Financial Performance and Condition at a Glance (Note 1)


Total Shareholder Return (TSR) (%)

Our Performance

  • BMO shareholders have earned a strong average annual return of 10.9% over the past three years, which was above the 6.2% return of the S&P/TSX Composite Index.
  • BMO’s one-year TSR of 20.2% and five-year average annual TSR of 15.5% both outperformed the S&P/TSX Composite Index, and the five-year TSR also outperformed our Canadian bank peer group average.

See Total Shareholder Return in the Value Measures section of the MD&A.

Peer Group Performance

  • The Canadian peer group three-year average annual TSR was 11.2%. The one-year TSR was 24.9% and the five-year average annual TSR was 14.9%.
  • The North American peer group three-year average annual TSR was 13.6%, the one-year TSR was 35.9% and the five-year average annual TSR was 15.6%, all above the corresponding Canadian peer group averages.
Total Shareholder Return (TSR) (%). 2015: 13.5; 2016: 9.9; 2017: 10.9

Light Blue BMO reported

Black Line Canadian peer group average

Grey Line North American peer group average

Graph shows average annual three-year TSR.

Earnings per Share (EPS) Growth (%)

Our Performance

  • Reported EPS grew $1.00 or 14% to $7.92 in 2017. Adjusted EPS grew $0.64 or 9% to $8.16, primarily reflecting increased earnings.
  • Reported and adjusted net income available to common shareholders was 15% and 10% higher year-over-year, respectively, while the average number of diluted common shares outstanding was relatively unchanged.

See Earnings per Share Growth in the Value Measures section of the MD&A.

Peer Group Performance

  • The Canadian peer group average EPS growth was 12%, excluding one peer bank that was unusually high.
  • Average EPS growth for the North American peer group was 18%.
Earnings per Share (EPS) Growth (%). 2015 reported: 2; 2015 adjusted: 6; 2016 reported: 5; 2016 adjusted: 7; 2017 reported: 14; 2017 adjusted: 9

Light Blue BMO reported

Dark Blue BMO adjusted

Black Line Canadian peer group average

Grey Line North American peer group average

All EPS measures are stated on a diluted basis.

Return on Equity (ROE) (%)

Our Performance

  • Reported ROE was 13.3% and adjusted ROE was 13.7% in 2017, compared with 12.1% and 13.1%, respectively, in 2016.
    ROE increased in 2017, primarily due to growth in income exceeding growth in common equity. There was growth in both earnings and adjusted earnings available to common shareholders. Average common shareholders’ equity increased, primarily due to increased retained earnings.

See Return on Equity in the Value Measures section of the MD&A.

Peer Group Performance

  • The Canadian peer group average ROE of 16.6% was higher than the average ROE of 15.0% in 2016, as ROE increased for all but one bank in the group.
  • Average ROE for the North American peer group was 12.2%, compared to 11.1% in 2016.
Return on Equity (ROE) (%). 2015 reported: 12.5; 2015 adjusted: 13.3; 2016 reported: 12.1; 2016 adjusted 13.1; 2017 reported: 13.3; 2017 adjusted: 13.7

Light Blue BMO reported

Dark Blue BMO adjusted

Black Line Canadian peer group average

Grey Line North American peer group average

Revenue Growth (%)

Our Performance

  • On a net revenue basis*, reported revenue increased $1,178 million or 6% to $20,722 million in 2017 and adjusted revenue increased $1,094 million or 6%, driven by good performance in Canadian P&C, Wealth Management and BMO Capital Markets. Total revenue increased $1,173 million or 6% to $22,260 million in 2017.

See Revenue in the 2017 Financial Performance Review (PDF, 314 KB) section of the MD&A.

Peer Group Performance

  • Revenue growth for the Canadian peer group averaged 7%, slightly lower than the average growth of 8% in the prior year.
  • Average revenue growth for the North American peer group of 8% was modestly higher than the average growth of 7% in 2016, with all banks in the group reporting higher revenues.
Revenue Growth (%). 2015 reported: 8; 2015 adjusted: 8; 2016 reported: 8; 2016 adjusted: 8; 2017 reported: 6; 2017 adjusted: 6

Light Blue BMO reported

Dark Blue BMO adjusted

Black Line Canadian peer group average

Grey Line North American peer group average

* Graph shows net revenue growth, calculated using total revenue net of insurance claims, commissions and changes in policy benefit liabilities (CCPB).

Efficiency Ratio (Expense-to-Revenue Ratio) (%)

Our Performance

  • On a net revenue basis*, the reported efficiency ratio improved 230 basis points to 64.2% in 2017 and the adjusted efficiency ratio improved 110 basis points to 62.8%.

See Non-Interest Expense in the 2017 Financial Performance Review (PDF, 314 KB) section of the MD&A.

Peer Group Performance

  • The Canadian peer group average efficiency ratio was 57.1% in 2017, an improvement from 59.5% in 2016.
  • The average efficiency ratio for the North American peer group of 60.0% improved from 61.6% in 2016.
Efficiency Ratio (%). 2015 reported: 67.2; 2015 adjusted: 65.2; 2016 reported: 66.5; 2016 adjusted: 63.9; 2017 reported: 64.2; 2017 adjusted 62.8

Light Blue BMO reported

Dark Blue BMO adjusted

Black Line Canadian peer group average

Grey Line North American peer group average

* Graph shows the efficiency ratio on a net revenue basis, calculated using total revenue net of CCPB.

