue(Pre-tax)Management of fair value changes on the purchase of Bank of the West(1)(2,011)Legal provision/reversal(including related interest expense and legal fees)(2)547(30)Impact of Canadian tax measures(3)(138)Impact of loan port
243、folio sale(4)(164)Impact of adjusting items on revenue(pre-tax)383(2,179)Adjusting Items Impacting Provision for Credit Losses(Pre-tax)Initial provision for credit losses on purchased performing loans(pre-tax)(5)(705)Adjusting Items Impacting Non-Interest Expense(Pre-tax)Acquisition and integration
244、costs(6)(172)(2,045)Amortization of acquisition-related intangible assets(7)(450)(357)Legal provision/reversal(including related interest expense and legal fees)(2)5883Impact of Canadian tax measures(3)(22)FDIC special assessment(8)(476)Impact of adjusting items on non-interest expense(pre-tax)(510)
245、(2,421)Impact of adjusting items on reported net income(pre-tax)(127)(5,305)Adjusting Items Impacting Revenue(After-tax)Management of fair value changes on the purchase of Bank of the West(1)(1,461)Legal provision/reversal(including related interest expense and legal fees)(2)401(23)Impact of Canadia
246、n tax measures(3)(115)Impact of loan portfolio sale(4)(136)Impact of adjusting items on revenue(after-tax)265(1,599)Adjusting Items Impacting Provision for Credit Losses(After-tax)Initial provision for credit losses on purchased performing loans(after-tax)(5)(517)Adjusting Items Impacting Non-Intere
247、st Expense(After-tax)Acquisition and integration costs(6)(129)(1,533)Amortization of acquisition-related intangible assets(7)(334)(264)Legal provision/reversal(including related interest expense and legal fees)(2)4332Impact of Canadian tax measures(3)(16)FDIC special assessment(8)(357)Impact of adju
248、sting items on non-interest expense(after-tax)(387)(1,811)Adjusting Items Impacting Provision for Income TaxesImpact of Canadian tax measures(3)(371)Impact of adjusting items on reported net income(after-tax)(122)(4,298)Impact on diluted EPS($)(0.17)(6.05)Adjusted ResultsNet interest income18,92119,
249、094Non-interest revenue13,49112,344Revenue32,41231,438Provision for credit losses(3,761)(1,473)Non-interest expense(18,989)(18,713)Income before income taxes9,66211,252Provision for income taxes(2,213)(2,517)Net income7,4498,735Diluted EPS($)9.6811.81Adjusted results excluded the following items:(1)
250、Management of the impact of interest rate changes between the announcement and closing of the acquisition of Bank of the West on its fair value and goodwill,recorded in Corporate Services.Fiscal 2023 comprised$1,628 million of mark-to-market losses on certain interest rate swaps recorded in trading
251、revenue and$383 million of losses on a portfolio of primarily U.S.treasuries andother balance sheet instruments recorded in net interest income.(2)Impact of a lawsuit associated with a predecessor bank,M&I Marshall and Ilsley Bank,recorded in Corporate Services.Fiscal 2024:Reversal of a fiscal 2022
252、legal provision,including accrued interestcomprising a reversal of$547 million of interest expense and$588 million of non-interest expense.Fiscal 2023:A provision comprising a$30 million interest expense and a$3 million recovery ofnon-interest expense.For further information,refer to the Provisions
253、and Contingent Liabilities section in Note 25 of the audited annual consolidated financial statements.(3)Impact of certain tax measures enacted by the Canadian government,recorded in Corporate Services.Fiscal 2023:$371 million one-time tax expense,comprising a$312 million Canada RecoveryDividend and
254、$59 million related to the pro-rated fiscal 2022 impact of the 1.5%tax rate increase,net of a deferred tax asset remeasurement;and a$131 million($160 million pre-tax)charge relatedto the amended GST/HST definition for financial services,comprising$138 million recorded in non-interest revenue and$22
255、million recorded in non-interest expense.(4)Net accounting loss on the sale of a portfolio of recreational vehicle loans related to balance sheet optimization,recorded in non-interest revenue in Corporate Services.(5)Initial provision for credit losses on the purchased Bank of the West performing lo
