Bank Of Montreal · TSX:BMO
Bank Of Montreal — Investor Presentation (March 2020)
14 slides from Bank Of Montreal's investor presentation, March 2020
Slide 1: Investor Presentation
Investor Presentation March 2020
Slide 2: Forward looking statements & non-GAAP measures
Forward looking statements & non-GAAP measures Caution Regarding Forward-Looking Statements Bank of Montreal’s public communications often include written or oral forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian sec
Slide 3: Strong operating momentum, balance sheet position
Strong operating momentum, balance sheet position Diversified sources of revenue Strong foundation with diversified business mix % of Operating Groups Net Revenue – LTM • Good operating performance in F2019 and Q1’20, with strong operating leverage of 4.6% • Strong pre-provision pre-tax earnings1 of
Slide 4: Q1 F2020 - Financial Highlights
Q1 F2020 - Financial Highlights Net income up 5% Y/Y; PPPT5 up 16% Y/Y; adjusted1 operating leverage2 4.6% with all Groups above 2.0% • Adjusted1 EPS $2.41, up 4% Y/Y, 5% CCY6 (reported Reported Adjusted1 $2.37, up 4%) ($MM) Q1 20 Q4 19 Q1 19 Q1 20 Q4 19 Q1 19 • Adjusted1 and reported net income up
Slide 5: Reasons to Invest in BMO
Reasons to Invest in BMO • Diversified businesses that continue to deliver • Well-capitalized with an attractive dividend yield robust earnings growth and long-term value for shareholders • Creating sustainable efficiency and reinvestment capacity through resource optimization, • Strong foundation b
Slide 6: Commercial business well-positioned for current environment
Commercial business well-positioned for current environment • A relationship-based bank: Commercial bankers partner with clients, anticipating their financial needs and sharing our expertise and Commercial Banking Revenue as knowledge to help clients grow and manage their businesses % of Total Bank
Slide 7: Loans are well-diversified by geography and industry
Loans are well-diversified by geography and industry Gross Loans & Acceptances Loans by Geography3 Canada & By Industry 1 U.S. Total % of Total Other ($B, as at Q1 20) Residential Mortgages 113.4 11.0 124.4 27% 35% Canada Consumer Instalment and Other 56.4 12.2 68.6 15% 62% U.S. Personal Cards 8.2 0
Slide 8: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) Loss rates lower than peer average over time reflecting strong risk culture and disciplines PCL By Operating Group Q1 20 Q4 19 Q1 19 ($MM) PCL in bps1 Total Canadian P&C 138 134 114 28 31 23 29 Total U.S. P&C 132 66 15 BMO Wealth Management 0 1 2 16 22 13 21 BMO Cap
Slide 9: BMO Capital Markets
BMO Capital Markets • Well-diversified platform and business mix – by sector, geography, product and currency Revenue by Product1 • Strong results in Q1 across businesses and geographies Merchant Banking Other − Strong contributions across the platform Corporate especially from equities, fixed incom
Slide 10: Oil and Gas Portfolio
Oil and Gas Portfolio Loans are well diversified and in-line with peer averages • O&G portfolio is not outsized: Q1’20 Of Business and Of Total Gross Loans & Government Loans Acceptances ― 5.1% of Business and Government Oil and Gas % loans, in-line with peer average, BNS 7.1% 2.7% CIBC 6.6% 2.3% be
Slide 11: Oil and Gas Portfolio
Oil and Gas Portfolio High quality portfolio with proven history of strong credit performance over time • Reputation as a strong through-the-cycle Cumulative O&G PCL Ratio lender with solid performance during last energy downturn (2015 to 2017) • BMO’s O&G portfolio outperformed peers 9.41% through
Slide 12: Oil & Gas Portfolio
Oil & Gas Portfolio Clients experienced in managing through downturns • Clients are prudent managers, experienced in managing through downturns Canadian & Other O&G • Many borrowers have hedged production ($5.9B) − Across our North American sub-investment grade E&D book, over 50% oil exposure is hed
Slide 13: Canadian Residential-Secured Lending
Canadian Residential-Secured Lending Q1’20 Residential-Secured Lending by Region ($147.5B) • Total Canadian residential-secured lending portfolio at $66.3 $147.5B, representing 32% of total loans below peer HELOC average of approximately 46% Uninsured Mortgages $28.8 ─ LTV1 on uninsured of 51% 24% I
Slide 14: Investor Relations
Investor Relations Contact Information http://www.bmo.com/investorrelations E-mail: investor.relations@bmo.com JILL HOMENUK SUKHWINDER SINGH Head, Investor Relations Senior Manager, Investor Relations 416.867.4770 416.867.4734 jill.homenuk@bmo.com Sukhwinder.singh@bmo.com
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