Credit Losses (Provision for Credit Losses as a % of Average Net Loans and Acceptances)

Our Performance

  • Provisions for credit losses (PCL) totalled $774 million, down from $815 million in 2016. There was a $76 million pre-tax decrease in the collective allowance in the year, which decreased the total provision for credit losses. Specific PCL of $850 million increased $35 million.
  • Total PCL as a percentage of average net loans and acceptances was 0.21% in 2017, down slightly from 0.23% in the prior year. Specific PCL as a percentage of average net loans and acceptances was 0.23%, consistent with the prior year.

See Provision for Credit Losses in the 2017 Financial Performance Review (PDF, 314 KB) section of the MD&A.

Peer Group Performance

  • The Canadian peer group average PCL represented 29 basis points of average net loans and acceptances, down from 39 basis points in 2016.
  • The North American peer group average PCL represented 30 basis points, down from 37 basis points in 2016.
Provision for Credit Losses as a % of Average Net Loans and Acceptances. 2015: 0.19; 2016: 0.23; 2017: 0.21

Light Blue BMO reported

Black Line Canadian peer group average

Grey Line North American peer group average

Impaired Loans (Gross Impaired Loans and Acceptances as a % of Gross Loans and Acceptances)

Our Performance

  • Gross impaired loans and acceptances (GIL) decreased to $2,174 million from $2,332 million in 2016, and represented 0.57% of gross loans and acceptances, compared to 0.62% a year ago.
  • Formations of new impaired loans and acceptances, a key driver of provisions for credit losses, totalled $2,193 million, down from $2,512 million in 2016, reflecting lower oil and gas impaired loan formations.

See Gross Impaired Loans on page 90 of the Enterprise-Wide Risk Management (PDF, 718 KB) section of the MD&A.

Peer Group Performance

  • The Canadian peer group average ratio of GIL as a percentage of gross loans and acceptances was 0.50%, down from 0.66% in 2016.
  • The average ratio for the North American peer group was 1.04%, down from 1.25% in 2016.
Gross Impaired Loans and Acceptances as a % of Gross Loans and Acceptances. 2015: 0.58; 2016: 0.62; 2017: 0.57

Light Blue BMO reported

Black Line Canadian peer group average

Grey Line North American peer group average

Capital Adequacy

Our Performance

  • BMO’s Common Equity Tier 1 (CET1) Ratio reflects a well-capitalized position.
  • Our CET1 Ratio of 11.4% increased from 10.1% at the end of fiscal 2016 due to higher capital, largely from retained earnings growth and common shares issued through the Shareholder Dividend Reinvestment and Share Purchase Plan and the exercise of stock options, as well as modestly lower source currency risk-weighted assets, partially offset by share repurchases.

See Common Equity Tier 1 Ratio in the Value Measures section and Enterprise-Wide Capital Management in the Financial Condition Review (PDF, 164 KB) section of the MD&A.

Peer Group Performance

  • The Canadian peer group average CET1 Ratio was 11.0% in 2017, compared to an average CET1 Ratio of 10.7% a year ago.
  • The basis for computing capital adequacy ratios in Canada and the United States is not completely comparable.
Capital Adequacy (%). 2015: 10.7; 2016: 10.1; 2017: 11.4

Light Blue BMO reported

Black Line Canadian peer group average

Credit Ratings

Our Performance

  • Credit ratings for BMO’s senior debt, as assessed by the four major rating agencies, are listed below and all four ratings are considered to indicate high-grade, high-quality issues. Standard & Poor’s (S&P) and Fitch have a stable outlook on BMO. Moody’s maintains a negative outlook on all Canadian domestic systemically important banks (DSIBs) and DBRS maintains a negative outlook on many Canadian DSIBs, pending further details on the government’s approach to implementing a bail-in regime.

See page 105 of the Enterprise-Wide Risk Management (PDF, 718 KB) section of the MD&A.


Peer Group Performance

  • Moody’s Canadian peer group median credit rating was lower in 2017 compared with 2016, as Moody’s downgraded the ratings of six Canadian banks, including BMO. The credit ratings awarded by the three remaining rating agencies were unchanged.
  • The North American peer group median credit ratings were unchanged from 2016, and remain slightly lower than the Canadian peer group median for three of the rating agencies.

BMO Financial Group
  2015 2016 2017
DBRS AA AA AA
Fitch AA– AA– AA–
Moody’s Aa3 Aa3 A1
S&P A+ A+ A+
Canadian peer group median*
  2015 2016 2017
DBRS AA AA AA
Fitch AA– AA– AA–
Moody’s Aa3 Aa3 A1
S&P A+ A+ A+
North American peer group median*
  2015 2016 2017
DBRS AH AH AH
Fitch A+ A+ A+
Moody’s A1 A1 A1
S&P A– A– A–

*Data for all years reflects the peer group composition in the most recent year.


Note 1: Adjusted results in this section are non-GAAP. Please see the Non-GAAP Measures (PDF, 30 KB) section of the MD&A.

The Canadian peer group averages exclude BMO and are based on the performance of Canada’s five other largest banks: Canadian Imperial Bank of Commerce, National Bank of Canada, Royal Bank of Canada, Scotiabank and TD Bank Group. The North American peer group averages include the Canadian peer group, as well as BB&T Corporation, Citizens Financial Group, Inc., Fifth Third Bancorp, KeyCorp, The PNC Financial Services Group Inc., Regions Financial Corporation, SunTrust Banks Inc. and U.S. Bancorp. The North American peer group was redefined in 2017. Averages for prior periods have been restated.

Results are as at or for the years ended October 31 for Canadian banks and as at or for the years ended September 30 for U.S. banks.