256、an portfolio,recorded in Corporate Services.22 BMO Financial Group 207th Annual Report 2024 MD&A MD&A (6)Acquisition and integration costs,recorded in non-interest expense in the related operating group.Bank of the West recorded in Corporate Services:$97 million($129 million pre-tax)in fiscal 2024an
257、d$1,520 million($2,027 million pre-tax)in fiscal 2023.Radicle and Clearpool recorded in BMO Capital Markets:$15 million($20 million pre-tax)in fiscal 2024 and$4 million($5 million pre-tax)infiscal 2023.AIR MILES recorded in Canadian P&C:$17 million($23 million pre-tax)in fiscal 2024 and$9 million($1
258、3 million pre-tax)in fiscal 2023.(7)Amortization of acquisition-related intangible assets and any impairments,recorded in non-interest expense in the related operating group.Fiscal 2024 included an$18 million write-down related tothe acquisition of Radicle,recorded in BMO Capital Markets.(8)Impact o
259、f a U.S.Federal Deposit Insurance Corporation(FDIC)special assessment,recorded in non-interest expense in Corporate Services.Certain comparative figures have been reclassified for changes in accounting policy.Summary of Reported and Adjusted Results by Operating SegmentTABLE 5(Canadian$in millions,e
260、xcept as noted)Canadian P&CU.S.P&CTotal P&CBMO WealthManagementBMO CapitalMarketsCorporateServicesTotal BankU.S.Segment(1)(US$in millions)2024Reported net income(loss)3,4571,8295,2861,2481,492(699)7,3272,112Adjusting Items(2)Acquisition and integration costs1717159712976Amortization of acquisition-r
261、elatedintangible assets13283296731334222Legal provision/reversal(including relatedinterest expense and legal fees)(834)(834)(616)Impact of loan portfolio sale136136102Impact of FDIC special assessment357357263Adjusted net income(loss)3,4872,1125,5991,2551,538(943)7,4492,1592023Reported net income(lo
262、ss)3,5732,4896,0621,1461,625(4,396)4,43715Adjusting Items(2)Acquisition and integration costs9941,5201,5331,124Amortization of acquisition-relatedintangible assets6234240420264186Management of fair value changes on thepurchase of Bank of the West1,4611,4611,093Legal provision/reversal(including rela
263、tedinterest expense and legal fees)212115Impact of Canadian tax measures502502Initial provision for credit losses on purchasedperforming loans517517379Adjusted net income(loss)3,5882,7236,3111,1501,649(375)8,7352,812(1)U.S.segment reported and adjusted results comprise net income recorded in U.S.P&C
264、 and our U.S.operations in BMO Wealth Management,BMO Capital Markets and Corporate Services.(2)Refer to footnotes(1)to(8)in the Non-GAAP and Other Financial Measures table for further information on adjusting items.Certain comparative figures have been reclassified to conform with the current years
265、presentation and for changes in accounting policy.Return on Equity and Return on Tangible Common EquityTABLE 6(Canadian$in millions,except as noted)For the year ended October 3120242023Reported net income7,3274,437Net income attributable to non-controlling interest in subsidiaries912Net income attri
266、butable to bank shareholders7,3184,425Dividends on preferred shares and distributions on other equity instruments(386)(331)Net income available to common shareholders(A)6,9324,094After-tax amortization of acquisition-related intangible assets334264Net income available to common shareholders after ad
267、justing for amortization of acquisition-relatedintangible assets(B)7,2664,358After-tax impact of other adjusting items(1)(212)4,034Adjusted net income available to common shareholders(C)7,0548,392Average common shareholders equity(D)71,81766,444Goodwill(16,385)(13,466)Acquisition-related intangible
268、assets(2,642)(2,197)Net of related deferred liabilities960857Average tangible common equity(E)53,75051,638Return on equity(%)(=A/D)9.76.2Adjusted return on equity(%)(=C/D)9.812.6Return on tangible common equity(%)(=B/E)13.58.4Adjusted return on tangible common equity(%)(=C/E)13.116.3(1)Refer to foot
