BMO:CC - Bank of Montreal (BMO) Q2 2024 Earnings Call Transcript
2024-05-29 12:06:05 ET
Bank of Montreal (BMO)
Q2 2024 Earnings Conference Call
May 29, 2024 8:00 AM ET
Company Participants
Christine Viau - IR
Darryl White - CEO
Tayfun Tuzun - CFO
Piyush Agrawal - Chief Risk Officer
Ernie Johannson - Head of BMO North American Personal and Business Banking
Nadim Hirji - Head of BMO Commercial Banking
Conference Call Participants
Ebrahim Poonawala - Bank of America
Matthew Lee - Canaccord
Doug Young - Desjardins Capital Markets
Meny Grauman - Scotiabank
John Aiken - Jefferies
Gabriel Dechaine - National Bank Financial
Lemar Persaud - Cormark Securities
Nigel D'Souza - Veritas Investment Research
Mario Mendonca - TD Securities
Mike Rizvanovic - Keefe, Bruyette, & Woods
Darko Mihelic - RBC Capital Markets
Paul Holden - CIBC
Presentation
Operator
Good morning and welcome to the BMO Financial Group's Q2 2024 Earnings Release and Conference Call for May 29, 2024. Your host for today is Christine Viau. Please go ahead.
Christine Viau
Thank you and good morning. We will begin the call with remarks from Darryl White, BMO's CEO; followed by Tayfun Tuzun, our Chief Financial Officer; and Piyush Agrawal, our Chief Risk Officer. Also present today to take questions are Ernie Johansson, Head of BMO North American Personal and Business Banking; Nadim Hirji, Head of BMO Commercial Banking; Alan Tannenbaum, Head of BMO Capital Markets; Deland Kamanga, Head of BMO Wealth Management; and Darrel Hackett, EMO US CEO.
As noted on Slide 2, forward-looking statements may be made during this call which involve assumptions that have inherent risks and uncertainties. Actual results could differ materially from these statements. I would also remind listeners that the bank uses non-GAAP financial measures to arrive at adjusted results, management measures performance on a reported and adjusted basis and considers both to be useful in assessing underlying business performance. Darryl and Tayfun will be referring to adjusted results in their remarks unless otherwise noted.
I will now turn the call over to Daryl.
Darryl White
Thank you, Christine, and good morning, everyone. Today we announced adjusted net income of $2 billion and adjusted earnings per share of $2.59, with a $0.04 increase in our dividend up 5% over last year. We achieved strong pre-provision pre-tax earnings growth of 7% from last year, driven by continued momentum in Canadian personal and commercial banking and strengthening performance in our capital markets and wealth businesses.
Canadian P&C delivered record revenue up 13% year-over-year with industry leading growth in customer acquisition contributing to market share gains. We've seen strong momentum from newcomers to Canada, up 35% compared with last year, due to the success of BMO's New Start program, pre-arrival digital tools and advice all aimed at helping new Canadians make real financial progress. BMO capital markets had strong PPPT of $642 million within the range we have guided to and up 21% from last year, driven by good client activity and record results in debt underwriting.
We met our commitment to positive operating leverage this quarter, which was very strong at 3%. Expenses were down from last year and from last quarter from the achievement of the Bank of the West cost synergies, and a large portion of the incremental operational efficiency savings we announced last year. We remain focused on delivering positive operating leverage for the full year....
Bank of Montreal (BMO) Q2 2024 Earnings Call Transcript