BMO delivered record net income of $4.2 billion in 2013, building on our 2012 performance. On an adjusted basis, net income rose to $4.3 billion and EPS was $6.30, increasing 5% from last year. We also announced two dividend increases, bought back over 10 million common shares and strengthened our capital position.
Our continued good results reflect the success of our strategy and have translated into attractive returns for BMO’s shareholders. Our one-year total shareholder return of 29% was the highest among our Canadian peer group. Over the past five years, our shareholders have earned an average annual total shareholder return of 17% on their investment in common shares. We have achieved these returns while managing risk prudently and strengthening our balance sheet.
The bank’s financial results are examined in Management’s Discussion and Analysis (MD&A), where we review our performance and tell our financial story clearly and thoroughly. Our long-standing commitment to ensuring that shareholders receive timely and informative reporting on our financial results earned us the Chartered Professional Accountants of Canada Award of Excellence in Corporate Reporting for Financial Services in two of the last three years.
This year, we expanded our disclosures in several areas in response to recommendations made by the Enhanced Disclosure Task Force established by the Financial Stability Board, which is part of a broader effort by industry participants and regulators to strengthen the resiliency of the financial services industry globally. We are supportive of this effort and hope you find the additional disclosures informative.
Looking forward, we are well-positioned for the current environment:
- Our large North American commercial banking business is a differentiator in an environment where commercial loan growth is expected to continue to outpace consumer loan growth.
- Our flagship Canadian Personal and Commercial banking business is heading into 2014 with good momentum.
- Wealth Management had record results for this year and has good growth opportunities in North America and select global markets.
- We expect growth and operating leverage from investments we have made in our U.S. businesses and from the improving U.S. economy.
- We are working to improve efficiency with an emphasis on simplifying processes and pursuing opportunities to integrate technology and operations infrastructures on a North American basis.
- Our capital position is the strongest among our Canadian peer group with a Basel III Common Equity Tier 1 Ratio of 9.9%, up from the pro-forma estimate of 8.7% at the end of 2012. As we head into 2014, we remain focused on meeting our existing customers’ needs and adding new customers across all our businesses by delivering on our brand promise. We hope you enjoy reading our MD&A and look forward to reporting on our continued progress next year.
As we head into 2014, we remain focused on meeting our existing customers’ needs and adding new customers across all our businesses by delivering on our brand promise. We hope you enjoy reading our MD&A and look forward to reporting on our continued progress next year.
Thomas E. Flynn