269、notes(1)to(8)in the Non-GAAP and Other Financial Measures table for further information on adjusting items.Certain comparative figures have been reclassified for changes in accounting policy.BMO Financial Group 207th Annual Report 2024 23MANAGEMENTS DISCUSSION AND ANALYSISReturn on Equity by Operati
270、ng Segment(1)TABLE 72024(Canadian$in millions,except as noted)Canadian P&CU.S.P&CTotal P&CBMO WealthManagementBMO CapitalMarketsCorporateServicesTotal BankU.S.Segment(2)(US$in millions)ReportedNet income available to common shareholders3,4151,7735,1881,2391,455(950)6,9322,087Total average common equ
271、ity15,98633,23549,2214,77013,1724,65471,81731,782Return on equity(%)21.45.410.526.011.0na9.76.6Adjusted(3)Net income available to common shareholders3,4452,0565,5011,2461,501(1,194)7,0542,134Total average common equity15,98633,23549,2214,77013,1724,65471,81731,782Return on equity(%)21.56.211.226.111
272、.4na9.86.72023(Canadian$in millions,except as noted)Canadian P&CU.S.P&CTotal P&CBMO WealthManagementBMO CapitalMarketsCorporateServicesTotal BankU.S.Segment(2)(US$in millions)ReportedNet income available to common shareholders3,5342,4385,9721,1381,592(4,608)4,094(17)Total average common equity13,269
273、27,56940,8384,62311,8339,15066,44427,203Return on equity(%)26.68.814.624.613.4na6.2(0.1)Adjusted(3)Net income available to common shareholders3,5492,6726,2211,1421,616(587)8,3922,780Total average common equity13,26927,56940,8384,62311,8339,15066,44427,203Return on equity(%)26.79.715.224.713.6na12.61
274、0.2(1)Return on equity is based on allocated capital.For further information,refer to the How BMO Reports Operating Group Results section.(2)U.S.segment reported and adjusted results comprise net income and allocated capital recorded in U.S.P&C and our U.S.operations in BMO Wealth Management,BMO Cap
275、ital Markets and CorporateServices.(3)Refer to footnotes(1)to(8)in the Non-GAAP and Other Financial Measures table for further information on adjusting items.na not applicableCertain comparative figures have been reclassified to conform with the current years presentation and for changes in accounti
276、ng policy.Capital is allocated to the operating segments based on the amount of regulatory capital required to support business activities.Effective the firstquarter of fiscal 2024,our capital allocation rate increased to 11.5%of risk-weighted assets,compared with 11.0%in fiscal 2023,to reflect incr
277、easedregulatory capital requirements.Unallocated capital is reported in Corporate Services.Capital allocation methodologies are reviewed at least annually.24 BMO Financial Group 207th Annual Report 2024 MD&A MD&A Economic Developments and OutlookEconomic Developments in 2024 and Outlook for calendar
278、 2025(1)Canadas real gross domestic product(GDP)growth is estimated to have slowed modestly to an annual rate of 1.3%in 2024,from 1.5%in 2023.Steady growth in consumer and government spending was partially offset by weakness in housing market activity,business investment and exports.Real GDP growth
279、is expected to improve moderately to 2.0%in 2025 in response to the Bank of Canadas interest rate reductions,a temporaryreduction in sales taxes on some items and federal stimulus cheques,and firmer global demand.However,the federal governments intent tosignificantly reduce immigration and the expec
280、ted rate of population growth over the next two years implies some downside risk to GDP growth.Theunemployment rate increased by almost one percentage point during the past year to 6.5%in October 2024,due to a rapidly expanding labour forceand slowing employment growth.The unemployment rate is antic
281、ipated to rise to 7.0%by early 2025,before falling modestly as economic growthimproves and population growth slows.Easing labour shortages and lower gasoline prices contributed to the moderate 2.0%year-over-year growthin the consumer price index in October 2024.With inflation declining faster than a
282、nticipated,the Bank of Canada has lowered its key policy rate by acumulative 125 basis points since June 2024 and is expected to reduce it by an additional 125 basis points to 2.5%by June 2025.The housing marketis projected to strengthen in 2025 as a result of lower mortgage rates and new mortgage r
