Bank of Montreal (NYSE:BMO) Q4 2023 Earnings Call Transcript December 1, 2023 8:00 AM ET
Company Participants
Christine Viau - IR
Darryl White - CEO
Tayfun Tuzun - CFO
Piyush Agrawal - CRO
Nadim Hirji - Head of BMO Commercial Banking
Ernie Johannson - Head of BMO North American Personal and Business Banking
Conference Call Participants
Meny Grauman - Scotiabank
Ebrahim Poonawala - Bank of America
Gabriel Dechaine - National Bank Financial
Doug Young - Desjardins Capital Markets
Darko Mihelic - RBC Capital Markets
Paul Holden - CIBC
Mario Mendonca - TD Securities
Mike Rizvanovic - KBW Research
Operator
Good morning, and welcome to BMO Financial Group's Q4 2023 Earnings Release and Conference Call for December 1, 2023. 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 to take questions today are Ernie Johannson, Head of BMO North American Personal and Business Banking; Nadim Hirji, Head of BMO Commercial Banking; Alan Tannenbaum, and Dan Barclay are representing BMO Capital Markets; Deland Kamanga from BMO Wealth Management; and Darrel Hackett, BMO 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 Darryl.
Darryl White
Thank you, Christine, and good morning, everyone. Our results this year reflect the fundamental strength and diversification of our businesses, driven by record revenue and ongoing momentum in Canadian personal and commercial banking and the contribution of the Bank of the West, we delivered good performance in a challenging economic backdrop with net income of $8.7 billion in fiscal 2023. Adjusted earnings per share were $2.81 for the fourth quarter and $11.73 for the year.
Pre-provisioned pre-tax earnings grew 5% for the year, driven by 16% growth in revenue, reflecting both organic growth across our businesses and the benefit of acquisitions. Revenue was up 10% in Canadian P&C, 43% in US P&C, and 5% in each of wealth management and capital markets. We continue to have a strong capital position with a CET1 ratio of 12.5%. For the year, return on equity was 12.3% and return on tangible common equity was 15.8%. And this morning, we announced a dividend increase of $0.04 to $1.51 per share, a 6% increase over last year.