283、ules intended to support first-time home buyers.Industry-wide growth in residential mortgage balances remained stable at 3.5%year-over-year in September 2024,but is projected to gradually pick up ashousing market activity improves in 2025.Year-over-year growth in consumer credit(excluding mortgages)
284、increased to 4.0%in September 2024,amid strong growth in credit card balances,though this is unlikely to be sustained in 2025.Growth in non-financial corporate credit balancesdecelerated sharply in 2024 as a result of weak business investment and elevated cash balances,but is expected to increase at
285、 a moderate pacein 2025 in response to lower interest rates.The Canadian dollar will likely remain weak due to the lower interest rate environment in Canada relativeto the United States and the threat of higher tariffs on Canadian exports to the United States,before appreciating modestly in 2025 as
286、the U.S.dollarweakens on an easing Federal Reserve policy.U.S.real GDP growth is estimated to have moderated slightly to an annual rate of 2.7%in 2024 from 2.9%in 2023,amid continued strength inconsumer,business and government spending,partially offset by weaker housing market activity.With support
287、from lower interest rates andexpansionary fiscal policies,including a possible reduction in the corporate tax rate,the economy is projected to continue growing at a healthy rateof 2.2%in 2025.While employment growth remains solid,the unemployment rate increased from a half-century low of 3.4%in Apri
288、l 2023 to 4.1%inOctober 2024 and is projected to rise slightly to 4.3%in early 2025.The easing in labour market conditions has reduced pressure on inflation,resulting in year-over-year growth in the consumer price index moderating to 2.6%in October 2024.The Federal Reserve lowered its key lending ra
289、tefor the first time in four years in September 2024 by 50 basis points and again in November by 25 basis points,and is projected to reduce the ratefurther by a cumulative 125 basis points to a range of 3.25%to 3.50%by late 2025.Growth in residential mortgage balances has slowedconsiderably to 1.9%y
290、ear-over-year in October 2024 due to ongoing weakness in home sales,but will likely strengthen moderately in 2025 givenanticipated declines in mortgage rates.Despite increased credit card use,year-over-year growth in consumer loan balances decelerated to 1.5%inOctober 2024,but is projected to grow i
291、n 2025 due to lower interest rates.Growth in commercial,industrial and commercial real estate creditremains weak due to still elevated borrowing costs,stricter lending conditions and weakness in the office real estate market,though it is expected tostrengthen in 2025 in response to lower interest ra
292、tes.The economic outlook is subject to several risks that could lead to a less favourable outcome for the North American economy.These includepotential higher tariffs on U.S.imports,an escalation of conflicts in the Middle East and Ukraine,heightened tensions between the United States andChina over
293、trade relations and Taiwan,tensions between Canada and India,and a possible strike by U.S.East and Gulf Coast dockworkers inJanuary 2025.In addition,the Canadian dollar faces downside risks from possible U.S.tariffs and the upcoming renegotiation of the Canada-UnitedStates-Mexico Trade Agreement(CUS
294、MA)in 2026.Refer to the Risks That May Affect Future Results Top and Emerging Risks That May Affect FutureResults section for further discussion of these risks.CautionThis Economic Developments and Outlook section contains forward-looking statements.Please refer to the Caution Regarding Forward-Look
295、ing Statements.(1)All time periods in this section refer to the calendar year rather than BMOs fiscal year.BMO Financial Group 207th Annual Report 2024 25MANAGEMENTS DISCUSSION AND ANALYSIS2024 Financial Performance ReviewThis section provides a review of BMOs enterprise financial performance for fi
296、scal 2024 that focuses on the Consolidated Statement of Income inBMOs audited annual consolidated financial statements.A review of the operating groups strategies and performance follows the enterprise review.Foreign ExchangeTABLE 8(Canadian$in millions,except as noted)2024 vs.2023Canadian/U.S.dolla
297、r exchange rate(average)20241.359120231.3492Effects on U.S.Segment Reported ResultsIncreased(Decreased)net interest income66Increased(Decreased)non-interest revenue21Increased(Decreased)total revenue87Decreased(Increased)provision for credit losses(9)Decreased(Increased)non-interest expense(79)Decre
298、ased(Increased)provision for income taxes1Increased(Decreased)net incomeImpact on earnings per share($)Effects on U.S.Segment Adjusted Results(1)Increased(Decreased)net interest income69Increased(Decreased)non-interest revenue33Increased(Decreased)total revenue102Decreased(Increased)provision for cr
299、edit losses(4)Decreased(Increased)non-interest expense(62)Decreased(Increased)provision for income taxes(8)Increased(Decreased)net income28Impact on earnings per share($)0.04(1)Adjusted results are on a non-GAAP basis and are discussed in the Non-GAAP and Other Financial Measures section.The table a
300、bove indicates the relevant average Canadian/U.S.dollar exchange rates and the impact of changes in those rates on BMOs U.S.segmentreported and adjusted results.The Canadian dollar equivalents of BMOs U.S.segment results that are denominated in U.S.dollars increased in fiscal 2024 relative to fiscal
301、 2023,due to changes in the Canadian/U.S.dollar exchange rate.References in this document to the impact of the U.S.dollar do not includeU.S.dollar-denominated amounts recorded outside of BMOs U.S.segment.Economically,our U.S.dollar income stream was not hedged against the risk of changes in foreign
302、exchange rates during fiscal 2024 andfiscal 2023.Changes in exchange rates will affect future results measured in Canadian dollars,and the impact on those results is a function of theperiods in which revenue,expenses and provisions for(or recoveries of)credit losses and income taxes arise.Refer to t
303、he Enterprise-Wide Capital Management section for a discussion of the impact that changes in foreign exchange rates can have onBMOs capital position.Net IncomeReported net income was$7,327 million,an increase of$2,890 million or 65%from the prior year,and adjusted net income was$7,449 million,adecre
304、ase of$1,286 million.Adjusted results in the current and prior years excluded the following items:The reversal of a fiscal 2022 legal provision(1),including accrued interest,associated with a predecessor bank,M&I Marshall and Ilsley Bank,of$834 million($1,135 million pre-tax)in the current year,comp
305、rising a reversal of interest expense of$547 million and a reversal of non-interestexpense of$588 million,compared with a provision of$21 million($27 million pre-tax)in the prior year,comprising interest expenseof$30 million and a reversal of non-interest expense of$3 million.Acquisition and integra
306、tion costs of$129 million($172 million pre-tax)in the current year and$1,533 million($2,045 million pre-tax)in the prioryear.Amortization of acquisition-related intangible assets of$334 million($450 million pre-tax)in the current year,including an$18 million write-downrelated to the acquisition of R
307、adicle Group Inc.(Radicle)in BMO Capital Markets,and$264 million($357 million pre-tax)in the prior year.The impact of the U.S.Federal Deposit Insurance Corporation(FDIC)special assessment of$357 million($476 million pre-tax)in the current year.(1)For further information,refer to the Provisions and C
308、ontingent Liabilities section in Note 25 of the audited annual consolidated financial statements.26 BMO Financial Group 207th Annual Report 2024 MD&A MD&A A net accounting loss of$136 million($164 million pre-tax)in the current year on the sale of a$9.6 billion(US$7.2 billion)portfolio of recreation
309、alvehicle loans related to balance sheet optimization.A loss of$1,461 million($2,011 million pre-tax)in the prior year related to the management of the impact of interest rate changes between theannouncement and closing of the Bank of the West acquisition on its fair value and goodwill.Initial provi
310、sion for credit losses of$517 million($705 million pre-tax)in the prior year on the purchased Bank of the West performing loanportfolio.Impact of certain tax measures enacted by the Canadian government in the prior year,including a one-time tax expense of$371 million,and acharge of$131 million($160
311、million pre-tax)related to the amended GST/HST definition for financial services,comprising non-interest revenueof$138 million and non-interest expense of$22 million.Reported net income increased from the prior year,primarily due to the items noted above.The current year included one additional quar
312、ter of Bankof the West results.Adjusted net income decreased,with higher revenue more than offset by a higher provision for credit losses and higherexpenses.Reported and adjusted net income decreased in U.S.P&C,BMO Capital Markets and Canadian P&C,and increased in BMO WealthManagement.On a reported
313、basis,Corporate Services recorded a lower net loss compared with the prior year,primarily due to the items notedabove.On an adjusted basis,Corporate Services recorded a higher net loss.Further discussion is provided in the 2024 Operating Groups Performance Review section.For further information on n
314、on-GAAP amounts,measures and ratios in this Net Income section,refer to the Non-GAAP and Other FinancialMeasures section.Revenue(1)TABLE 9(Canadian$in millions,on a pre-tax basis)For the year ended October 3120242023Net interest income19,46818,681Non-interest revenue13,32710,578Total revenue32,79529
315、,259Management of fair value changes on the purchase of Bank of the West(2)2,011Legal provision/reversal(including related interest expense and legal fees)(3)(547)30Impact of loan portfolio sale(4)164Impact of Canadian tax measures(5)138Impact of adjusting items on revenue(383)2,179Adjusted revenue3
316、2,41231,438(1)Adjusted results exclude certain items from reported results and are used to calculate our adjusted measures as presented in the table above.Management assesses performance on a reported basisand an adjusted basis,and considers both to be useful.For further information,refer to the Non
317、-GAAP and Other Financial Measures section.(2)Management of the impact of interest rate changes between the announcement and closing of the acquisition of Bank of the West on its fair value and goodwill,recorded in Corporate Services.Fiscal 2023 comprised$1,628 million of mark-to-market losses on ce
318、rtain interest rate swaps recorded in trading revenue and$383 million of losses on a portfolio of primarily U.S.treasuries andother balance sheet instruments recorded in net interest income.(3)Impact of a lawsuit associated with a predecessor bank,M&I Marshall and Ilsley Bank,recorded in Corporate S
319、ervices.Fiscal 2024:$547 million reversal of interest expense relating to a fiscal 2022legal provision.Fiscal 2023:$30 million interest expense provision.For further information,refer to the Provisions and Contingent Liabilities section in Note 25 of the audited annual consolidatedfinancial statemen
320、ts.(4)Net accounting loss on the sale of a portfolio of recreational vehicle loans related to balance sheet optimization,recorded in non-interest revenue in Corporate Services.(5)Impact of certain tax measures enacted by the Canadian government related to the amended GST/HST definition for financial
321、 services,recorded in non-interest revenue in Corporate Services.Certain comparative figures have been reclassified for changes in accounting policy.Effective the first quarter of fiscal 2024,the bank adopted IFRS 17,Insurance Contracts(IFRS 17)and retrospectively applied it to fiscal 2023 results.I
322、nsurance results are now presented in non-interest revenue under insurance service results and insurance investment results.As a result of theadoption and retrospective application of IFRS 17 to our fiscal 2023 results,we no longer report insurance claims,commissions and changes in policybenefits as
323、 a separate line item in the Consolidated Statement of Income.Fiscal 2023 results may not be fully representative of our future earningsprofile,as we did not previously manage our insurance portfolio under the new standard.For additional information,refer to Note 1 of the auditedannual consolidated
324、financial statements.Reported revenue was$32,795 million,an increase of$3,536 million or 12%from the prior year,and adjusted revenue was$32,412 million,anincrease of$974 million or 3%.Reported and adjusted revenue increased across all operating groups and included one additional quarter of Bank of t
325、he West.Corporate Servicesrevenue increased on a reported basis and decreased on an adjusted basis.Further discussion is provided in the 2024 Operating Groups Performance Review section.For further information on non-GAAP amounts,measures and ratios in this Revenue section,refer to the Non-GAAP and
326、Other Financial Measuressection.BMO Financial Group 207th Annual Report 2024 27MANAGEMENTS DISCUSSION AND ANALYSISNet Interest Income comprises earnings on assets,such as loans and securities,including interest and certain dividend income,less interest expensepaid on liabilities,such as deposits.Net
327、 interest income,excluding trading,is presented on a basis that excludes trading-related interest income.Net Interest Margin is the ratio of net interest income to average earning assets,expressed as a percentage or in basis points.Net interest margin,excluding trading net interest income,and tradin
328、g and insurance average assets is calculated in the same manner,excluding trading-related interestincome,and trading and insurance earning assets.Average Earning Assets represent the daily average balance of deposits at central banks,deposits with other banks,securities borrowed orpurchased under re
329、sale agreements,securities and loans over the period.Trading-Related Revenue comprises net interest income and non-interest revenue earned from on-balance sheet and off-balance sheet positionsundertaken for trading purposes.We earn revenue from profitably managing our positions with clients and,on a
330、 limited basis,from our principaltrading positions,subject to prescribed limits.The management of these positions typically includes marking them to market on a daily basis.Sincetrading activities and related risk management strategies can periodically shift trading income between net interest incom
331、e and non-interest income,we view total trading income as the most appropriate measure of trading performance.Net Interest IncomeReported net interest income was$19,468 million,an increase of$787 million or 4%from the prior year,and adjusted net interest incomewas$18,921 million,a decrease of$173 mi
332、llion or 1%from the prior year.The increase in reported net interest income primarily reflected the reversal of accrued interest on the fiscal 2022 legal provision in the currentyear and the impact of fair value management actions related to Bank of the West in the prior year.Adjusted net interest i
333、ncome decreased,reflectingstrong growth in Canadian P&C driven by higher balances and margins,higher balances in U.S.P&C and an increase in non-trading interest income inBMO Capital Markets,more than offset by lower net interest income in Corporate Services and lower trading-related net interest income.Trading-related net interest income was$169 million,a decrease of$731 million from the prior yea
0731-84720580
sgpjbg002
工作日 9:30 - 18:00
研報
新質生產力
DeepSeek?
低空經濟
大模型
AI Agent
AI Infra
具身智能
自動駕駛
寵物
銀發經濟
人形機器人
企業出海
算力
微短劇
薪酬
白皮書
創新藥
人工智能
AI產業
信息科技
互聯網
消費經濟
汽車交通
電商零售
傳媒娛樂
醫藥健康
投資金融
能源環境
地產建筑
傳統產業
英文報告
其它
最新報告
中英對照
全文搜索
報告精選
PDF上傳翻譯
多格式文檔互轉
入駐&報告售賣
會員權益
機構報告
券商研報
財報庫
專題合集
英文報告
數據圖表
會議報告
其他資源
行業聚焦
芯片產業
熱點概念
全球咨詢智庫
人工智能
500強
新質生產力
會議峰會
新能源汽車
企業年報
互聯網
公司研究
行業綜觀
消費教育
科技通信
醫藥健康
人力資源
投資金融
汽車產業
物流地產
電子商務
傳統產業
傳媒營銷
其它
2025低空經濟/低空產業報告合集（共49套打包）
2025年智算中心/AIDC/AI數據中心研究報告合集（共37套打包）
AI、科技與通信
廣告、傳媒與營銷
消費、零售與支付
HR、文化與旅游
金融、保險與投資
能源、環境與工業
醫療制藥與大健康
物流、地產與建筑
其他行業
AI ? 科技 ? 通信
數字化
金融財經
智能制造
電商傳媒
地產建筑
醫療醫學
能源化工
其他行業
收藏
下載
2025-05-20
AI查數
行業數據
政策法規
商業模式
產業鏈
競爭格局
市場規模
產業概述
其它
2025年
AI讀財報
年報
一季報
半年報
三季報
IPO招股書
社會責任報告
A股
IPO申報
港股
美股&全球
新三板
掃碼登錄
手機快捷登錄
賬號登錄
